Committee clarifies retiree eligibility for State and Public School Life and Health Insurance Program

Grant Wallace, director of the Employee Benefits Division, told the committee House Bill 1327 would change the program name to the State and Public School Life and Health Insurance Program and clarify statutory eligibility rules for retirees.

"There are 2 main requirements and this bill is trying to clarify and put in statute specific requirements so there are no questions on who qualifies and how you get to participate in this program. Number 1, you must be vested in 1 of the retirement systems. Number 2, you must have been in the program for at least 5 years before retiring. There's 1 exception to that. I'm a perfect example, for legislators," Grant Wallace said.

Wallace explained the one exception: employees who were employed prior to February (year not specified in the transcript) need only one day of participation to become eligible for retiree coverage. He also said the bill confirms members cannot participate if federal law creates a conflict and clarifies that failure to timely respond to enrollment notices does not constitute grounds for reconsideration.

Committee members asked about spouse coverage, COBRA gaps and whether the retiree or the city typically bears premium costs. Wallace said the retiree plan options include a group Medicare Advantage plan and a traditional supplemental plan; the Medicare Advantage plan generally offers a lower premium. He and committee actuary testimony indicated no fiscal impact to the state retirement systems and minimal to no fiscal impact to the insurance program.

Representative Warren closed and moved to pass HB 1327; the motion received a second and the committee approved the bill by voice vote. No roll-call tally appears in the committee transcript.

The bill passed with the committee's approval and will proceed in the legislative process.