H-1539.1 _______________________________________________
HOUSE BILL 1842
_______________________________________________
State of Washington 52nd Legislature 1991 Regular Session
By Representatives Sprenkle, Dorn, Peery and Winsley.
Read first time February 12, 1991. Referred to Committee on Appropriations.
AN ACT Relating to school employees health care; and amending RCW 28A.400.270 and 28A.400.280.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
Sec. 1. RCW 28A.400.270 and 1990 1st ex.s. c 11 s 4 are each amended to read as follows:
Unless the context clearly requires otherwise, the definitions in this section apply throughout RCW 28A.400.275 and 28A.400.280.
(1) "School district employee benefit plan" means the overall plan used by the district for distributing fringe benefit subsidies to employees, including the method of determining employee coverage and the amount of employer contributions, as well as the characteristics of benefit providers and the specific benefits or coverage offered. It shall not include coverage offered to district employees for which there is no contribution from public funds.
(2) "Fringe benefit" does not include liability coverage, old-age survivors' insurance, workers' compensation, unemployment compensation, retirement benefits under the Washington state retirement system, or payment for unused leave for illness or injury under RCW 28A.400.210.
(3) "Basic benefits" as determined through local bargaining shall include a medical plan and may include dental, vision, group term life, and group long-term disability insurance coverage. The least-cost basic benefit plans available to a bargaining unit may be defined as basic benefits for purposes of pooling as defined in RCW 28A.400.280.
(4) "Supplemental basic benefits" means the other basic benefits available to a bargaining unit that are not included as basic benefits for the purpose of pooling as defined in RCW 28A.400.280, and plans providing reimbursement for qualified medical, dental, and vision expenses.
(5) "Basic benefits" are determined through local bargaining and are limited to medical, dental, vision, group term life, and group long-term disability insurance coverage.
(((4)))
(6) "Benefit providers" include insurers, third party claims
administrators, direct providers of employee fringe benefits, health
maintenance organizations, health care service contractors, and the Washington
state health care authority or any plan offered by the authority.
(((5)))
(7) "Group term life insurance coverage" means term life
insurance coverage provided for, at a minimum, all full-time employees in a
bargaining unit or all full-time nonbargaining group employees.
(((6)))
(8) "Group long-term disability insurance coverage" means
long-term disability insurance coverage provided for, at a minimum, all
full-time employees in a bargaining unit or all full-time nonbargaining group
employees.
Sec. 2. RCW 28A.400.280 and 1990 1st ex.s. c 11 s 6 are each amended to read as follows:
(1) Except as provided in subsection (2) of this section, school districts may provide employer fringe benefit contributions after October 1, 1990, only for basic benefits. However, school districts may continue payments under contracts with employees or benefit providers in effect on April 13, 1990, until the contract expires.
(2)
School districts may provide employer contributions after October 1, ((1990))
1991, for supplemental basic benefits and optional benefit plans,
in addition to basic benefits, only for employees included in pooling
arrangements under this subsection. Supplemental basic benefits or optional
benefit plans may not include employee beneficiary accounts that can be
liquidated by the employee on termination of employment. Supplemental basic
benefits and optional benefit plans may be offered only if:
(a) The school district pools benefit allocations among employees using a pooling arrangement that includes at least one employee bargaining unit and/or all nonbargaining group employees;
(b) Each full-time employee included in the pooling arrangement is offered basic benefits, including coverage for dependents, without a payroll deduction for premium charges;
(c)
Each full-time employee included in the pooling arrangement, regardless of the
number of dependents receiving basic coverage, receives the same additional
employer contribution for ((other coverage)) supplemental basic
benefits or optional benefits; and
(d) ((For
part-time employees included in the pooling arrangement, participation in
optional benefit plans shall be governed by the same eligibility criteria
and/or proration of employer contributions used for allocations for basic
benefits)) Employees who waive part of their basic benefit coverage may
spend their unused basic benefit allocation based on employee-only rates on
supplemental basic benefits.
(3) Savings accruing to school districts due to limitations on benefit options under this section shall be pooled and made available by the districts to reduce out-of-pocket premium expenses for employees needing basic coverage for dependents. School districts are not intended to divert state benefit allocations for other purposes.