H-4643.1          _______________________________________________

                            SUBSTITUTE HOUSE BILL 2857

                  _______________________________________________

State of Washington              52nd Legislature             1992 Regular Session

By House Committee on Appropriations (originally sponsored by Representatives Hine, Locke, Spanel, Ferguson, Jones, Dorn, Paris, Kremen, G. Fisher, Brough, Pruitt, Rayburn, Prentice, Franklin, Ogden, Roland, Sheldon, Nelson, Bowman, Leonard, Belcher, Orr, Brekke, Bray, H. Myers, Rasmussen, Fraser, G. Cole, O'Brien, J. Kohl and Anderson)

Read first time 02/07/92.  Providing for continued health care benefit coverage of retired and disabled school district employees and their dependents.

     AN ACT Relating to school retirees' health insurance coverage; adding a new section to chapter 28A.400 RCW; creating new sections; and repealing RCW 28A.400.390.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION. Sec. 1.  A new section is added to chapter 28A.400 RCW to read as follows:

     (1) Every group disability insurance policy, health care service contract, health maintenance agreement, and health and welfare benefit plan obtained or created to provide benefits to employees of school districts and their dependents shall contain provisions that permit retired and disabled employees to continue medical, dental, or vision coverage under the group policy, contract, agreement, or plan until June 30, 1994, or until the employee becomes eligible for federal medicare coverage, whichever occurs first.  The terms and conditions for election and maintenance of such continued coverage shall conform to the standards established under the federal consolidated omnibus budget reconciliation act of 1985, as amended.  The period of continued coverage provided under this section shall run concurrently with any period of coverage guaranteed under the federal consolidated omnibus budget reconciliation act of 1985, as amended.

     (2) This section applies to:

     (a) School district employees who retired or lost insurance coverage due to disability after July 28, 1991;

     (b) School district employees who retired or lost insurance coverage due to disability within the eighteen-month period ending on July 28, 1991; and

     (c) School district employees who retired or lost insurance coverage due to disability prior to January 28, 1990, and who were covered by their employing district's insurance plan on January 1, 1991.

     (3) For the purposes of this section "retired employee" means an employee who separates from district service and is eligible at the time of separation from service to receive, immediately following separation from service, a retirement allowance under chapter 41.32 or 41.40 RCW.

     (4) The superintendent of public instruction shall adopt administrative rules to implement this section.

NEW SECTION. Sec. 2.      (1) The health care authority shall study and develop recommendations regarding group health insurance coverage for retired and disabled school district employees.  The health care authority shall collect such information as it deems necessary to address the following issues:

     (a) Alternatives for making appropriate health insurance coverage available to currently retired and disabled school district employees, including allowing these employees to participate in insurance plans offered by the state employees' benefits board at no additional cost to the state;

     (b) Development of estimated costs and funding mechanisms to provide health insurance coverage for currently retired and disabled school district employees at a reasonable cost, including alternatives for partial subsidization of costs by active employees or the state; and

     (c) Identification of issues and alternatives for defining eligibility for group health insurance coverage for currently retired and disabled school district employees.

     (2) The health care authority may form technical advisory committees to assist with the study.  The health care authority shall submit its findings and recommendations to the legislature by January 15, 1993.

NEW SECTION. Sec. 3.      If specific funding for the purposes of section 2 of this act, referencing this act by bill number, is not provided by June 30, 1992, in the omnibus appropriations act, section 2 of this act shall be null and void.

NEW SECTION. Sec. 4.      RCW 28A.400.390 and 1991 c 254 s 1 are each repealed.