AN ACT
Relating to school retirees' health insurance coverage; adding new sections 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. A new
section is added to chapter 28A.400 RCW to read as follows:
A
group disability insurance policy, health care service contract, health
maintenance agreement, or health and welfare benefit plan that provides
benefits to retired school district employees and eligible dependents shall not
require the beneficiary to make payment by monthly deduction from the
beneficiary's state retirement allowance if the payment exceeds the retirement
allowance. In such cases, the payment may be made directly by the individual
beneficiary.
NEW
SECTION. Sec. 4. 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. 5. RCW
28A.400.390 and 1991 c 254 s 1 are each repealed.
