AN ACT
Relating to implementation of health care authority responsibilities; amending
RCW 41.05.011, 41.05.022, 41.05.055, 41.05.065, 47.64.270, 41.05.021,
41.04.205, 28A.400.350, 41.04.230, and 41.05.050; adding a new section to
chapter 28A.400 RCW; adding a new section to Title 28B RCW; adding new sections
to chapter 41.05 RCW; adding a new section to chapter 28B.50 RCW; adding a new
section to Title 43 RCW; repealing RCW 41.05.200, 41.05.210, 41.05.240, and
43.72.230; providing an effective date; and declaring an emergency.
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) In
a manner prescribed by the state health care authority, school districts and
educational service districts shall remit to the health care authority for
deposit in the public employees' and retirees' insurance account established in
RCW 41.05.120 the amount specified for remittance in the omnibus appropriations
act.
(2)
The remittance requirements specified in this section shall not apply to
employees of a school district or educational service district who receive
insurance benefits through contracts with the health care authority.
Sec.
2. RCW
41.05.011 and 1994 c 153 s 2 are each amended to read as follows:
Unless
the context clearly requires otherwise, the definitions in this section shall
apply throughout this chapter.
(1)
"Administrator" means the administrator of the authority.
(2)
"State purchased health care" or "health care" means
medical and health care, pharmaceuticals, and medical equipment purchased with
state and federal funds by the department of social and health services, the
department of health, the basic health plan, the state health care authority,
the department of labor and industries, the department of corrections, the
department of veterans affairs, and local school districts.
(3)
"Authority" means the Washington state health care authority.
(4)
"Insuring entity" means an insurer as defined in chapter 48.01 RCW, a
health care service contractor as defined in chapter 48.44 RCW, or a health
maintenance organization as defined in chapter 48.46 RCW. ((On and after
July 1, 1995, "insuring entity" means a certified health plan, as
defined in RCW 43.72.010.))
(5)
"Flexible benefit plan" means a benefit plan that allows employees to
choose the level of health care coverage provided and the amount of employee
contributions from among a range of choices offered by the authority.
(6)
"Employee" includes all full-time and career seasonal employees of
the state, whether or not covered by civil service; elected and appointed
officials of the executive branch of government, including full-time members of
boards, commissions, or committees; and includes any or all part-time and
temporary employees under the terms and conditions established under this
chapter by the authority; justices of the supreme court and judges of the court
of appeals and the superior courts; and members of the state legislature or of
the legislative authority of any county, city, or town who are elected to
office after February 20, 1970. "Employee" also includes: (a) ((By
October 1, 1995, all employees of school districts and educational service
districts. Between October 1, 1994, and September 30, 1995,
"employee" includes employees of those school districts and
educational service districts for whom the authority has undertaken the purchase
of insurance benefits. The transition to insurance benefits purchasing by the
authority may not disrupt existing insurance contracts between school district
or educational service district employees and insurers. However, except to the
extent provided in RCW 28A.400.200, any such contract that provides for health
insurance benefits coverage after October 1, 1995, shall be void as of that
date if the contract was entered into, renewed, or extended after July 1,
1993. Prior to October 1, 1994, "employee" includes employees of a
school district if the board of directors of the school district seeks and
receives the approval of the authority to provide any of its insurance programs
by contract with the authority; (b))) Employees of a county,
municipality, or other political subdivision of the state if the legislative
authority of the county, municipality, or other political subdivision of the
state seeks and receives the approval of the authority to provide any of its
insurance programs by contract with the authority, as provided in RCW
41.04.205; (((c))) (b) employees of employee organizations
representing state civil service employees, at the option of each such employee
organization, and, effective October 1, 1995, employees of employee
organizations currently pooled with employees of school districts for the
purpose of purchasing insurance benefits, at the option of each such employee
organization; and (c) employees of a school district if the authority agrees
to provide any of the school districts' insurance programs by contract with the
authority as provided in RCW 28A.400.350.
(7)
"Board" means the public employees' benefits board established under
RCW 41.05.055.
(8)
"Retired or disabled school employee" means:
(a)
Persons who separated from employment with a school district or educational
service district and are receiving a retirement allowance under chapter 41.32
or 41.40 RCW as of September 30, 1993;
(b)
Persons who separate from employment with a school district or educational
service district on or after October 1, 1993, and immediately upon separation
receive a retirement allowance under chapter 41.32 or 41.40 RCW;
(c)
Persons who separate from employment with a school district or educational
service district due to a total and permanent disability, and are eligible to
receive a deferred retirement allowance under chapter 41.32 or 41.40 RCW.
(9)
"Benefits contribution plan" means a premium only contribution plan,
a medical flexible spending arrangement, or a cafeteria plan whereby state and
public employees may agree to a contribution to benefit costs which will allow
the employee to participate in benefits offered pursuant to 26 U.S.C. Sec. 125
or other sections of the internal revenue code.
(10)
"Salary" means a state employee's monthly salary or wages.
(11)
"Participant" means an individual who fulfills the eligibility and
enrollment requirements under the benefits contribution plan.
(12)
"Plan year" means the time period established by the authority.
Sec.
3. RCW
41.05.022 and 1994 c 153 s 3 are each amended to read as follows:
(1)
The health care authority is hereby designated as the single state agent for
purchasing health services.
(2) On
and after January 1, 1995, at least the following state-purchased health
services programs shall be merged into a single, community-rated risk pool:
Health benefits for groups of employees of school districts and
educational service districts that voluntarily purchase health benefits as
provided in RCW 41.05.011; health benefits for state employees; health
benefits for eligible retired or disabled school employees not eligible for
parts A and B of medicare; and health benefits for eligible state retirees not
eligible for parts A and B of medicare. ((Beginning July 1, 1995, the basic
health plan shall be included in the risk pool. The administrator may develop
mechanisms to ensure that the cost of comparable benefits packages does not
vary widely across the risk pools before they are merged. At the earliest
opportunity the governor shall seek necessary federal waivers and state
legislation to place the medical and acute care components of the medical
assistance program, the limited casualty program, and the medical care services
program of the department of social and health services in this single risk
pool. Long-term care services that are provided under the medical assistance
program shall not be placed in the single risk pool until such services have
been added to the uniform benefits package. On or before January 1, 1997, the
governor shall submit necessary legislation to place the purchasing of health
benefits for persons incarcerated in institutions administered by the
department of corrections into the single community-rated risk pool effective on
and after July 1, 1997.))
(3) At
a minimum, and regardless of other legislative enactments, the state health
services purchasing agent shall:
(a)
Require that a public agency that provides subsidies for a substantial portion
of services now covered under the basic health plan ((or a uniform benefits
package as adopted by the Washington health services commission as provided in
RCW 43.72.130,)) use uniform eligibility processes, insofar as may be
possible, and ensure that multiple eligibility determinations are not required;
(b)
Require that a health care provider or a health care facility that receives
funds from a public program provide care to state residents receiving a state
subsidy who may wish to receive care from them ((consistent with the
provisions of chapter 492, Laws of 1993)), and that ((a health
maintenance organization, health care service contractor, insurer, or certified
health plan)) an insuring entity that receives funds from a public
program accept enrollment from state residents receiving a state subsidy who
may wish to enroll with them ((under the provisions of chapter 492, Laws of
1993));
(c)
Strive to integrate purchasing for all publicly sponsored health services in
order to maximize the cost control potential and promote the most efficient
methods of financing and coordinating services;
(d) ((Annually
suggest changes in state and federal law and rules to bring all publicly funded
health programs in compliance with the goals and intent of chapter 492, Laws of
1993;
(e))) Consult
regularly with the governor, the legislature, and state agency directors whose
operations are affected by the implementation of this section; and
(e)
Ensure the control of benefit costs under managed competition by adopting rules
to prevent employers from entering into an agreement with employees or employee
organizations when the agreement would result in increased utilization in
public employees' benefits board plans or reduce the expected savings of
managed competition.
Sec.
4. RCW
41.05.055 and 1994 c 36 s 1 are each amended to read as follows:
(1)
The public employees' benefits board is created within the authority. The
function of the board is to design and approve insurance benefit plans for
state employees and school district employees.
(2)
The board shall be composed of nine members appointed by the governor as
follows:
(a)
Two representatives of state employees, one of whom shall represent an employee
union certified as exclusive representative of at least one bargaining unit of
classified employees, and one of whom is retired, is covered by a program under
the jurisdiction of the board, and represents an organized group of retired
public employees;
(b)
Two representatives of school district employees, one of whom shall represent
an association of school employees and one of whom is retired, and represents
an organized group of retired school employees;
(c)
Four members with experience in health benefit management and cost containment;
and
(d)
The administrator.
(3) The
member who represents an association of school employees and one member
appointed pursuant to subsection (2)(c) of this section shall be nonvoting
members until such time that there are no less than twelve thousand school
district employee subscribers enrolled with the authority for health care
coverage.
(4)
The governor shall appoint the initial members of the board to staggered terms
not to exceed four years. Members appointed thereafter shall serve two-year
terms. Members of the board shall be compensated in accordance with RCW
43.03.250 and shall be reimbursed for their travel expenses while on official
business in accordance with RCW 43.03.050 and 43.03.060. The board shall
prescribe rules for the conduct of its business. The administrator shall serve
as chair of the board. Meetings of the board shall be at the call of the
chair.
Sec.
5. RCW
41.05.065 and 1994 c 153 s 5 are each amended to read as follows:
(1)
The board shall study all matters connected with the provision of health care
coverage, life insurance, liability insurance, accidental death and
dismemberment insurance, and disability income insurance or any of, or a
combination of, the enumerated types of insurance for employees and their
dependents on the best basis possible with relation both to the welfare of the
employees and to the state((,)). However, liability
insurance shall not be made available to dependents.
(2)
The ((public employees' benefits)) board shall develop employee benefit
plans that include comprehensive health care benefits for all employees. In
developing these plans, the board shall consider the following elements:
(a)
Methods of maximizing cost containment while ensuring access to quality health
care;
(b)
Development of provider arrangements that encourage cost containment and ensure
access to quality care, including but not limited to prepaid delivery systems
and prospective payment methods;
(c)
Wellness incentives that focus on proven strategies, such as smoking cessation,
injury and accident prevention, reduction of alcohol misuse, appropriate
weight reduction, exercise, automobile and motorcycle safety, blood cholesterol
reduction, and nutrition education;
(d)
Utilization review procedures including, but not limited to a cost-efficient
method for prior authorization of services, hospital inpatient length of
stay review, requirements for use of outpatient surgeries and second opinions
for surgeries, review of invoices or claims submitted by service providers, and
performance audit of providers;
(e)
Effective coordination of benefits;
(f)
Minimum standards for insuring entities; and
(g)
Minimum scope and content of ((standard)) public employee benefit
plans to be offered to enrollees participating in the employee health benefit
plans. ((On and after July 1, 1995, the uniform benefits package shall
constitute the minimum level of health benefits offered to employees.)) To
maintain the comprehensive nature of employee health care benefits, employee
eligibility criteria related to the number of hours worked and the benefits
provided to employees shall be substantially equivalent to the state employees'
health benefits plan and eligibility criteria in effect on January 1, 1993. Nothing
in this subsection (2)(g) shall prohibit changes or increases in employee
point-of-service payments or employee premium payments for benefits.
(3)
The board shall design benefits and determine the terms and conditions of
employee participation and coverage, including establishment of eligibility
criteria.
(4) ((The
board shall attempt to achieve enrollment of all employees and retirees in
managed health care systems by July 1994.)) The board may authorize premium
contributions for an employee and the employee's dependents in a manner that
encourages the use of cost-efficient managed health care systems.
(5)
Employees shall choose participation in one of the health care benefit plans
developed by the board and may be permitted to waive coverage under terms
and conditions established by the board.
(6)
The board shall review plans proposed by ((insurance carriers)) insuring
entities that desire to offer property insurance and/or accident and
casualty insurance to state employees through payroll deduction. The board may
approve any such plan for payroll deduction by ((carriers)) insuring
entities holding a valid certificate of authority in the state of
Washington and which the board determines to be in the best interests of
employees and the state. The board shall promulgate rules setting forth
criteria by which it shall evaluate the plans.
Sec.
6. RCW 47.64.270
and 1993 c 492 s 224 are each amended to read as follows:
((Until
December 31, 1996,)) Absent a collective bargaining agreement to the
contrary, the department of transportation shall provide contributions to
insurance and health care plans for ferry system employees and dependents, as
determined by the state health care authority, under chapter 41.05 RCW; and the
ferry system management and employee organizations may collectively bargain for
other insurance and health care plans, and employer contributions may exceed
that of other state agencies as provided in RCW 41.05.050, subject to RCW
47.64.180. ((On January 1, 1997, ferry employees shall enroll in certified
health plans under the provisions of chapter 492, Laws of 1993.)) To the
extent that ferry employees by bargaining unit have absorbed the required
offset of wage increases by the amount that the employer's contribution for
employees' and dependents' insurance and health care plans exceeds that of
other state general government employees in the 1985-87 fiscal biennium,
employees shall not be required to absorb a further offset except to the extent
the differential between employer contributions for those employees and all
other state general government employees increases during any subsequent fiscal
biennium. If such differential increases in the 1987-89 fiscal biennium or the
1985-87 offset by bargaining unit is insufficient to meet the required
deduction, the amount available for compensation shall be reduced by bargaining
unit by the amount of such increase or the 1985-87 shortage in the required
offset. Compensation shall include all wages and employee benefits.
Sec.
7. RCW
41.05.021 and 1994 c 309 s 1 are each amended to read as follows:
(1)
The Washington state health care authority is created within the executive
branch. The authority shall have an administrator appointed by the governor,
with the consent of the senate. The administrator shall serve at the pleasure
of the governor. The administrator may employ up to seven staff members, who
shall be exempt from chapter 41.06 RCW, and any additional staff members as are
necessary to administer this chapter. The administrator may delegate any power
or duty vested in him or her by this chapter, including authority to make final
decisions and enter final orders in hearings conducted under chapter 34.05
RCW. The primary duties of the authority shall be to: Administer state
employees' insurance benefits and retired or disabled school employees'
insurance benefits((,)); administer the basic health plan pursuant to
chapter 70.47 RCW; study state-purchased health care programs in order to
maximize cost containment in these programs while ensuring access to quality
health care((,)); and implement state initiatives, joint
purchasing strategies, and techniques for efficient administration that have
potential application to all state-purchased health services. The authority's
duties include, but are not limited to, the following:
(a) To
administer health care benefit programs for employees and retired or disabled
school employees as specifically authorized in RCW 41.05.065 and in accordance
with the methods described in RCW 41.05.075, 41.05.140, and other provisions of
this chapter;
(b) To
analyze state-purchased health care programs and to explore options for cost
containment and delivery alternatives for those programs that are consistent
with the purposes of those programs, including, but not limited to:
(i)
Creation of economic incentives for the persons for whom the state purchases
health care to appropriately utilize and purchase health care services,
including the development of flexible benefit plans to offset increases in
individual financial responsibility;
(ii)
Utilization of provider arrangements that encourage cost containment, including
but not limited to prepaid delivery systems, utilization review, and
prospective payment methods, and that ensure access to quality care, including
assuring reasonable access to local providers, especially for employees
residing in rural areas;
(iii)
Coordination of state agency efforts to purchase drugs effectively as provided
in RCW 70.14.050;
(iv)
Development of recommendations and methods for purchasing medical equipment and
supporting services on a volume discount basis; and
(v)
Development of data systems to obtain utilization data from state-purchased
health care programs in order to identify cost centers, utilization patterns,
provider and hospital practice patterns, and procedure costs, utilizing the
information obtained pursuant to RCW 41.05.031;
(c) To
analyze areas of public and private health care interaction;
(d) To
provide information and technical and administrative assistance to the board;
(e) To
review and approve or deny applications from counties, municipalities, and
other political subdivisions of the state to provide state-sponsored insurance
or self-insurance programs to their employees in accordance with the provisions
of RCW 41.04.205, setting the premium contribution for approved groups as
outlined in RCW 41.05.050;
(f) To
appoint a health care policy technical advisory committee as required by RCW
41.05.150;
(g) To
establish billing procedures and collect funds from school districts and
educational service districts under *RCW 28A.400.400 in a way that minimizes
the administrative burden on districts; and
(h) To
promulgate and adopt rules consistent with this chapter as described in RCW
41.05.160.
(2) On
and after ((July)) January 1, ((1995)) 1996,
the public employees' benefits board ((shall)) may implement
strategies to promote managed competition among employee health benefit plans
((in accordance with the Washington health services commission schedule of
employer requirements)). Strategies may include but are not limited to:
(a)
Standardizing the benefit package;
(b)
Soliciting competitive bids for the benefit package;
(c)
Limiting the state's contribution to a percent of the lowest priced qualified
plan within a geographical area((. If the state's contribution is less than
one hundred percent of the lowest priced qualified bid, employee financial
contributions shall be structured on a sliding-scale basis related to household
income));
(d)
Monitoring the impact of the approach under this subsection with regards to:
Efficiencies in health service delivery, cost shifts to subscribers, access to
and choice of managed care plans state-wide, and quality of health services.
The health care authority shall also advise on the value of administering a
benchmark employer-managed plan to promote competition among managed care
plans. The health care authority shall report its findings and recommendations
to the legislature by January 1, 1997.
(3)
The health care authority shall, no later than July 1, 1996, submit to the
appropriate committees of the legislature, proposed methods whereby, through
the use of a voucher-type process, state employees may enroll with any health
carrier to receive employee benefits. Such methods shall include the employee
option of participating in a health care savings account, as set forth in Title
48 RCW.
(4)
The Washington health care policy board shall study the necessity and
desirability of the health care authority continuing as a self-insuring entity
and make recommendations to the appropriate committees of the legislature by
December 1, 1996.
Sec.
8. RCW
41.04.205 and 1993 c 386 s 3 are each amended to read as follows:
(1)
Notwithstanding the provisions of RCW 41.04.180, the employees, with their
dependents, of any county, municipality, or other political subdivision of this
state shall be eligible to participate in any insurance or self-insurance
program for employees administered under chapter 41.05 RCW if the legislative
authority of any such county, municipality, or other political subdivisions of
this state determines, subject to collective bargaining under applicable
statutes, a transfer to an insurance or self-insurance program administered
under chapter 41.05 RCW should be made. In the event of a special district
employee transfer pursuant to this section, members of the governing authority
shall be eligible to be included in such transfer if such members are
authorized by law as of June 25, 1976 to participate in the insurance program
being transferred from and subject to payment by such members of all costs of
insurance for members.
(2)
When the legislative authority of a county, municipality, or other political
subdivision determines to so transfer, the state health care authority shall:
(a)
Establish the conditions ((under which the transfer may be made, which shall
include the requirements that:
(i)
All the eligible employees of the political subdivision transfer as a unit, and
(ii)
The political subdivision involved obligate itself to make employer
contributions in an amount at least equal to those provided by the state as
employer)) for participation; and
(b) ((Hold
public hearings on the application for transfer; and
(c))) Have the
sole right to reject the application.
Approval
of the application by the state health care authority shall effect a transfer
of the employees involved to the insurance, self-insurance, or health care
program applied for.
(3)
Any application of this section to members of the law enforcement officers' and
fire fighters' retirement system under chapter 41.26 RCW is subject to chapter
41.56 RCW.
(4) ((The
requirements in subsection (2)(a) (i) and (ii) of this section need not be
applied to)) School districts may voluntarily transfer,
except that all eligible employees in a bargaining unit of a school district
may transfer only as a unit and all nonrepresented employees in a district may
transfer only as a unit.
NEW
SECTION. Sec. 9. The
following acts or parts of acts are each repealed:
(1) RCW
41.05.200 and 1993 c 492 s 228;
(2) RCW
41.05.210 and 1993 c 492 s 229;
(3) RCW
41.05.240 and 1993 c 492 s 468; and
(4) RCW
43.72.230 and 1993 c 492 s 465.
NEW
SECTION. Sec. 10. A new
section is added to Title 28B RCW to read as follows:
Employees
of technical colleges who were members of the public employees' benefits trust
and as a result of chapter 238, Laws of 1991, were required to enroll in public
employees' benefits board-sponsored plans, must decide whether to reenroll in
the trust by January 1, 1996, or the expiration of the current collective
bargaining agreements, whichever is later. Employees of a bargaining unit or
administrative or managerial employees otherwise not included in a bargaining unit
shall be required to transfer by group. Administrative or managerial employees
shall transfer in accordance with rules established by the health care
authority. If employee groups elect to transfer, they are eligible to reenroll
in the public employees' benefits board-sponsored plans. This one-time
reenrollment option in the public employees' benefits board sponsored plans is
available to be exercised in January 2001, or only every five years thereafter,
until exercised.
NEW
SECTION. Sec. 11. A new
section is added to chapter 41.05 RCW to read as follows:
(1)
The state of Washington may enter into benefits contribution plans with
employees of the state pursuant to the internal revenue code, 26 U.S.C. Sec.
125, for the purpose of making it possible for employees of the state to select
on a "before-tax basis" certain taxable and nontaxable benefits
pursuant to 26 U.S.C. Sec. 125. The purpose of the benefits contribution plan
established in this chapter is to attract and retain individuals in
governmental service by permitting them to enter into agreements with the state
to provide for benefits pursuant to 26 U.S.C. Sec. 125 and other applicable
sections of the internal revenue code.
(2)
Nothing in the benefits contribution plan constitutes an employment agreement
between the participant and the state, and nothing contained in the
participant's benefits contribution agreement, the plan, this section, or
sections 12 through 17 of this act gives a participant any right to be retained
in state employment.
NEW
SECTION. Sec. 12. A new
section is added to chapter 41.05 RCW to read as follows:
The
authority shall have responsibility for the formulation and adoption of a plan,
policies, and procedures designed to guide, direct, and administer the benefits
contribution plan. For the plan year beginning January 1, 1996, the
administrator may establish a premium only contribution plan. Expansion of the
benefits contribution plan to a medical flexible spending arrangement or
cafeteria plan during subsequent plan years shall be subject to approval by the
director of the office of financial management.
(1) A
plan document describing the benefits contribution plan shall be adopted and
administered by the authority. The authority shall represent the state in all
matters concerning the administration of the plan. The state, through the
authority, may engage the services of a professional consultant or
administrator on a contractual basis to serve as an agent to assist the
authority or perform the administrative functions necessary in carrying out the
purposes of this section and sections 11 and 13 through 16 of this act.
(2)
The authority shall formulate and establish policies and procedures for the
administration of the benefits contribution plan that are consistent with
existing state law, the internal revenue code, and the regulations adopted by
the internal revenue service as they may apply to the benefits offered to
participants under the plan.
(3)
Every action taken by the authority in administering this section and sections
11 and 13 through 16 of this act shall be presumed to be a fair and reasonable
exercise of the authority vested in or the duties imposed upon it. The
authority shall be presumed to have exercised reasonable care, diligence, and
prudence and to have acted impartially as to all persons interested unless the
contrary be proved by clear and convincing affirmative evidence.
NEW
SECTION. Sec. 13. A new
section is added to chapter 41.05 RCW to read as follows:
(1)
Elected officials and all permanent employees of the state are eligible to
participate in the benefits contribution plan and contribute amount(s) by
agreement with the authority. The authority may adopt rules to permit
participation in the plan by temporary employees of the state.
(2)
Persons eligible under subsection (1) of this section may enter into benefits
contribution agreements with the state.
(3)(a)
In the initial year of the medical flexible spending arrangement or cafeteria
plan, if authorized, an eligible person may become a participant after the
adoption of the plan and before its effective date by agreeing to have a
portion of his or her gross salary contributed and deposited into a health care
and other benefits account to be used for reimbursement of expenses covered by
the plan.
(b)
After the initial year of the medical flexible spending arrangement or
cafeteria plan, if authorized, an eligible person may become a participant for
a full plan year, with annual benefit selection for each new plan year made
before the beginning of the plan year, as determined by the authority, or upon
becoming eligible.
(c)
Once an eligible person elects to participate and the amount of gross salary
that he or she shall contribute and the benefit for which the funds are to be
used during the plan year is determined, the agreement shall be irrevocable and
may not be amended during the plan year except as provided in (d) of this
subsection. Prior to making an election to participate in the benefit
contribution plan, the eligible person shall be informed in writing of all the
benefits and contributions that will occur as a result of such election.
(d)
The authority shall provide in the benefits contribution plan that a
participant may enroll, terminate, or change his or her election after the plan
year has begun if there is a significant change in a participant's status, as
provided by 26 U.S.C. Sec. 125 and the regulations adopted under that section
and defined by the authority.
(4)
The authority shall establish as part of the benefits contribution plan the
procedures for and effect of withdrawal from the plan by reason of retirement,
death, leave of absence, or termination of employment. To the extent possible
under federal law, the authority shall protect participants from forfeiture of
rights under the plan.
(5)
Any contribution under the benefits contribution plan shall continue to be
included as reportable compensation for the purpose of computing the state
retirement and pension benefits earned by the employee pursuant to chapters
41.26, 41.32, 41.40, and 43.43 RCW.
NEW
SECTION. Sec. 14. A new
section is added to chapter 41.05 RCW to read as follows:
The
authority shall keep or cause to be kept full and adequate accounts and records
of the assets, obligations, transactions, and affairs of a benefits
contribution plan created under section 11 of this act.
NEW
SECTION. Sec. 15. A new
section is added to chapter 41.05 RCW to read as follows:
(1)
The state may terminate the benefits contribution plan at the end of the plan
year or upon notification of federal action affecting the status of the plan.
(2)
The authority may amend the benefits contribution plan at any time if the
amendment does not affect the rights of the participants to receive eligible
reimbursement from the participants' benefits contribution accounts.
NEW
SECTION. Sec. 16. A new
section is added to chapter 41.05 RCW to read as follows:
The
authority shall adopt rules necessary to implement sections 11 through 15 of
this act.
NEW
SECTION. Sec. 17. A new
section is added to chapter 41.05 RCW to read as follows:
Sections
11 through 16 of this act shall be construed to effectuate the purposes of 26
U.S.C. Sec. 125 and other applicable sections of the internal revenue code as
required.
Sec.
18. RCW
28A.400.350 and 1993 c 492 s 226 are each amended to read as follows:
(1)
The board of directors of any of the state's school districts may make
available liability, life, health, health care, accident, disability and salary
protection or insurance or any one of, or a combination of the enumerated types
of insurance, or any other type of insurance or protection, for the members of
the boards of directors, the students, and employees of the school district,
and their dependents. Such coverage may be provided by contracts with private
carriers, with the state health care authority after July 1, 1990, pursuant to
the approval of the authority administrator, or through self-insurance or
self-funding pursuant to chapter 48.62 RCW, or in any other manner authorized
by law. ((Except for health benefits purchased with nonstate funds as
provided in RCW 28A.400.200, effective on and after October 1, 1995, health
care coverage, life insurance, liability insurance, accidental death and
dismemberment insurance, and disability income insurance shall be provided only
by contracts with the state health care authority.))
(2)
Whenever funds are available for these purposes the board of directors of the
school district may contribute all or a part of the cost of such protection or
insurance for the employees of their respective school districts and their
dependents. The premiums on such liability insurance shall be borne by the
school district.
After
October 1, 1990, school districts may not contribute to any employee protection
or insurance other than liability insurance unless the district's employee
benefit plan conforms to RCW 28A.400.275 and 28A.400.280.
(3)
For school board members and students, the premiums due on such protection or
insurance shall be borne by the assenting school board member or student. The
school district may contribute all or part of the costs, including the
premiums, of life, health, health care, accident or disability insurance which
shall be offered to all students participating in interschool activities on the
behalf of or as representative of their school or school district. The school
district board of directors may require any student participating in
extracurricular interschool activities to, as a condition of participation,
document evidence of insurance or purchase insurance that will provide adequate
coverage, as determined by the school district board of directors, for medical
expenses incurred as a result of injury sustained while participating in the
extracurricular activity. In establishing such a requirement, the district
shall adopt regulations for waiving or reducing the premiums of such coverage
as may be offered through the school district to students participating in
extracurricular activities, for those students whose families, by reason of
their low income, would have difficulty paying the entire amount of such
insurance premiums. The district board shall adopt regulations for waiving or
reducing the insurance coverage requirements for low-income students in order
to assure such students are not prohibited from participating in
extracurricular interschool activities.
(4)
All contracts for insurance or protection written to take advantage of the
provisions of this section shall provide that the beneficiaries of such
contracts may utilize on an equal participation basis the services of those
practitioners licensed pursuant to chapters 18.22, 18.25, 18.53, 18.57, and
18.71 RCW.
NEW
SECTION. Sec. 19. A new
section is added to chapter 28B.50 RCW to read as follows:
(1) In
a manner prescribed by the state health care authority, technical colleges who
have employees enrolled in a benefits trust shall remit to the health care
authority for deposit in the public employees' and retirees' insurance account
established in RCW 41.05.120 the amount specified for remittance in the omnibus
appropriations act.
(2)
The remittance requirements of this section do not apply to employees of a
technical college who receive insurance benefits through contracts with the
health care authority.
NEW
SECTION. Sec. 20. A new
section is added to Title 43 RCW to read as follows:
For
the purpose of accurately describing professional health services purchased by
the state, health-related state agencies may develop fee schedules based on
billing codes and service descriptions published by the American medical
association or the United States federal health care financing administration,
or develop agency unique codes and service descriptions.
Sec.
21. RCW
41.04.230 and 1993 c 2 s 26 (Initiative Measure No. 134, approved November 3,
1992) are each amended to read as follows:
Any
official of the state authorized to disburse funds in payment of salaries and
wages of public officers or employees is authorized, upon written request of
the officer or employee, to deduct from the salaries or wages of the officers
or employees, the amount or amounts of subscription payments, premiums,
contributions, or continuation thereof, for payment of the following:
(1)
Credit union deductions: PROVIDED, That twenty-five or more employees of a
single state agency or a total of one hundred or more state employees of
several agencies have authorized such a deduction for payment to the same
credit union. An agency may, in its own discretion, establish a minimum
participation requirement of fewer than twenty-five employees.
(2)
Parking fee deductions: PROVIDED, That payment is made for parking facilities
furnished by the agency or by the department of general administration.
(3)
U.S. savings bond deductions: PROVIDED, That a person within the particular
agency shall be appointed to act as trustee. The trustee will receive all
contributions; purchase and deliver all bond certificates; and keep such
records and furnish such bond or security as will render full accountability
for all bond contributions.
(4)
Board, lodging or uniform deductions when such board, lodging and uniforms are
furnished by the state, or deductions for academic tuitions or fees or
scholarship contributions payable to the employing institution.
(5)
Dues and other fees deductions: PROVIDED, That the deduction is for payment of
membership dues to any professional organization formed primarily for public
employees or college and university professors: AND PROVIDED, FURTHER, That
twenty-five or more employees of a single state agency, or a total of one
hundred or more state employees of several agencies have authorized such a
deduction for payment to the same professional organization.
(6)
Labor or employee organization dues may be deducted in the event that a payroll
deduction is not provided under a collective bargaining agreement under the
provisions of RCW 41.06.150: PROVIDED, That twenty-five or more officers or
employees of a single agency, or a total of one hundred or more officers or
employees of several agencies have authorized such a deduction for payment to
the same labor or employee organization: PROVIDED, FURTHER, That labor or
employee organizations with five hundred or more members in state government
may have payroll deduction for employee benefit programs.
(7)
Insurance contributions to the authority for payment of premiums under
contracts authorized by the state health care authority. However,
enrollment or assignment by the state health care authority to participate in a
health care benefit plan, as required by RCW 41.05.065(5), shall authorize a
payroll deduction of premium contributions without a written consent under the
terms and conditions established by the public employees benefits board.
(8)
Deductions to a bank, savings bank, or savings and loan association if (a) the
bank, savings bank, or savings and loan association is authorized to do
business in this state; and (b) twenty-five or more employees of a single
agency, or fewer, if a lesser number is established by such agency, or a total
of one hundred or more state employees of several agencies have authorized a
deduction for payment to the same bank, savings bank, or savings and loan
association.
Deductions
from salaries and wages of public officers and employees other than those
enumerated in this section or by other law, may be authorized by the director
of financial management for purposes clearly related to state employment or
goals and objectives of the agency and for plans authorized by the state health
care authority.
The
authority to make deductions from the salaries and wages of public officers and
employees as provided for in this section shall be in addition to such other
authority as may be provided by law: PROVIDED, That the state or any
department, division, or separate agency of the state shall not be liable to
any insurance carrier or contractor for the failure to make or transmit any
such deduction.
Sec.
22. RCW
41.05.050 and 1994 c 309 s 2 are each amended to read as follows:
(1)
Every department, division, or separate agency of state government, and such
county, municipal, or other political subdivisions as are covered by this
chapter, shall provide contributions to insurance and health care plans for its
employees and their dependents, the content of such plans to be determined by
the authority. Contributions, paid by the county, the municipality, or other
political subdivision for their employees, shall include an amount determined
by the authority to pay such administrative expenses of the authority as are
necessary to administer the plans for employees of those groups. Contributions
to be paid by school districts or educational service districts shall be
adjusted by the authority to reflect that retired school employees are covered
under RCW 41.05.250, and are not covered under RCW 41.05.080. All such
contributions will be paid into the public employees' health insurance account.
(2)
The contributions of any department, division, or separate agency of the state
government, and such county, municipal, or other political subdivisions as are
covered by this chapter, shall be set by the authority, subject to the approval
of the governor for availability of funds as specifically appropriated by the
legislature for that purpose. Insurance and health care contributions for
ferry employees shall be governed by RCW 47.64.270 ((until December 31,
1996. On and after January 1, 1997, ferry employees shall enroll with
certified health plans under chapter 492, Laws of 1993)).
(3)
The authority shall transmit a recommendation for the amount of the employer
contribution to the governor and the director of financial management for
inclusion in the proposed budgets submitted to the legislature.
NEW SECTION. Sec. 23. This act
is necessary for the immediate preservation of the public peace, health, or
safety, or support of the state government and its existing public
institutions, and shall take effect July 1, 1995.
