6187-S AMS DOUM SUND 003

SSB 6187 - S AMD 746

By Senators Doumit and Fraser

NOT ADOPTED 2/25/04

On page 165, after line 2, strike everything through page 166, line 38 and insert the following:

"Sec. 704. 2003 1st sp.s. c 25 s 709 (uncodified) is amended to read as follows:

FOR THE GOVERNOR--COMPENSATION--INSURANCE BENEFITS GOVERNOR||COMPENSATION--INSURANCE BENEFITS

General Fund--State Appropriation (FY 2004)(($8,243,000))

$8,821,000

General Fund--State Appropriation (FY 2005)(($38,879,000))

$44,968,000

Dedicated Funds and Accounts Appropriation(($41,232,000))

$44,119,000

TOTAL APPROPRIATION(($88,354,000))

$97,908,000

The appropriations in this section are subject to the following conditions and limitations:

(1) ((The appropriation from dedicated funds and accounts shall be made in the amounts specified and from the dedicated funds and accounts specified in LEAP document 2003-38, a computerized tabulation developed by the legislative evaluation and accountability program committee on June 2, 2003, which is hereby incorporated by reference. The office of financial management shall allocate the moneys appropriated in this section in the amounts specified and to the state agencies specified in LEAP document 2003-38, and adjust appropriation schedules accordingly.

(2)))(a) The monthly employer funding rate for insurance benefit premiums, public employees' benefits board administration, and the uniform medical plan, shall not exceed $504.89 per eligible employee for fiscal year 2004, and (($592.30)) $600.85 for fiscal year 2005.

(b) Within the rates in (a) of this subsection, $4.13 per eligible employee shall be included in the employer funding rate for fiscal year 2004, and $2.11 per eligible employee shall be included in the employer funding rate for fiscal year 2005, solely to increase life insurance coverage in accordance with a court approved settlement in Burbage et al. v. State of Washington (Thurston county superior court cause no. 94-2-02560-8).

(c) In order to achieve the level of funding provided for health benefits, the public employees' benefits board shall require any or all of the following: Employee premium copayments, increases in point-of-service cost sharing, the implementation of managed competition, or make other changes to benefits consistent with RCW 41.05.065.

(d) The health care authority shall deposit any moneys received on behalf of the uniform medical plan as a result of rebates on prescription drugs, audits of hospitals, subrogation payments, or any other moneys recovered as a result of prior uniform medical plan claims payments, into the public employees' and retirees' insurance account to be used for insurance benefits. Such receipts shall not be used for administrative expenditures.

(((3))) (2) The health care authority, subject to the approval of the public employees' benefits board, shall provide subsidies for health benefit premiums to eligible retired or disabled public employees and school district employees who are eligible for parts A and B of medicare, pursuant to RCW 41.05.085. From January 1, 2004, through December 31, 2004, the subsidy shall be $102.35. Starting January 1, 2005, the subsidy shall be $116.19 per month.

(((4))) (3) Technical colleges, school districts, and educational service districts shall remit to the health care authority for deposit into the public employees' and retirees' insurance account established in RCW 41.05.120 the following amounts:

(a) For each full-time employee, $42.76 per month beginning September 1, 2003, and $49.14 beginning September 1, 2004;

(b) For each part-time employee who, at the time of the remittance, is employed in an eligible position as defined in RCW 41.32.010 or 41.40.010 and is eligible for employer fringe benefit contributions for basic benefits, $42.76 each month beginning September 1, 2003, and $49.14 beginning September 1, 2004, prorated by the proportion of employer fringe benefit contributions for a full-time employee that the part-time employee receives.

The remittance requirements specified in this subsection shall not apply to employees of a technical college, school district, or educational service district who purchase insurance benefits through contracts with the health care authority.

(((5))) (4) The appropriations in this section include amounts sufficient to fund health benefits for ferry workers at the premium levels specified in subsection (2) of this section, consistent with the 2003-2005 transportation appropriations act."

On page 119, line 15, strike "$122,735,000" and insert "$147,111,000" and adjust the total appropriation accordingly.

On page 121, on line 25, strike "$117,060,000" and insert "$140,976,000".

On page 121, on line 29, strike "$570.74" and insert "$600.85".

Adjust internal references and the appropriate formula allocation factors accordingly.

Renumber the sections consecutively and correct any internal references accordingly.

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EFFECT: Provides an additional $39 million general fund--state for state employee and K-12 employee health benefits, establishing a new employer funding rate of $600.85 per employee per month for both groups, up from $578.84 per state employee per month and $570.74 per K-12 employee per month. Average monthly state employee contributions are reduced from $105.89 to $65.00.