Brief Description: Providing for individual health insurance.

Sponsors: Representative Cody.

Hearing Date: 1/13/04

Staff: Dave Knutson (786-7146).

Background:

In 2002, the Legislature enacted legislation requiring political subdivisions to offer retirees and disabled employees access to group health insurance coverage. The legislation took effect on January 1, 2003, but political subdivisions were allowed up to one year from this date to come into compliance. The legislation established a mandate for the political subdivision to offer access to health coverage, but did not require health carriers to offer such coverage. Following the passage of the legislation in 2002, health carriers have declined to offer group policies for public retirees and disabled employees, and political subdivisions have not been able to offer any alternatives to their retirees or disabled employees.

Summary of Bill:

The requirement that political subdivisions offer access to group health insurance for their retirees and disabled employees is repealed, and replaced with a requirement that political subdivisions assist their retirees and disabled employees in applying for individual health benefit plans. The Office of the Insurance Commissioner and carriers that offer individual health benefit plans will help political subdivisions meet this obligation by developing standardized information on the availability and cost of individual health benefit plans, application packages, and health benefit fairs.

Appropriation: None.

Fiscal Note: Not requested.

Effective Date: The bill contains an emergency clause and takes effect immediately.