5034-S.E AMH ALEX PRIN 437

ESSB 5034 - H AMD TO APP COMM AMD (H-2378.4/13) 403

By Representative Alexander

FAILED 04/12/2013

    On page 186, after line 13, insert the following:

    "NEW SECTION.  Sec. 723.  FOR THE OFFICE OF FINANCIAL MANAGEMENT-- ALLOCATIONS FOR K-12 SCHOOL EMPLOYEE HEALTH INSURANCE

General Fund--State Appropriation (FY 2014)......... ($45,100,000)

General Fund--State Appropriation (FY 2015)......... ($41,900,000)

           TOTAL APPROPRIATION....................... ($87,000,000)

    The appropriations in this section are subject to the following conditions and limitations:  The office of financial management, consistent with the provisions of section 504 of this act, shall reduce allocations to K-12 school districts and education service districts for insurance benefits for part-time employees consistent with the appropriations in this section.  By aligning part-time employee eligibility more closely with the federal affordable care act employer shared responsibility standards, more part-time school employees will be eligible for premium tax credits and subsidies available for health insurance purchased through the Washington health benefits exchange."

EFFECT:   Insurance allocations for part-time K-12 employees are reduced by making part-time employees eligible for health benefits at the same level as required by the employer shared responsibility requirements of the federal Affordable Care Act.  Some districts currently provide eligibility for employees that work less than these eligibility levels.  Beginning January 1, 2014, part-time employees who are not eligible for employer-provided health benefits will be eligible, depending on their household income, for federal premium credits and out-of-pocket subsidies provided through the Washington Health Benefit Exchange. $33.2 million of the savings from reducing insurance allocations for part-time K-12 employees are provided to school districts to reimburse part-time employees for Washington Health Benefit Exchange premium costs.

FISCAL IMPACT:

           Reduces General Fund - State by $87,000,000.

--- END ---