Z-1713               _______________________________________________

                                                   SENATE BILL NO. 6885

                        _______________________________________________

State of Washington                               51st Legislature                              1990 Regular Session

By Senators Newhouse, Gaspard and Rasmussen; by request of Office of Financial Management

Read first time 2/2/90 and referred to Committee on  Ways & Means.

AN ACT Relating to insurance plans for retired or disabled employees of school districts and educational service districts; and adding a new section to chapter 41.05 RCW.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION. Sec. 1.  A new section is added to chapter 41.05 RCW to read as follows:

          Retired or disabled employees of any school district or educational service district, not otherwise participating in insurance plans offered by the board, may participate in insurance plans offered to such individuals by the board, under the qualifications, terms, conditions, and benefits set by the board.  The premium rates charged such individuals shall be developed from the separate experience pool of such retired or disabled persons.  The total premiums due from such individuals shall be reduced by the amount remitted by school districts and educational service districts to the health care authority for retiree benefits, less administrative costs.  The retired or disabled person shall bear the full cost of the resulting premium rates.  Premium rates shall be established based on a separate rate for the retired or disabled employee, the spouse, and the children.

          Premium rates for individuals who are eligible for and who elect to apply for medicare shall be actuarially reduced to reflect the value of part A and part B of medicare.  If changes are made to part A or B of the medicare program, premium rates for the individuals shall be actuarially adjusted to account for the changes, and shall take effect at the same time as the changes to medicare.

          Any state funds allocated for the benefit of district retirees that may be transmitted to the board shall be held separate and expended only to reduce the premium rates charged such individuals or for the necessary administrative costs directly associated with their participation in plans offered by the board.