Read first time 01/27/09.   Referred to Committee on Ways & Means.

     AN ACT Relating to access to catastrophic disability medical insurance under plan 2 of the law enforcement officers' and firefighters' retirement system; amending RCW 41.05.080 and 41.05.195; adding a new section to chapter 41.26 RCW; providing an expiration date; and declaring an emergency.

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

Sec. 1   RCW 41.05.080 and 2007 c 114 s 6 are each amended to read as follows:
     (1) Under the qualifications, terms, conditions, and benefits set by the board:
     (a) Retired or disabled state employees, retired or disabled school employees, retired or disabled employees of county, municipal, or other political subdivisions, or retired or disabled employees of tribal governments covered by this chapter may continue their participation in insurance plans and contracts after retirement or disablement;
     (b) Separated employees may continue their participation in insurance plans and contracts if participation is selected immediately upon separation from employment;
     (c) Surviving spouses and dependent children of emergency service personnel killed in the line of duty and surviving spouses and dependent children of law enforcement officers and firefighters who are totally disabled in the line of duty and receiving a retirement allowance as provided under RCW 41.26.470(8) may participate in health insurance ((plans and contracts));
     (d) Law enforcement officers and firefighters who are totally disabled in the line of duty and receiving a retirement allowance as provided under RCW 41.26.470(8) and their dependents may participate in health insurance.
     (2) Rates charged surviving spouses of emergency service personnel killed in the line of duty, law enforcement officers and firefighters who are totally disabled in the line of duty and receiving a retirement allowance as provided under RCW 41.26.470(8) and their dependents, retired or disabled employees, separated employees, spouses, or dependent children who are not eligible for parts A and B of medicare shall be based on the experience of the community-rated risk pool established under RCW 41.05.022.
     (3) Rates charged to surviving spouses of emergency service personnel killed in the line of duty, law enforcement officers and firefighters who are totally disabled in the line of duty and receiving a retirement allowance as provided under RCW 41.26.470(8) and their dependents, retired or disabled employees, separated employees, spouses, or children who are eligible for parts A and B of medicare shall be calculated from a separate experience risk pool comprised only of individuals eligible for parts A and B of medicare; however, the premiums charged to medicare-eligible retirees and disabled employees shall be reduced by the amount of the subsidy provided under RCW 41.05.085.
     (4) As a benefit of the law enforcement officers' and firefighters' retirement system plan 2, in addition to the rates charged to law enforcement officers and firefighters who are totally disabled in the line of duty and receiving a retirement allowance as provided under RCW 41.26.470(8) pursuant to subsection (3) of this section, the authority shall actuarially determine and charge an amount to the law enforcement officers' and firefighters' retirement system plan 2 to fully offset the increase in the cost of the community-rated risk pool established under RCW 41.05.022 resulting from the participation of these totally disabled members of the law enforcement officers' and firefighters' retirement system plan 2. The number of totally disabled members assumed by the authority in the calculation of cost to the community-rated risk pool for a plan year may be no greater than the actual number of members receiving the total disability allowance under RCW 41.26.470(8) as of the date of actuarial valuation of the community-rated risk pool for the upcoming plan year, plus the average annual change in the number of disability allowances provided under RCW 41.26.470(8) during the prior plan year.
     (5) Surviving spouses and dependent children of emergency service personnel killed in the line of duty, law enforcement officers and firefighters who are totally disabled in the line of duty and receiving a retirement allowance as provided under RCW 41.26.470(8) and their dependents, and retired or disabled and separated employees shall be responsible for payment of premium rates developed by the authority which shall include the cost to the authority of providing health insurance ((coverage)) including any amounts necessary for reserves and administration in accordance with this chapter. These self pay rates will be established based on a separate rate for the employee, the spouse, and the children.
     (((5))) (6) The term "retired state employees" for the purpose of this section shall include but not be limited to members of the legislature whether voluntarily or involuntarily leaving state office.

Sec. 2   RCW 41.05.195 and 2007 c 114 s 7 are each amended to read as follows:
     Notwithstanding any other provisions of this chapter or rules or procedures adopted by the authority, the authority shall make available to retired or disabled employees who are enrolled in parts A and B of medicare one or more medicare supplemental insurance policies that conform to the requirements of chapter 48.66 RCW. The policies shall be chosen in consultation with the public employees' benefits board. These policies shall be made available to retired or disabled state employees; retired or disabled school district employees; retired employees of county, municipal, or other political subdivisions or retired employees of tribal governments eligible for coverage available under the authority; ((or)) surviving spouses of emergency service personnel killed in the line of duty; or law enforcement officers and firefighters who are totally disabled in the line of duty and receiving a retirement allowance as provided under RCW 41.26.470(8) or their dependents.

NEW SECTION.  Sec. 3   A new section is added to chapter 41.26 RCW to read as follows:
     The participation of totally disabled members of the law enforcement officers' and firefighters' retirement system plan 2 in the health insurance plans administered by the health care authority is a benefit of the law enforcement officers' and firefighters' retirement system plan 2. The increased health benefit costs charged by the health care authority pursuant to RCW 41.05.080(4) to offset the impact on the community-rated risk pool resulting from participation of members of the law enforcement officers' and firefighters' plan 2 members who are totally disabled in the line of duty, spouses, and dependents shall be charged first to the law enforcement officers' and firefighters' retirement system plan 2 fund.

NEW SECTION.  Sec. 4   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 takes effect immediately.

NEW SECTION.  Sec. 5   This act expires July 1, 2011.