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SB0142A -1- SB 142
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SENATE BILL NO. 142
IN THE LEGISLATURE OF THE STATE OF ALASKA
THIRTY-FOURTH LEGISLATURE - FIRST SESSION
BY SENATOR GIESSEL BY REQUEST
Introduced: 3/24/25
Referred: Labor and Commerce, Finance
A BILL
FOR AN ACT ENTITLED
"An Act relating to municipal and state group health insurance plans and policies, 1
including self-insured plans and policies, and the administrati on and management of 2
pharmacy benefits; and providing for an effective date." 3
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 4
* Section 1. AS 29.10.200 is amended by adding a new paragraph to read: 5
(68) AS 29.20.420 (health care insurance plans). 6
* Sec. 2. AS 29.20 is amended by adding a new section to article 5 to read: 7
Sec. 29.20.420. Health care insurance plans. (a) Except as provided in (c) of 8
this section, a municipality that offers a group health care in surance plan covering 9
municipal employees, including b y means of self-insurance, and the plan's pharmacy 10
benefits manager are subject to AS 21.27.901 - 21.27.975 and AS 21.36.520. 11
(b) This section applies to home rule and general law municipalities. 12
(c) This section does not apply to a health care insurance pla n subject to the 13
provisions of 29 U.S.C. 1001 - 1191 (Employee Retirement Income Security Act of 14
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1974). 1
(d) In this section, "health care insurance plan" has the mean ing given in 2
AS 21.54.500. 3
* Sec. 3. AS 39.30.090(a) is amended to read: 4
(a) The Department of Administration may obtain a policy or policies of group 5
insurance covering state employees, persons entitled to coverag e under AS 14.25.168, 6
14.25.480, AS 22.25.090, AS 39.35.535, 39.35.880, or former AS 39.37.145, 7
employees of other participating governmental units, or persons entitled to coverage 8
under AS 23.15.136, subject to the following conditions: 9
(1) a group insurance policy shall provide one or more of the following 10
benefits: life insurance, accidental death and dismemberment in surance, weekly 11
indemnity insurance, hospital ex pense insurance, surgical expen se insurance, dental 12
expense insurance, audiovisual insurance, or other medical care insurance; 13
(2) each eligible employee of the state, the spouse and the un married 14
children chiefly dependent on the eligible employee for support , and each eligible 15
employee of another participatin g governmental unit shall be co vered by the group 16
policy, unless exempt under regulations adopted by the commissi oner of 17
administration; 18
(3) a governmental unit may participate under a group policy if 19
(A) its governing body adopts a resolution authorizing 20
participation and payment of required premiums; 21
(B) a certified copy of the resolution is filed with the 22
Department of Administration; and 23
(C) the commissioner of ad ministration approves the 24
participation in writing; 25
(4) in procuring a policy of group health or group life insura nce as 26
provided under this section or ex cess loss insurance as provide d in AS 39.30.091, the 27
Department of Administration shall comply with the dual choice requirements of 28
AS 21.86.310, and shall obtain the insurance policy from an ins urer authorized to 29
transact business in the state under AS 21.09, a hospital or medical service corporation 30
authorized to transact busin ess in this state under AS 21.87, o r a health maintenance 31
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organization authorized to ope rate in this state under AS 21.86 ; an excess loss 1
insurance policy may be obtaine d from a life or health insurer authorized to transact 2
business in this state under AS 21.09 or from a hospital or med ical service corporation 3
authorized to transact business in this state under AS 21.87; 4
(5) the Department of Administration shall make available bid 5
specifications for desired insurance benefits or for administration of benefit claims and 6
payments to (A) all insurance carriers authorized to transact b usiness in this state 7
under AS 21.09 and all hospital or m edical service corporations authorized to transact 8
business under AS 21.87 who are qualif ied to provide the desire d benefits; and (B) 9
insurance carriers authorized to transact business in this stat e under AS 21.09, hospital 10
or medical service corporations a uthorized to transact business under AS 21.87, and 11
third-party administrators licensed to transact business in thi s state and qualified to 12
provide administrative services; the specifications shall be made available at least once 13
every five years; the lowest responsible bid submitted by an in surance carrier, hospital 14
or medical service corporation, or third-party administrator wi th adequate servicing 15
facilities shall govern selection of a carrier, hospital or med ical service corporation, or 16
third-party administrator under this section or the selection of an insurance carrier or a 17
hospital or medical service corporation to provide excess loss insurance as provided in 18
AS 39.30.091; 19
(6) if the aggregate of dividends payable under the group insu rance 20
policy exceeds the governmental unit's share of the premium, th e excess shall be 21
applied by the governmental unit for the sole benefit of the employees; 22
(7) a person receiving benefits under AS 14.25.110, AS 22.25, 23
AS 39.35, or former AS 39.37 may con tinue the life insurance co verage that was in 24
effect under this section at the time of termination of employm ent with the state or 25
participating governmental unit; 26
(8) a person electing to have insurance under (7) of this subs ection 27
shall pay the cost of this insurance; 28
(9) for each permanent part-time employee electing coverage un der 29
this section, the state shall contribute one-half the state contribution rate for permanent 30
full-time state employees, and the permanent part-time employee shall contribute the 31
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other one-half; 1
(10) a person receiving be nefits under AS 14.25, AS 22.25, AS 39.35, 2
or former AS 39.37 may obtain auditory, visual, and dental insu rance for that person 3
and eligible dependents under th is section; the level of covera ge for persons over 65 4
shall be the same as that available before reaching age 65 exce pt that the benefits 5
payable shall be supplemental to any benefits provided under th e federal old age, 6
survivors, and disability insurance program; a person electing to have insurance under 7
this paragraph shall pay the cost of the insurance; the commiss ioner of administration 8
shall adopt regulations implementing this paragraph; 9
(11) a person receiving be nefits under AS 14.25, AS 22.25, AS 39.35, 10
or former AS 39.37 may obtain long -term care insurance for that person and eligible 11
dependents under this section; a p erson who elects insurance un der this paragraph 12
shall pay the cost of the insurance premium; the commissioner o f administration shall 13
adopt regulations to implement this paragraph; 14
(12) each licensee holding a current operating agreement for a vending 15
facility under AS 23.15.010 - 23.15.210 shall be covered by the group policy that 16
applies to governmental units other than the state; 17
(13) a group health insurance po licy covering employees of a 18
participating governmental unit, e xcept for a group health insu rance policy 19
subject to the provisions of 29 U.S.C. 1001 - 1191 (Employee Re tirement Income 20
Security Act of 1974), is subject to AS 21.27.901 - 21.27.975 a nd AS 21.36.520, 21
including requirements relating to administration and managemen t of pharmacy 22
benefits under the policy. 23
* Sec. 4. AS 39.30.091 is amended to read: 24
Sec. 39.30.091. Authorization for self-insurance and excess los s insurance. 25
Notwithstanding AS 21.86.310 or AS 39.30.090, the Department of Administration 26
may provide, by means of self-insurance, one or more of the ben efits listed in 27
AS 39.30.090(a)(1) for state employees eligible for the benefit s by law or under a 28
collective bargaining agreement and for persons receiving benef its under AS 14.25, 29
AS 22.25, AS 39.35, or former AS 39.37, and their dependents. T he department shall 30
procure any necessary excess loss insurance under AS 39.30.090. Except for a health 31
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insurance plan subj ect to the provisions of 29 U.S.C. 1001 - 11 91 (Employee 1
Retirement Income Security Act of 1974), a self-insured group h ealth insurance 2
plan covering active state employees provided under this sectio n and the plan's 3
pharmacy benefits manager are subject to AS 21.27.901 - 21.27.9 75 and 4
AS 21.36.520, including requirements r elating to administration a n d 5
management of pharmacy benefits under the plan. 6
* Sec. 5. This Act takes effect January 1, 2026. 7