State and School Employees Life and Health Insurance Plan; delete repealer on statute governing premium payments.

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To: Insurance
MISSISSIPPI LEGISLATURE REGULAR SESSION 2026

By: Representative Ford (54th)

HOUSE BILL NO. 1002

AN ACT TO AMEND SECTION 25-15-15, MISSISSIPPI CODE OF 1972, 1
TO DELETE THE REPEALER ON THE STATUTE CREATING THE STATE AND 2
SCHOOL EMPLOYEES INSURANCE FUND IN THE STATE TREASURY AND 3
GOVERNING THE COLLECTION OF PREMIUMS UNDER THE STATE AND SCHOOL 4
EMPLOYEES LIFE AND HEALTH INSURANCE PLAN; AND FOR RELATED 5
PURPOSES. 6
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: 7
SECTION 1. Section 25-15-15, Mississippi Code of 1972, is 8
amended as follows: 9
25-15-15. (1) The board is authorized to determine the 10
manner in which premiums and contributions by the state agencies, 11
local school districts, colleges, universities, community * * * 12
and junior colleges and public libraries shall be collected to 13
provide the self-insured health insurance program for employees as 14
provided under this article. The state shall provide fifty 15
percent (50%) of the cost of the above life insurance plan for all 16
active full-time employees. The state shall provide one hundred 17
percent (100%) of the cost of the health insurance plan for active 18
full-time employees initially employed before January 1, 2006, 19
except as otherwise provided in this section. For active 20
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full-time employees initially employed on or after January 1, 21
2006, the state shall provide one hundred percent (100%) of the 22
cost of a basic level of health insurance, except as otherwise 23
provided in this section, and the employees may pay additional 24
amounts to purchase additional benefits or levels of coverage 25
offered under the plan. The board, if determined to be necessary, 26
may assess active full-time employees a portion of the active 27
employee premium in an amount not to exceed Twenty Dollars 28
($20.00) per month, notwithstanding any language in this section 29
to the contrary. All active full-time employees shall be given 30
the opportunity to purchase coverage for their eligible dependents 31
with the premiums for such dependent coverage, as well as the 32
employee's fifty percent (50%) share for his life insurance 33
coverage, to be deductible from the employee's salary by the 34
agency, department or institution head, which deductions, together 35
with the fifty percent (50%) share of such life insurance premiums 36
of such employing agency, department or institution head from 37
funds appropriated to or authorized to be expended by the 38
employing agency, department or institution head, shall be 39
deposited directly into a depository bank or special fund in the 40
State Treasury, as determined by the board. These funds and 41
interest earned on these funds may be used for the disbursement of 42
claims and shall be exempt from the appropriation process. 43
(2) The state shall provide annually, by line item in the 44
Mississippi Library Commission appropriation bill, such funds to 45
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pay one hundred percent (100%) of the cost of health insurance 46
under the State and School Employees Health Insurance Plan, or any 47
lesser percentage of the cost that is not assessed to the 48
employees by the board, for full-time library staff members in 49
each public library in Mississippi initially employed before 50
January 1, 2006. For full-time library staff members initially 51
employed on or after January 1, 2006, the state shall provide one 52
hundred percent (100%) of the cost of a basic level of health 53
insurance under the State and School Employees Health Insurance 54
Plan, or any lesser percentage of the cost that is not assessed to 55
the employees by the board, and the employees may pay additional 56
amounts to purchase additional benefits or levels of coverage 57
offered under the plan. The commission shall allot to each public 58
library a sufficient amount of those funds appropriated to pay the 59
costs of insurance for eligible employees. Any funds so 60
appropriated by line item which are not expended during the fiscal 61
year for which such funds were appropriated shall be carried 62
forward for the same purposes during the next succeeding fiscal 63
year. If any premiums for the health insurance and/or late 64
charges and interest penalties are not paid by a public library in 65
a timely manner, as defined by the board, the Mississippi Library 66
Commission, upon notice by the board, shall immediately withhold 67
all subsequent disbursements of funds to that public library. 68
(3) The state shall annually provide one hundred percent 69
(100%) of the cost of the health insurance plan, or any lesser 70
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percentage of the cost that is not assessed to the employees by 71
the board, for public school district employees who work no less 72
than twenty (20) hours during each week and regular nonstudent 73
school bus drivers, if such employees and school bus drivers were 74
initially employed before January 1, 2006. For such employees and 75
school bus drivers initially employed on or after January 1, 2006, 76
the state shall provide one hundred percent (100%) of the cost of 77
a basic level of health insurance under the State and School 78
Employees Health Insurance Plan, or any lesser percentage of the 79
cost that is not assessed to the employees by the board, and the 80
employees may pay additional amounts to purchase additional 81
benefits or levels of coverage offered under the plan. Where 82
federal funding is allowable to defray, in full or in part, the 83
cost of participation in the program by district employees who 84
work no less than twenty (20) hours during the week and regular 85
nonstudent bus drivers, whose salaries are paid, in full or in 86
part, by federal funds, the allowance under this section shall be 87
reduced to the extent of such federal funding. Where the use of 88
federal funds is allowable but not available, it is the intent of 89
the Legislature that school districts contribute the cost of 90
participation for such employees from local funds, except that 91
parent fees for child nutrition programs shall not be increased to 92
cover such cost. 93
(4) The state shall provide annually, by line item in the 94
community * * * and junior college appropriation bill, such funds 95
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to pay one hundred percent (100%) of the cost of the health 96
insurance plan, or any lesser percentage of the cost that is not 97
assessed to the employees by the board, for community * * * and 98
junior college district employees initially employed before 99
January 1, 2006, who work no less than twenty (20) hours during 100
each week. For such employees initially employed on or after 101
January 1, 2006, the state shall provide one hundred percent 102
(100%) of the cost of a basic level of health insurance under the 103
State and School Employees Health Insurance Plan, or any lesser 104
percentage of the cost that is not assessed to the employees by 105
the board, and the employees may pay additional amounts to 106
purchase additional benefits or levels of coverage offered under 107
the plan. 108
(5) When the use of federal funding is allowable to defray, 109
in full or in part, the cost of participation in the insurance 110
plan by community * * * and junior college district employees who 111
work no less than twenty (20) hours during each week, whose 112
salaries are paid, in full or in part, by federal funds, the 113
allowance under this section shall be reduced to the extent of the 114
federal funding. Where the use of federal funds is allowable but 115
not available, it is the intent of the Legislature that 116
community * * * and junior college districts contribute the cost 117
of participation for such employees from local funds. 118
(6) Any community * * * or junior college district may 119
contribute to the cost of coverage for any district employee from 120
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local community * * * or junior college district funds, and any 121
public school district may contribute to the cost of coverage for 122
any district employee from * * * funds other than total funding 123
formula funds. Any part of the cost of such coverage for 124
participating employees of public school districts and public 125
community * * * and junior college districts that is not paid by 126
the state shall be paid by the participating employees, which 127
shall be deducted from the salaries of the employees in a manner 128
determined by the board. 129
(7) Any funds appropriated for the cost of insurance by line 130
item in the community * * * and junior colleges appropriation bill 131
which are not expended during the fiscal year for which such funds 132
were appropriated shall be carried forward for the same purposes 133
during the next succeeding fiscal year. 134
(8) The board may establish and enforce late charges and 135
interest penalties or other penalties for the purpose of requiring 136
the prompt payment of all premiums for life and health insurance 137
permitted under this chapter. All funds in excess of the amount 138
needed for disbursement of claims shall be deposited in a special 139
fund in the State Treasury to be known as the State and School 140
Employees Insurance Fund. The State Treasurer shall invest all 141
funds in the State and School Employees Insurance Fund and all 142
interest earned shall be credited to the State and School 143
Employees Insurance Fund. Such funds shall be placed with one or 144
more depositories of the state and invested on the first day such 145
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funds are available for investment in certificates of deposit, 146
repurchase agreements or in United States Treasury bills or as 147
otherwise authorized by law for the investment of Public 148
Employees' Retirement System funds, as long as such investment is 149
made from competitive offering and at the highest and best market 150
rate obtainable consistent with any available investment 151
alternatives; however, such investments shall not be made in 152
shares of stock, common or preferred, or in any other investments 153
which would mature more than one (1) year from the date of 154
investment. The board shall have the authority to draw from this 155
fund periodically such funds as are necessary to operate the 156
self-insurance plan or to pay to the insurance carrier the cost of 157
operation of this plan, it being the purpose to limit the amount 158
of participation by the state to fifty percent (50%) of the cost 159
of the life insurance program and not to limit the contracting for 160
additional benefits where the cost will be paid in full by the 161
employee. The state shall not share in the cost of coverage for 162
retired employees. 163
(9) The board shall also provide for the creation of an 164
Insurance Reserve Fund, and funds therein shall be invested by the 165
State Treasurer with all interest earned credited to the State and 166
School Employees Insurance Fund. 167
(10) Any retired employee electing to purchase retired life 168
and health insurance will have the full cost of such insurance 169
deducted monthly from his State of Mississippi retirement plan 170
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ST: State and School Employees Life and Health
Insurance Plan; delete repealer on statute
governing premium payments.
check or direct billed for the cost of the premium if the 171
retirement check is insufficient to pay for the premium. If the 172
board determines actuarially that the premium paid by the 173
participating retirees adversely affects the overall cost of the 174
plan to the state, then the board may impose a premium surcharge, 175
not to exceed fifteen percent (15%), upon such participating 176
retired employees who are under the age for Medicare eligibility 177
and who were initially employed before January 1, 2006. For 178
participating retired employees who are under the age for Medicare 179
eligibility and who were initially employed on or after January 1, 180
2006, the board may impose a premium surcharge in an amount the 181
board determines actuarially to cover the full cost of insurance. 182
* * * 183
SECTION 2. This act shall take effect and be in force from 184
and after July 1, 2026. 185