State and School Employees Life and Health Insurance Plan; revise to require state to provide certain for dependents.

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To: Insurance;
Appropriations A
MISSISSIPPI LEGISLATURE REGULAR SESSION 2026

By: Representative McCarty

HOUSE BILL NO. 1208

AN ACT TO AMEND SECTION 25-15-15, MISSISSIPPI CODE OF 1972, 1
TO REVISE THE STATE AND SCHOOL EMPLOYEES LIFE AND HEALTH INSURANCE 2
PLAN TO REQUIRE THE STATE TO PROVIDE FIFTY PERCENT OF THE COST OF 3
THE HEALTH INSURANCE PLAN FOR THE ELIGIBLE DEPENDENTS OF FULL-TIME 4
EMPLOYEES; TO EXTEND THE REPEALER ON SECTION 25-15-15, MISSISSIPPI 5
CODE OF 1972; AND FOR RELATED 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/junior 12
colleges and public libraries shall be collected to provide the 13
self-insured health insurance program for employees as provided 14
under this article. The state shall provide fifty percent (50%) 15
of the cost of the above life insurance plan for all active 16
full-time employees. The state shall provide one hundred percent 17
(100%) of the cost of the health insurance plan for coverage of 18
active full-time employees initially employed before January 1, 19
2006, and fifty percent (50%) of the cost of the health insurance 20
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plan for coverage of their eligible dependents, except as 21
otherwise provided in this section. For active full-time 22
employees initially employed on or after January 1, 2006, the 23
state shall provide one hundred percent (100%) of the cost of a 24
basic level of health insurance for coverage of the employee and 25
fifty percent (50%) of the cost of the health insurance plan for 26
coverage of their eligible dependents, except as otherwise 27
provided in this section, and the employees may pay additional 28
amounts to purchase additional benefits or levels of coverage 29
offered under the plan. The board, if determined to be necessary, 30
may assess active full-time employees a portion of the active 31
employee premium in an amount not to exceed Twenty Dollars 32
($20.00) per month, notwithstanding any language in this section 33
to the contrary. All active full-time employees shall be given 34
the opportunity to purchase the employee's fifty percent (50%) 35
share of coverage for their eligible dependents with the premiums 36
for such dependent coverage, as well as the employee's fifty 37
percent (50%) share for his life insurance coverage, to be 38
deductible from the employee's salary by the agency, department or 39
institution head, which deductions, together with the fifty 40
percent (50%) share of such coverage of their eligible dependents 41
and fifty percent (50%) share of such life insurance premiums of 42
such employing agency, department or institution head from funds 43
appropriated to or authorized to be expended by the employing 44
agency, department or institution head, shall be deposited 45
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directly into a depository bank or special fund in the State 46
Treasury, as determined by the board. These funds and interest 47
earned on these funds may be used for the disbursement of claims 48
and shall be exempt from the appropriation process. 49
(2) The state shall provide annually, by line item in the 50
Mississippi Library Commission appropriation bill, such funds to 51
pay one hundred percent (100%) of the cost of health insurance 52
under the State and School Employees Health Insurance Plan, or any 53
lesser percentage of the cost that is not assessed to the 54
employees by the board, for full-time library staff members in 55
each public library in Mississippi initially employed before 56
January 1, 2006. For full-time library staff members initially 57
employed on or after January 1, 2006, the state shall provide one 58
hundred percent (100%) of the cost of a basic level of health 59
insurance under the State and School Employees Health Insurance 60
Plan, or any lesser percentage of the cost that is not assessed to 61
the employees by the board, and the employees may pay additional 62
amounts to purchase additional benefits or levels of coverage 63
offered under the plan. The commission shall allot to each public 64
library a sufficient amount of those funds appropriated to pay the 65
costs of insurance for eligible employees. Any funds so 66
appropriated by line item which are not expended during the fiscal 67
year for which such funds were appropriated shall be carried 68
forward for the same purposes during the next succeeding fiscal 69
year. If any premiums for the health insurance and/or late 70
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charges and interest penalties are not paid by a public library in 71
a timely manner, as defined by the board, the Mississippi Library 72
Commission, upon notice by the board, shall immediately withhold 73
all subsequent disbursements of funds to that public library. 74
(3) The state shall annually provide one hundred percent 75
(100%) of the cost of the health insurance plan, or any lesser 76
percentage of the cost that is not assessed to the employees by 77
the board, for public school district employees who work no less 78
than twenty (20) hours during each week and regular nonstudent 79
school bus drivers, if such employees and school bus drivers were 80
initially employed before January 1, 2006. For such employees and 81
school bus drivers initially employed on or after January 1, 2006, 82
the state shall provide one hundred percent (100%) of the cost of 83
a basic level of health insurance under the State and School 84
Employees Health Insurance Plan, or any lesser percentage of the 85
cost that is not assessed to the employees by the board, and the 86
employees may pay additional amounts to purchase additional 87
benefits or levels of coverage offered under the plan. Where 88
federal funding is allowable to defray, in full or in part, the 89
cost of participation in the program by district employees who 90
work no less than twenty (20) hours during the week and regular 91
nonstudent bus drivers, whose salaries are paid, in full or in 92
part, by federal funds, the allowance under this section shall be 93
reduced to the extent of such federal funding. Where the use of 94
federal funds is allowable but not available, it is the intent of 95
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the Legislature that school districts contribute the cost of 96
participation for such employees from local funds, except that 97
parent fees for child nutrition programs shall not be increased to 98
cover such cost. 99
(4) The state shall provide annually, by line item in the 100
community/junior college appropriation bill, such funds to pay one 101
hundred percent (100%) of the cost of the health insurance plan, 102
or any lesser percentage of the cost that is not assessed to the 103
employees by the board, for community/junior college district 104
employees initially employed before January 1, 2006, who work no 105
less than twenty (20) hours during each week. For such employees 106
initially employed on or after January 1, 2006, the state shall 107
provide one hundred percent (100%) of the cost of a basic level of 108
health insurance under the State and School Employees Health 109
Insurance Plan, or any lesser percentage of the cost that is not 110
assessed to the employees by the board, and the employees may pay 111
additional amounts to purchase additional benefits or levels of 112
coverage offered under the plan. 113
(5) When the use of federal funding is allowable to defray, 114
in full or in part, the cost of participation in the insurance 115
plan by community/junior college district employees who work no 116
less than twenty (20) hours during each week, whose salaries are 117
paid, in full or in part, by federal funds, the allowance under 118
this section shall be reduced to the extent of the federal 119
funding. Where the use of federal funds is allowable but not 120
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available, it is the intent of the Legislature that 121
community/junior college districts contribute the cost of 122
participation for such employees from local funds. 123
(6) Any community/junior college district may contribute to 124
the cost of coverage for any district employee from local 125
community/junior college district funds, and any public school 126
district may contribute to the cost of coverage for any district 127
employee from nonminimum program funds. Any part of the cost of 128
such coverage for participating employees of public school 129
districts and public community/junior college districts that is 130
not paid by the state shall be paid by the participating 131
employees, which shall be deducted from the salaries of the 132
employees in a manner determined by the board. 133
(7) Any funds appropriated for the cost of insurance by line 134
item in the community/junior colleges appropriation bill which are 135
not expended during the fiscal year for which such funds were 136
appropriated shall be carried forward for the same purposes during 137
the next succeeding fiscal year. 138
(8) The board may establish and enforce late charges and 139
interest penalties or other penalties for the purpose of requiring 140
the prompt payment of all premiums for life and health insurance 141
permitted under this chapter. All funds in excess of the amount 142
needed for disbursement of claims shall be deposited in a special 143
fund in the State Treasury to be known as the State and School 144
Employees Insurance Fund. The State Treasurer shall invest all 145
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funds in the State and School Employees Insurance Fund and all 146
interest earned shall be credited to the State and School 147
Employees Insurance Fund. Such funds shall be placed with one or 148
more depositories of the state and invested on the first day such 149
funds are available for investment in certificates of deposit, 150
repurchase agreements or in United States Treasury bills or as 151
otherwise authorized by law for the investment of Public 152
Employees' Retirement System funds, as long as such investment is 153
made from competitive offering and at the highest and best market 154
rate obtainable consistent with any available investment 155
alternatives; however, such investments shall not be made in 156
shares of stock, common or preferred, or in any other investments 157
which would mature more than one (1) year from the date of 158
investment. The board shall have the authority to draw from this 159
fund periodically such funds as are necessary to operate the 160
self-insurance plan or to pay to the insurance carrier the cost of 161
operation of this plan, it being the purpose to limit the amount 162
of participation by the state to fifty percent (50%) of the cost 163
of the life insurance program and not to limit the contracting for 164
additional benefits where the cost will be paid in full by the 165
employee. The state shall not share in the cost of coverage for 166
retired employees. 167
(9) The board shall also provide for the creation of an 168
Insurance Reserve Fund and funds therein shall be invested by the 169
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ST: State and School Employees Life and Health
Insurance Plan; revise to require state to
provide certain for dependents.
State Treasurer with all interest earned credited to the State and 170
School Employees Insurance Fund. 171
(10) Any retired employee electing to purchase retired life 172
and health insurance will have the full cost of such insurance 173
deducted monthly from his State of Mississippi retirement plan 174
check or direct billed for the cost of the premium if the 175
retirement check is insufficient to pay for the premium. If the 176
board determines actuarially that the premium paid by the 177
participating retirees adversely affects the overall cost of the 178
plan to the state, then the board may impose a premium surcharge, 179
not to exceed fifteen percent (15%), upon such participating 180
retired employees who are under the age for Medicare eligibility 181
and who were initially employed before January 1, 2006. For 182
participating retired employees who are under the age for Medicare 183
eligibility and who were initially employed on or after January 1, 184
2006, the board may impose a premium surcharge in an amount the 185
board determines actuarially to cover the full cost of insurance. 186
(11) This section shall stand repealed on July 1, * * * 187
2029. 188
SECTION 2. This act shall take effect and be in force from 189
and after July 1, 2026. 190