State Health Plan; extend repealer on authority of board to collect premium payments from participants in.

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To: Insurance
MISSISSIPPI LEGISLATURE REGULAR SESSION 2026

By: Senator(s) Michel

SENATE BILL NO. 2699

AN ACT TO AMEND SECTION 25-15-15, MISSISSIPPI CODE OF 1972, 1
TO EXTEND THE REPEALER ON THE AUTHORITY OF THE STATE AND SCHOOL 2
EMPLOYEES HEALTH INSURANCE MANAGEMENT BOARD TO COLLECT PREMIUM 3
PAYMENTS FROM PARTICIPANTS IN THE STATE AND SCHOOL EMPLOYEES LIFE 4
AND HEALTH INSURANCE PLAN; AND FOR RELATED PURPOSES. 5
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: 6
SECTION 1. Section 25-15-15, Mississippi Code of 1972, is 7
amended as follows: 8
25-15-15. (1) The board is authorized to determine the 9
manner in which premiums and contributions by the state agencies, 10
local school districts, colleges, universities, community/junior 11
colleges and public libraries shall be collected to provide the 12
self-insured health insurance program for employees as provided 13
under this article. The state shall provide fifty percent (50%) 14
of the cost of the above life insurance plan for all active 15
full-time employees. The state shall provide one hundred percent 16
(100%) of the cost of the health insurance plan for active 17
full-time employees initially employed before January 1, 2006, 18
except as otherwise provided in this section. For active 19
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full-time employees initially employed on or after January 1, 20
2006, the state shall provide one hundred percent (100%) of the 21
cost of a basic level of health insurance, except as otherwise 22
provided in this section, and the employees may pay additional 23
amounts to purchase additional benefits or levels of coverage 24
offered under the plan. The board, if determined to be necessary, 25
may assess active full-time employees a portion of the active 26
employee premium in an amount not to exceed Twenty Dollars 27
($20.00) per month, notwithstanding any language in this section 28
to the contrary. All active full-time employees shall be given 29
the opportunity to purchase coverage for their eligible dependents 30
with the premiums for such dependent coverage, as well as the 31
employee's fifty percent (50%) share for his life insurance 32
coverage, to be deductible from the employee's salary by the 33
agency, department or institution head, which deductions, together 34
with the fifty percent (50%) share of such life insurance premiums 35
of such employing agency, department or institution head from 36
funds appropriated to or authorized to be expended by the 37
employing agency, department or institution head, shall be 38
deposited directly into a depository bank or special fund in the 39
State Treasury, as determined by the board. These funds and 40
interest earned on these funds may be used for the disbursement of 41
claims and shall be exempt from the appropriation process. 42
(2) The state shall provide annually, by line item in the 43
Mississippi Library Commission appropriation bill, such funds to 44
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pay one hundred percent (100%) of the cost of health insurance 45
under the State and School Employees Health Insurance Plan, or any 46
lesser percentage of the cost that is not assessed to the 47
employees by the board, for full-time library staff members in 48
each public library in Mississippi initially employed before 49
January 1, 2006. For full-time library staff members initially 50
employed on or after January 1, 2006, the state shall provide one 51
hundred percent (100%) of the cost of a basic level of health 52
insurance under the State and School Employees Health Insurance 53
Plan, or any lesser percentage of the cost that is not assessed to 54
the employees by the board, and the employees may pay additional 55
amounts to purchase additional benefits or levels of coverage 56
offered under the plan. The commission shall allot to each public 57
library a sufficient amount of those funds appropriated to pay the 58
costs of insurance for eligible employees. Any funds so 59
appropriated by line item which are not expended during the fiscal 60
year for which such funds were appropriated shall be carried 61
forward for the same purposes during the next succeeding fiscal 62
year. If any premiums for the health insurance and/or late 63
charges and interest penalties are not paid by a public library in 64
a timely manner, as defined by the board, the Mississippi Library 65
Commission, upon notice by the board, shall immediately withhold 66
all subsequent disbursements of funds to that public library. 67
(3) The state shall annually provide one hundred percent 68
(100%) of the cost of the health insurance plan, or any lesser 69
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percentage of the cost that is not assessed to the employees by 70
the board, for public school district employees who work no less 71
than twenty (20) hours during each week and regular nonstudent 72
school bus drivers, if such employees and school bus drivers were 73
initially employed before January 1, 2006. For such employees and 74
school bus drivers initially employed on or after January 1, 2006, 75
the state shall provide one hundred percent (100%) of the cost of 76
a basic level of health insurance under the State and School 77
Employees Health Insurance Plan, or any lesser percentage of the 78
cost that is not assessed to the employees by the board, and the 79
employees may pay additional amounts to purchase additional 80
benefits or levels of coverage offered under the plan. Where 81
federal funding is allowable to defray, in full or in part, the 82
cost of participation in the program by district employees who 83
work no less than twenty (20) hours during the week and regular 84
nonstudent bus drivers, whose salaries are paid, in full or in 85
part, by federal funds, the allowance under this section shall be 86
reduced to the extent of such federal funding. Where the use of 87
federal funds is allowable but not available, it is the intent of 88
the Legislature that school districts contribute the cost of 89
participation for such employees from local funds, except that 90
parent fees for child nutrition programs shall not be increased to 91
cover such cost. 92
(4) The state shall provide annually, by line item in the 93
community/junior college appropriation bill, such funds to pay one 94
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hundred percent (100%) of the cost of the health insurance plan, 95
or any lesser percentage of the cost that is not assessed to the 96
employees by the board, for community/junior college district 97
employees initially employed before January 1, 2006, who work no 98
less than twenty (20) hours during each week. For such employees 99
initially employed on or after January 1, 2006, the state shall 100
provide one hundred percent (100%) of the cost of a basic level of 101
health insurance under the State and School Employees Health 102
Insurance Plan, or any lesser percentage of the cost that is not 103
assessed to the employees by the board, and the employees may pay 104
additional amounts to purchase additional benefits or levels of 105
coverage offered under the plan. 106
(5) When the use of federal funding is allowable to defray, 107
in full or in part, the cost of participation in the insurance 108
plan by community/junior college district employees who work no 109
less than twenty (20) hours during each week, whose salaries are 110
paid, in full or in part, by federal funds, the allowance under 111
this section shall be reduced to the extent of the federal 112
funding. Where the use of federal funds is allowable but not 113
available, it is the intent of the Legislature that 114
community/junior college districts contribute the cost of 115
participation for such employees from local funds. 116
(6) Any community/junior college district may contribute to 117
the cost of coverage for any district employee from local 118
community/junior college district funds, and any public school 119
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district may contribute to the cost of coverage for any district 120
employee from nonminimum program funds. Any part of the cost of 121
such coverage for participating employees of public school 122
districts and public community/junior college districts that is 123
not paid by the state shall be paid by the participating 124
employees, which shall be deducted from the salaries of the 125
employees in a manner determined by the board. 126
(7) Any funds appropriated for the cost of insurance by line 127
item in the community/junior colleges appropriation bill which are 128
not expended during the fiscal year for which such funds were 129
appropriated shall be carried forward for the same purposes during 130
the next succeeding fiscal year. 131
(8) The board may establish and enforce late charges and 132
interest penalties or other penalties for the purpose of requiring 133
the prompt payment of all premiums for life and health insurance 134
permitted under this chapter. All funds in excess of the amount 135
needed for disbursement of claims shall be deposited in a special 136
fund in the State Treasury to be known as the State and School 137
Employees Insurance Fund. The State Treasurer shall invest all 138
funds in the State and School Employees Insurance Fund and all 139
interest earned shall be credited to the State and School 140
Employees Insurance Fund. Such funds shall be placed with one or 141
more depositories of the state and invested on the first day such 142
funds are available for investment in certificates of deposit, 143
repurchase agreements or in United States Treasury bills or as 144
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otherwise authorized by law for the investment of Public 145
Employees' Retirement System funds, as long as such investment is 146
made from competitive offering and at the highest and best market 147
rate obtainable consistent with any available investment 148
alternatives; however, such investments shall not be made in 149
shares of stock, common or preferred, or in any other investments 150
which would mature more than one (1) year from the date of 151
investment. The board shall have the authority to draw from this 152
fund periodically such funds as are necessary to operate the 153
self-insurance plan or to pay to the insurance carrier the cost of 154
operation of this plan, it being the purpose to limit the amount 155
of participation by the state to fifty percent (50%) of the cost 156
of the life insurance program and not to limit the contracting for 157
additional benefits where the cost will be paid in full by the 158
employee. The state shall not share in the cost of coverage for 159
retired employees. 160
(9) The board shall also provide for the creation of an 161
Insurance Reserve Fund and funds therein shall be invested by the 162
State Treasurer with all interest earned credited to the State and 163
School Employees Insurance Fund. 164
(10) Any retired employee electing to purchase retired life 165
and health insurance will have the full cost of such insurance 166
deducted monthly from his State of Mississippi retirement plan 167
check or direct billed for the cost of the premium if the 168
retirement check is insufficient to pay for the premium. If the 169
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ST: State Health Plan; extend repealer on
authority of board to collect premium payments
from participants in.
board determines actuarially that the premium paid by the 170
participating retirees adversely affects the overall cost of the 171
plan to the state, then the board may impose a premium surcharge, 172
not to exceed fifteen percent (15%), upon such participating 173
retired employees who are under the age for Medicare eligibility 174
and who were initially employed before January 1, 2006. For 175
participating retired employees who are under the age for Medicare 176
eligibility and who were initially employed on or after January 1, 177
2006, the board may impose a premium surcharge in an amount the 178
board determines actuarially to cover the full cost of insurance. 179
(11) This section shall stand repealed on July 1, * * * 180
2030. 181
SECTION 2. This act shall take effect and be in force from 182
and after July 1, 2026. 183