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STATE OF OKLAHOMA
2nd Session of the 60th Legislature (2026)
SENATE BILL 1947 By: Bullard
AS INTRODUCED
An Act relating to Oklahoma Employees Insurance and
Benefits Act; amending 74 O.S. 2021, Sections 1308.3,
as amended by Section 1, Chapter 21, O.S.L. 2025, and
1370, as amended by Section 10, Chapter 245, O.S.L.
2024 (74 O.S. Supp. 2025, Sections 1308.3 and 1370),
which relate to basic health plan and flexible
benefit allowance; defining terms; authorizing opt
out for certain participants enrolled with certain
health care sharing ministry; requiring active
employees to receive certain funds in lieu of certain
flexible benefit amount; updating statutory language;
and providing an effective date.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 74 O.S. 2021, Section 1308.3, as
amended by Section 1, Chapter 21, O.S.L. 2025 (74 O.S. Supp. 2025,
Section 1308.3), is amended to read as follows:
Section 1308.3. A. As used in this section:
1. “Health care sharing ministry” (HCSM) means a not-for-profit
organization that is tax-exempt under Section 501(c)(3) of the
Internal Revenue Code of 1986, as amended, and:
a. limits its members to those who share a common
set of ethical or religious beliefs,
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b. facilitates sharing of medical expenses between
members in accordance with its ethical or
religious beliefs,
c. requires regular contributions from members with
no assumptions of risk or promise to pay for
medical expenses,
d. provides an electronic report at least quarterly
to members detailing the amount of needs shared
and contributions received,
e. conducts an annual audit which shall be performed
by an independent certified public accounting
firm in accordance with generally accepted
accounting principles and shall be made available
to the public upon request, and
f. provides a disclaimer stating that it is not an
insurance company and participation is voluntary;
and
2. “Qualified HCSM member” means any resident of this state who
has been an active member of an HCSM for at least one (1) month
during the applicable tax year.
B. Any active employee eligible to participate or who is a
participant may opt out of the state’s basic plan as outlined in
Sections 1370 and 1371 of this title, or may opt out of the health
and dental basic plan options only and retain the life and
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disability plan benefits, provided that the participant is currently
covered by a separate health insurance plan or will be covered by a
separate health insurance plan at or before the beginning of the
next plan year or is a qualified HCSM member or will be at or before
the beginning of the next plan year. Any active employee eligible
to participate or who is a participant opting out of coverage
pursuant to this section shall provide proof of the separate health
insurance plan or health care sharing ministry participation and
sign an affidavit attesting that the participant is currently
covered and does not require state-provided health insurance each
plan year. Any active employee opting out of the state’s basic plan
or the health and dental basic plan options pursuant to this section
due to coverage by a separate health insurance plan shall receive
One Hundred Fifty Dollars ($150.00) in lieu of the flexible benefit
amount the employee would be otherwise eligible to receive. Any
active employee who is a qualified HCSM member opting out of the
state’s basic plan or the health and dental basic plan options shall
receive the full flexible benefit amount the employee would be
otherwise eligible to receive. Any savings realized by the state as
a result of a participant opting out of health insurance plan
coverage shall be retained by the state.
SECTION 2. AMENDATORY 74 O.S. 2021, Section 1370, as
amended by Section 10, Chapter 245, O.S.L. 2024 (74 O.S. Supp. 2025,
Section 1370), is amended to read as follows:
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Section 1370. A. Subject to the requirement that a participant
must elect the default benefits, or the basic plan, or is a person
who has retired from a branch of the United States military and has
been provided with health care through a federal plan, to the extent
that it is consistent with federal law, or is an active employee who
is eligible to participate and who is a participant who has opted
out of the state’s basic plan according to the provisions of Section
1308.3 of this title, and provides proof of this coverage, flexible
benefit dollars may be used to purchase any of the benefits offered
by the Oklahoma Employees Insurance and Benefits Board under the
flexible benefits plan. A participant who has opted out of the
state’s basic plan and provided proof of other coverage as described
in this subsection shall receive One Hundred Fifty Dollars ($150.00)
an amount pursuant to Section 1308.3 of this title in lieu of the
flexible benefit monthly. A participant’s flexible benefit dollars
for a plan year shall consist of the sum of (1) flexible benefit
allowance credited to a participant by the participating employer,
and (2) pay conversion dollars elected by a participant.
B. Each participant shall be credited annually with a specified
amount as a flexible benefit allowance which shall be available for
the purchase of benefits. For participants on a biweekly payroll
system the disbursement of the flexible benefit allowance shall be
credited over twenty-four pay periods resulting in two pay periods
that do not reflect a credit. The amount of the flexible benefit
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allowance credited to each participant shall be communicated to him
or her prior to the enrollment period for each plan year.
C. Except as provided in subsection D of this section, for the
plan year beginning January 1, 2013, the benefit allowance shall not
be less than the Plan Year plan year 2012 benefit allowance amounts,
and each plan year thereafter, the amount of a participant’s benefit
allowance, which shall be the total amount the employer contributes
for the payment of insurance premiums or other benefits, shall be:
1. The greater of the amount of benefit which the participant
would have qualified for as of plan year 2021, or an amount equal to
the monthly premium of the HealthChoice High Option plan, the
average monthly premiums of the dental plans, the monthly premium of
the disability plan, and the monthly premium of the basic life
insurance plan offered to state employees or the amount determined
by the Council Oklahoma Employees Insurance and Benefits Board based
on a formula for determining a participant’s benefit credits
consistent with the requirements of 26 U.S.C., Section 125(g)(2) and
regulations thereunder;
2. The greater of the amount of benefit which the participant
would have qualified for as of plan year 2021 or an amount equal to
the monthly premium of the HealthChoice High Option plan, the
average monthly premiums of the dental plans, the monthly premium of
the disability plan, and the monthly premium of the basic life
insurance plan offered to state employees plus one of the additional
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amounts as follows for participants who elect to include one or more
dependents:
a. for a spouse, seventy-five percent (75%) of the
HealthChoice High Option plan, available for coverage
of a spouse,
b. for one child, seventy-five percent (75%) of the
HealthChoice High Option plan, for coverage of one
child,
c. for two or more children, seventy-five percent (75%)
of the HealthChoice High Option plan, for coverage of
two or more children,
d. for a spouse and one child, seventy-five percent (75%)
of the HealthChoice High Option plan, for coverage of
a spouse and one child, or
e. for a spouse and two or more children, seventy-five
percent (75%) of the HealthChoice High Option plan,
for coverage of a spouse and two or more children;
3. For the plan year beginning January 1, 2022, the amount of a
participant’s benefit allowance shall be increased by two percent
(2%) from the amount provided in the previous year;
4. For the plan year beginning January 1, 2023, the amount of a
participant’s benefit allowance shall be increased by two percent
(2%) from the amount provided in the previous year; or
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5. The greater of the amount of benefit which the participant
would have qualified for as of plan year 2023, or an amount equal to
the monthly premium of the HealthChoice High Option plan, the
average monthly premiums of the dental plans, the monthly premium of
the disability plan, and the monthly premium of the basic life
insurance plan offered to state employees plus one of the additional
amounts as follows for participants who elect to include one or more
dependents:
a. for a spouse, seventy-five percent (75%) of the
HealthChoice High Option plan, available for coverage
of a spouse,
b. for one child, seventy-five percent (75%) of the
HealthChoice High Option plan, for coverage of one
child,
c. for two or more children, seventy-five percent (75%)
of the HealthChoice High Option plan, for coverage of
two or more children,
d. for a spouse and one child, seventy-five percent (75%)
of the HealthChoice High Option plan, for coverage of
a spouse and one child, or
e. for a spouse and two or more children, seventy-five
percent (75%) of the HealthChoice High Option plan,
for coverage of a spouse and two or more children.
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D. To the extent that it is consistent with federal laws and
regulations, and in particular the regulations set forth by the
United States Secretary of Defense in 32 C.F.R., Section
199.8(d)(6), a benefit may be provided to an employee who is an
eligible TRICARE beneficiary whereby he or she may purchase a group
TRICARE Supplemental supplemental product under a qualifying
cafeteria plan consistent with the requirements of 26 U.S.C.,
Section 125, provided that:
1. The state, as employer, may not provide any payment for nor
receive any consideration or compensation for offering the benefit;
2. The employer’s only involvement is in providing the
administrative support for the benefit under the cafeteria plan; and
3. The employee’s participation in the plan is completely
voluntary.
The benefit allowance under paragraph 2 of subsection C of this
section of an employee whose plan participation includes a group
TRICARE Supplemental supplemental benefit shall not include any
allowance or portion thereof for such TRICARE Supplemental
supplemental benefit.
E. This section shall not prohibit payments for supplemental
health insurance coverage made pursuant to Section 1314.4 of this
title or payments for the cost of providing health insurance
coverage for dependents of employees of the Grand River Dam
Authority.
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F. If a participant desires to buy benefits whose sum total of
benefit prices is in excess of his or her flexible benefit
allowance, the participant may elect to use pay conversion dollars
to purchase such excess benefits. Pay conversion dollars may be
elected through a salary reduction agreement made pursuant to the
election procedures of Section 1371 of this title. The elected
amount shall be deducted from the participant’s compensation in
equal amounts each pay period, with the exception of participants on
a biweekly payroll system, where such deduction shall occur over
twenty-four pay periods over the plan year. On termination of
employment during a plan year, a participant shall have no
obligation to pay the participating employer any pay conversion
dollars allocated to the portion of the plan year after the
participant’s termination of employment.
G. If a participant elects benefits whose sum total of benefit
prices is less than his or her flexible benefit allowance, he or she
shall receive any excess flexible benefit allowance as taxable
compensation. Such taxable compensation will be paid in
substantially equal amounts each pay period, with the exception of
participants on a biweekly payroll system, where such deduction
shall occur over twenty-four pay periods over the plan year. On
termination during a plan year, a participant shall have no right to
receive any such taxable cash compensation allocated to the portion
of the plan year after the participant’s termination. Nothing
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herein shall affect a participant’s obligation to elect the minimum
benefits or to accept the default benefits of the plan with
corresponding reduction in the sum of his or her flexible benefit
allowance equal to the sum total benefit price of such minimum
benefits or default benefits.
SECTION 3. This act shall become effective November 1, 2026.
60-2-2345 CAD 1/15/2026 9:07:16 AM