State employees' and officials' group insurance-membership.

WORKING DRAFT

ORIGINAL HOUSE
BILL

NO.
0040

ENROLLED ACT NO. 3, HOUSE OF REPRESENTATIVES

SIXTY-SECOND LEGISLATURE OF THE STATE OF WYOMING
2014 BUDGET SESSION

AN ACT relating to
administration of government; providing boards of cooperative educational services an option to participate in the state employees' and officials' group insurance plan;
modifying provisions relating to voluntary participation by nonstate employers;
specifying
participation and
contribution
requirements and
procedures and implementing payment mechanisms for participating boards;
and providing for an effective date.

Be It Enacted by the Legislature of the State of Wyoming:

Section 1.

W.S. 9
‑
3
‑
201(a), (e) and (f), 9
‑
3
‑
203(a)(iv), by creating

new

paragraph
s
(xiv), (xv
i
) and
by
renumbering (x
i
v) a
s
(x
vii
), 9
‑
3
‑
205(a)(xii) and
by creating a new paragraph
(xvi), 9
‑
3
‑
207(b) and by creating a new subsection (e), 9
‑
3
‑
210(a)
and by creating a new subsection (f)
, 9
‑
3
‑
211(a), 9
‑
3
‑
213(a), 21
‑
7
‑
301(b)
and
21
‑
20
‑
108(a)
by creating a new paragraph
(ix)

are amended to read:

9
‑
3
‑
201.

Group prepaid plans authorized; agreements with insurance companies authorized; limitation on authorized plans and companies; payroll deductions; self-insurance programs; optional school district participation in plan.

(a)

The state of Wyoming and its political subdivisions and school districts may obtain group prepaid plans or insurance for life, health, accident or hospitalization for their employees and for elected officials, except for members of the legislature, and enter into agreements with prepaid plans or insurance companies to provide this coverage.
On and after July 1, 2010,

I
nsurance coverage for school district

or board of cooperative educational services
employees meeting the
definition of employee under W.S. 9
‑
3
‑
203(a)(iv), shall, if elected by the district
or board

under subsection (e) of this section, be provided through the state employees' and officials' group insurance plan in accordance with W.S. 9
‑
3
‑
202 through 9
‑
3
‑
218.
On and after July 1, 2010,

I
nsurance coverage for retired school district

or board of cooperative educational services
employees shall, if elected by the
board or

district under subsection (e) of this section and if the retired employee was continuously covered under the
school

board's or
district's insurance plan prior to the election, be provided through the state employees' and officials' group insurance plan in accordance with W.S. 9
‑
3
‑
202 through 9
‑
3
‑
218. If a school district

or board of cooperative educational services
elects to cease participation in the group insurance plan pursuant to subsection (f) of this section, the election shall apply to retired employees of that
school

board or

district who are receiving coverage under this subsection.

(e)

Any school district

or board of cooperative educational services
may elect to participate in the state employees' and officials' group insurance plan by filing notification of election with the department of administration and information on a form and in a manner as prescribed by the department. Participation in the plan for any electing
board or

district shall commence not less than one hundred twenty (120) days following the date on which the
board or

district filed notification under this subsection and shall be identical to plans and coverage provided other enrollees under this act. The department shall notify the electing
board or

district of the date on which the
board or

district is eligible to participate in the state group insurance plan. An election by a
board or

district to participate in the state group insurance plan under this subsection is irrevocable for a period of five (5) years from the date on which plan participation
originally commenced.
In addition to all other remedies available to the department, if a district or board withdraw
s
from the state group insurance plan during the period of irrevocability, the department may assess against the withdrawing board or district
the
amount
by
which
all claims paid on behalf of employees of the board or district
exceed
s

total
premium
s
paid
by the board or district and their employees
.
A
board or
d
istrict may renew its initial participation in the state group insurance plan without interruption upon submitting notification of renewal to the department prior to expiration of the initial five (5) year participation period. Renewal of plan participation shall be irrevocable for an additional period of not less than five (5) years.

(f)

Any school distric
t
or
board of cooperative educational services
which has elected to participate in the state employees' and officials' group insurance plan under subsection (e) of this section may, upon expiration of the initial five (5) years of plan participation required under subsection (e) of this section, elect to cease participation in the state group insurance plan by filing notification of the election to the department on a form and in a manner prescribed by the department. An election under this subsection shall prohibit the
school

board or
district from participation in the state group insurance plan for a period of five (5) years commencing on the date plan participation ceased. Participation in the plan for any
board or

district electing to cease plan participation under this subsection shall be discontinued on a date determined by the department in consultation with the
school

board or
district, but in no event later than one hundred twenty (120) days following the date on which the
board or
d
istrict filed notification under this subsection.

9
‑
3
‑
203.

Definitions.

(a)

As used in this act:

(iv)

"Employee" means any employee of a participating school distric
t
or participating board of cooperative educational services
whose salary is paid by
school district

funds

of the district or board
,

or any official or employee of the state of Wyoming whose salary is paid by state funds, including employees and faculty members of the University of Wyoming and various community colleges in the state, except persons employed on intermittent, irregular, or less than halftime basis and any at-will contract employee who does not meet the requirements established under W.S. 9
‑
2
‑
1022(a)(xi)(F)(III) or (IV). "Employee" shall not include employees of the agricultural extension service of the University of Wyoming who hold federal civil service appointments, are required to participate in federal civil service retirement and who elect to participate in the federal employees' health benefit program as authorized in W.S. 9
‑
3
‑
210(d);

(x
i
v)

"Participating board of
cooperative
educational services" means any board of educational services
formed
pursuant to W.S. 21
‑
20
‑
104
which has elected to participate in the state employees' and officials' group insurance plan under W.S. 9
‑
3
‑
201(e) and which has not discontinued plan participation pursuant to an election under W.S. 9
‑
3
‑
201(f)
;

(xv
i
)

"
Voluntary p
articipating
employer"

includes a participating board of cooperative educational services and participating school district;

(xiv)
(xvii)

"This act" means W.S. 9
‑
3
‑
202 through 9
‑
3
‑
218
.
;

9
‑
3
‑
205.

Administration and management of group insurance program; powers and duties; adoption of rules and regulations; interfund borrowing authority.

(a)

The department shall administer and manage the state employees' and officials' group insurance program and, subject to the provisions of this act:

(xii)

May contract with carriers to underwrite optional group insurance plans which may be additions to or supplemental to those plans contracted under this act and which are paid for entirely by
state

employees and officials, entirely by the
state

employer
, or by both. The contracts shall be designed to provide the fullest benefits at the lowest cost, and the department may contract with the same carriers for the optional group insurance plans as for the other plans contracted for under this act;

(xvi)

Have authority to audit payroll records of
voluntary
participating employers to ensure compliance with requirements of this act.

9
‑
3
‑
207.

Eligibility for membership in plan; state employees; 31 day period to elect enrollment; new employees; later enrollment.

(b)

An eligible
state

employee who enters state service
or service of a
voluntary
participating employer

has thirty-one (31) days from the initial date of employment to elect to be enrolled or not be enrolled in the group insurance plan.

(e)

An eligible employee of
a
voluntary
participating employer
shall have thirty-one (31) days from the date the
employer
becomes a participating
employer
and the employees
thereof are eligible for participation in the state plan, to elect to be enrolled or not be enrolled in the group insurance plan. A
voluntary
participating
employer's
employees shall become eligible on the date the
employer'
s election is effective under W.S. 9
‑
3
‑
201(c).

9
‑
3
‑
210.

Amount of state's contribution; estimates submitted to state budget officer; specified employees participation in federal program; participating
employers
contribution
s
.

(a)

Except for
voluntary

participating
school districts

employers
, the state shall contribute monthly the amount established and appropriated by the legislature for each employee and official enrolled in the plan in accordance with subsections (b) and (c) of this section.

(
f
)

A
participating board of cooperative educational services
shall pay to the department the monthly premium established by the department for coverage of each eligible employee of th
e

employer
electing to become covered by any portion of the group insurance plan.
Additionally, each
participating board of cooperative educational services
shall pay to the department a monthly amount equal to the lowest
premium for nonsupplemental coverage for each eligible employee of the employer not electing to become covered under the nonsupplemental portion of the group insurance plan. For purposes of this subsection an employee shall not be considered as not electing coverage if that employee is covered by other insurance with benefits comparable to or greater than the coverage provided by the least expensive non-supplemental plan
available
under this act.
Monthly premiums shall be at minimum no less than rates assessed for coverage of other enrollees qualified under W.S. 9
‑
3
‑
203(a)(iv), and shall be based upon information reported by the
participating board
of cooperative educational services
to the department, to be in a form and manner prescribed by the department.

9
‑
3
‑
211.

Deductions from salaries of monthly contributions by employees and officials; establishment of procedure.

(a)

The amount of monthly contribution to be made by eligible employees and officials enrolled in the group insurance plan for themselves and their dependents shall be deducted from the monthly salaries of the employees and officials by the various agencies or
voluntary

participating
school districts

employers
and remitted to the department. The procedure for deductions and remittances shall be established by the department. If a flexible benefits plan is chosen, the employees' and officials' contribution shall be applied to the chosen benefits in an amount determined by the employee or official.

9
‑
3
‑
213.

Treasurer of monies; bond; deposit in an account of premium cost payments, dividend payments and return of premiums; expenditures; investment of excess portions.

(a)

The state treasurer shall be the treasurer of monies under this act, and his general bond to the state of Wyoming shall cover all liabilities for his acts as treasurer. The department shall remit to the treasurer for deposit into a separate account all payments received by the department for the group insurance premium costs from employees and officials, and the state agencies, departments, institutions and
voluntary
p
articipating
school districts

employers
. The department shall also remit to the treasurer for deposit into the account any dividend payments and return of premium received by the department
from any carrier underwriting the group insurance plan. All remittances shall be made as soon as possible after they are received.

21
‑
7
‑
301.

Insurance and other fringe and employment benefits.

(b)

The board of trustees of each school district which is a participating district in the state employees' and officials' group insurance plan, as defined under W.S.
9
‑
3
‑
203(a)(xv)

9
‑
3
‑
203(a)(xvi)
, shall provide insurance under the group plan for the teachers, administrative personnel and other employees meeting the definition of employee under W.S. 9
‑
3
‑
203(a)(iv), as provided by W.S. 9
‑
3
‑
202 through 9
‑
3
‑
218. Each participating school district shall report to the department of administration and information as specified by W.S. 9
‑
3
‑
205(e) and make payments for employer and employee contributions as provided by W.S. 9
‑
3
‑
210 and 9
‑
3
‑
211. The amount of contributions paid under W.S. 9
‑
3
‑
211 for each employee electing coverage shall be deducted from the employee's monthly salary in accordance with W.S. 9
‑
3
‑
211.

21
‑
20
‑
108.

Powers and duties of board of cooperative educational services; property; contracts; gifts, grants, bequests or devises; employment and discharge of personnel; expenses; bonding of employees.

(a)

Each board of trustees of cooperative educational services may:

(
ix
)

P
rovide insurance under the state employees' and officials' group insurance plan
pursuant to W.S. 9
‑
3
‑
201(e)
,

for
board
employees meeting the definition of employee under W.S. 9
‑
3
‑
203(a)(iv), as provided by W.S. 9
‑
3
‑
202 through 9
‑
3
‑
218. Each participating
board of
cooperative educational services
shall report to the department of administration and information as specified by W.S. 9
‑
3
‑
205(e)
and
make payments for employer and employee contributions as provided by W.S. 9
‑
3
‑
210 and 9
‑
3
‑
211. The amount of contributions paid under W.S. 9
‑
3
‑
211 for each employee electing coverage shall be deducted from the employee's monthly salary in accordance with W.S. 9
‑
3
‑
211.
Nothing in this paragraph shall be construed to limit the board's authority to provide insurance for its employees as
otherwise provided by law.

Section
2
.
This act is effective
July 1, 2014
.

(END)

Speaker of the House

President of the Senate

Governor

TIME APPROVED: _________

DATE APPROVED: _________

I hereby certify that this act originated in the House.

Chief Clerk

1