Assembly Bill No. 339-Assemblymen de Braga, Segerblom, Neighbors, Chowning, Koivisto, Manendo, Evans, Price, Collins, Parks, Giunchigliani, Amodei, Close, Herrera, Goldwater and Ohrenschall
April 8, 1997
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Referred to Committee on Government Affairs
SUMMARY--Provides for state contribution to cost of certain group insurance or medical and hospital coverage for retired employees of school district. (BDR 23-1047)
FISCAL NOTE: Effect on Local Government: No.
Effect on the State or on Industrial Insurance: Contains Appropriation not included in Executive Budget.
EXPLANATION - Matter in italics is new; matter in brackets [ ] is material to be omitted.
AN ACT relating to public employees; providing for the payment by the state under certain circumstances of a portion of the cost of certain group insurance or medical and hospital service coverage for a retired employee of a school district; making an appropriation; and providing other matters properly relating thereto.
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1 Chapter 287 of NRS is hereby amended by adding thereto a new section to read as follows:
1. The department of personnel shall pay to the insurer a portion of the premium, membership cost or contribution for group insurance or medical and hospital service coverage on behalf of a person who retired from the service of a school district with at least 5 years of service and is eligible for that coverage pursuant to NRS 287.023, 287.0235, 287.045 or 287.0475. Money received by an insurer pursuant to this subsection must be applied by the insurer to reduce the premium, membership cost or contribution that would otherwise be paid by the retired person.
2. Except as otherwise provided in this subsection, the amount to be paid on behalf of a retired person pursuant to subsection 1 must be equal to the monthly base amount provided by law for that fiscal year, multiplied by the number of years of service credited to the retired person, excluding any service purchased pursuant to NRS 286.300. The amount paid must not exceed the actual cost of the coverage selected by the retired person.
3. For the purposes of subsection 2:
(a) Credit for service must be calculated in the manner set forth in chapter 286 of NRS.
(b) No proration may be made for a partial year of service.
4. The department of personnel shall agree with the insurer for the billing of remaining premiums, membership costs or contributions for the retired person to the retired person. If coverage is provided through the state's group insurance program, this agreement must be made through the committee on benefits.
5. The department of personnel shall set forth separately in the proposed budget of the department submitted pursuant to NRS 353.210, an estimate of its expenditure requirements on behalf of persons retired from the service of a school district pursuant to subsection 1.
Sec. 2. NRS 287.023 is hereby amended to read as follows:
287.023 1. Whenever an officer or employee of the governing body of [any] a county, school district, municipal corporation, political subdivision, public corporation or other public agency of the State of Nevada retires [under] pursuant to the conditions set forth in NRS 286.510 or 286.620 and, at the time of his retirement, was covered or had his dependents covered by any group insurance or medical and hospital service established pursuant to NRS 287.010 and 287.020, the officer or employee has the option upon retirement to cancel or continue [any] such group insurance or join the state's program of group insurance or medical and hospital service coverage to the extent that such coverage is not provided to him or a dependent by the Health Insurance for the Aged Act (42 U.S.C. §§ 1395 et seq.).
2. Except as otherwise provided in section 1 of this act:
(a) A retired person who continues coverage under the state's program of group insurance shall assume the portion of the premium or membership costs for the coverage continued which the governing body does not pay on behalf of retired officers or employees.
(b) A person who joins the state's program for the first time upon retirement shall assume all costs for the coverage.
A dependent of such a retired person has the option, which may be exercised to the same extent and in the same manner as the retired person, to cancel or continue coverage in effect on the date the retired person dies. The dependent is not required to continue to receive retirement payments from the public employees' retirement system in order to continue coverage.
3. Except as otherwise provided in NRS 287.0235, notice of the selection of the option must be given in writing to the last public employer of the officer or employee within 30 days after the date of retirement or death, as the case may be. If no notice is given by that date, the retired employee and his dependents shall be deemed to have selected the option to cancel the coverage or not to join the state's program, as the case may be.
4. The governing body of [any] a county, school district, municipal corporation, political subdivision, public corporation or other public agency of this state may pay [the cost, or any] all or part of the cost [,] of group insurance and medical and hospital service coverage for persons eligible for that coverage [under] pursuant to subsection 1, but it must not pay a greater portion than it does for its current officers and employees.
Sec. 3. NRS 287.0235 is hereby amended to read as follows:
287.0235 1. Notwithstanding the provisions of NRS 287.023 and 287.045, a person or the surviving spouse of a person who did not, at the time of his retirement pursuant to the conditions set forth in NRS 286.510 or 286.620, have the option to participate in the state's program of group insurance may join the state's program of group insurance, to the extent that such coverage is not provided to him or a dependent by the Health Insurance for the Aged Act (42 U.S.C. §§ 1395 et seq.), by:
(a) Providing the public employees' retirement board with written notice of his intention to enroll in the state's program during a period of open enrollment;
(b) Showing evidence of his good health as a condition of enrollment;
(c) Accepting the state program's current plan of insurance and any subsequent changes to the plan; and
(d) [Paying] Except as otherwise provided in section 1 of this act, paying any portion of the policy's premiums in the manner set forth in NRS 286.615, which are due from the date of enrollment.
The public employees' retirement board shall, beginning on September 1, 1997, have a biennial period of open enrollment between September 1 of each odd-numbered year and January 31 of each even-numbered year during which eligible retired persons may join the state's program of group insurance pursuant to this section.
2. The public employees' retirement board shall, on or before September 1, 1997, and every September 1 of each odd-numbered year thereafter, notify eligible retired persons described in subsection 1 of the period of open enrollment by:
(a) Mailing a notice regarding the period of open enrollment to all retired persons who are, according to its records, eligible to join the state's program of group insurance;
(b) Posting a notice of the period of open enrollment at its principal office and at least three other separate prominent places, such as a library, community center or courthouse; and
(c) Publicizing the period of open enrollment in any other manner reasonably calculated to inform additional eligible retired persons.
3. The public employees' retirement board shall notify the committee on benefits of the enrollment of any person on or before March 1 immediately following the period of open enrollment. The committee on benefits shall approve or disapprove the request for enrollment within 90 days after receipt of the request. Enrollment shall be deemed to occur on the day the request is approved.
4. Enrollment in the state's program of group insurance pursuant to this section excludes claims for expenses for any condition for which medical advice, treatment or consultation was rendered within 12 months before enrollment unless:
(a) The person has not received any medical advice, treatment or consultation for a period of 6 consecutive months after enrollment; or
(b) The insurance coverage has been in effect more than 12 consecutive months.
Sec. 4. NRS 287.040 is hereby amended to read as follows:
287.040 [The] Except as otherwise provided in section 1 of this act, the provisions of NRS 287.010 to 287.040, inclusive, and section 1 of this act do not make it compulsory upon any governing body of any county, school district, municipal corporation, political subdivision, public corporation or other public agency of the State of Nevada to make any contributions for the payment of any premiums or other costs for group insurance or medical or hospital services, or upon any officer or employee of any county, school district, municipal corporation, political subdivision, public corporation or other public agency of this state to accept or join any plan of group insurance or to assign his wages or salary or to authorize deductions from his wages or salary in payment of premiums therefor.
Sec. 5. NRS 287.0475 is hereby amended to read as follows:
287.0475 1. A public employee who has retired pursuant to NRS 286.510 or 286.620 or a retirement program provided pursuant to NRS 286.802, or the surviving spouse of such a retired public employee who is deceased may, in any even-numbered year, reinstate any insurance, except life insurance, which was provided to him and his dependents at the time of his retirement [under] pursuant to NRS 287.010, 287.020 or 287.0433 as a public employee by:
(a) Giving written notice of his intent to reinstate the insurance to the [employees'] employee's last public employer not later than January 31, of an even-numbered year;
(b) Accepting the public employer's current program or plan of insurance and any subsequent changes thereto; and
(c) [Paying] Except as otherwise provided in section 1 of this act, paying any portion of the policy's premiums, in the manner set forth in NRS 286.615, which are due from the date of reinstatement and not paid by the public employer.
The last public employer shall give the insurer notice of the reinstatement no later than March 31, of the year in which the public employee or surviving spouse gives notice of his intent to reinstate the insurance. The insurer shall approve or disapprove the request for reinstatement within 90 days after the date of the request.
2. Reinstatement of insurance excludes claims for expenses for any condition for which medical advice, treatment or consultation was rendered within 12 months before reinstatement unless:
(a) The person has not received any medical advice, treatment or consultation for a period of 6 consecutive months after the reinstatement; or
(b) The reinstated insurance has been in effect more than 12 consecutive months.
3. The retired public employee, his dependents and the surviving spouse of a retired public employee who is deceased must show evidence of their good health as a condition of the reinstatement.
Sec. 6. 1. There is hereby appropriated from the state general fund to the department of personnel, for the purpose of making the payments required pursuant to section 1 of this act:
For the fiscal year 1997-98 $3,506,256
For the fiscal year 1998-99 $3,943,080
2. Any balance of the sums appropriated pursuant to subsection 1 remaining at the end of the respective fiscal years must not be committed for expenditure after June 30, and reverts to the state general fund as soon as all payments of money committed have been made.
Sec. 7. For the purposes of subsection 2 of section 1 of this act, the monthly base amount:
1. For the fiscal year 1997-98 is $2.60.
2. For the fiscal year 1998-99 is $2.70.
Sec. 8. This act becomes effective on July 1, 1997.