2014 -- H 7642

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LC004364

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2014

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A N   A C T

RELATING TO PUBLIC OFFICERS AND EMPLOYEES -- INSURANCE BENEFITS

     Introduced By: Representatives Jacquard, and Palangio

     Date Introduced: February 27, 2014

     Referred To: House Corporations

     It is enacted by the General Assembly as follows:

     SECTION 1. Section 36-12-1 of the General Laws in Chapter 36-12 entitled "Insurance

Benefits" is hereby amended to read as follows:

     36-12-1. Definitions. -- The following words, as used in sections 36-12-1 -- 36-12-14,

shall have the following meanings:

      (1) "Employer", means the state of Rhode Island.

      (2) "Employee", means all persons who are classified employees as the term "classified

employee" is defined under section 36-3-3, and all persons in the unclassified and non-classified

service of the state, including adjunct faculty members at any state community college, state

college, or state university who shall teach at least fifty percent (50%) of the faculty load worked

by regular full-time faculty in an academic semester; provided, however, that the following shall

not be included as "employees" under sections 36-12-1 -- 36-12-14:

      (i) Part-time personnel whose work week is less than twenty (20) hours a week and

limited period and seasonal personnel;

      (ii) Members of the general assembly, its clerks, doorkeepers, and pages.

      (3) "Dependents" means an employee's spouse, domestic partner and unmarried children

under nineteen (19) years of age. Domestic partners shall certify by affidavit to the benefits

director of the division of personnel that the (i) partners are at least eighteen (18) years of age and

are mentally competent to contract, (ii) partners are not married to anyone, (iii) partners are not

related by blood to a degree which would prohibit marriage in the state of Rhode Island, (iv)

partners reside together and have resided together for at least one year, (v) partners are financially

interdependent as evidenced by at least two (2) of the following: (A) domestic partnership

agreement or relationship contract; (B) joint mortgage or joint ownership of primary residence,

(C) two (2) of: (I) joint ownership of motor vehicle; (II) joint checking account; (III) joint credit

account; (IV) joint lease; and/or (D) the domestic partner has been designated as a beneficiary for

the employee's will, retirement contract or life insurance. Misrepresentation of information in the

affidavit will result in an obligation to repay the benefits received, and a civil fine not to exceed

one thousand dollars ($1000) enforceable by the attorney general and payable to the general fund.

The employee will notify the benefits director of the division of personnel by completion of a

form prescribed by the benefits director when the domestic partnership ends.

      (4) "Retired employee", means all persons retired from the active service of the state,

who, immediately prior to retirement, were employees of the state as determined by the

retirement board under section 36-8-1, and also all retired teachers who have elected to come

under the employees' retirement system of the state of Rhode Island.

      (5) "State retiree", means all persons retired from the active service of the state who,

immediately prior to retirement, were employees of the state as determined by the retirement

board under section 36-8-1.

      (6) "Teacher retiree", means all retired teachers who have elected to come under the

employees ' retirement system of the state of Rhode Island.

      (7) "Long-term health care insurance", means any insurance policy or rider advertised,

marketed, offered, or designed to provide coverage for not less than twelve (12) consecutive

months for each covered person on an expense incurred, indemnity, prepaid, or other basis for

one or more necessary or medically necessary diagnostic, preventive, therapeutic, rehabilitative,

maintenance, or personal care services, provided in a setting other than an acute care unit of a

hospital. The term includes: group and individual policies or riders whether issued by insurers,

fraternal benefit societies, nonprofit health, hospital, and medical service corporations; prepaid

health plans, health maintenance organizations; or any similar organization. Long-term health

care insurance shall not include: any insurance policy which is offered primarily to provide basic

medicare supplement coverage; basic hospital expense coverage; basic medical-surgical expense

coverage; hospital confinement indemnity coverage; major medical expense coverage; disability

income protection coverage; accident only coverage; specified disease or specified accident

coverage; or limited benefit health coverage. This list of excluded coverages is illustrative and is

not intended to be all inclusive.

      (8) "Non-Medicare-eligible retiree health care insurance", means the health benefit

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employees who retire from active service of the state (subsequent to July 1, 1989), who

immediately prior to retirement were employees of the state as determined by the retirement

board pursuant to section 36-8-1, shall be entitled to receive until attaining Medicare eligibility.

This health care insurance shall be equal to semi-private hospital care, surgical/medical care and

major medical with a one hundred seventy-five dollar ($175) calendar year deductible. The

aforementioned program will be provided on a shared basis in accordance with section 36-12-4.

      (9) "Medicare-eligible retiree health care insurance", means the health benefit employees

who retire from active service of the state (subsequent to July 1, 1989), who immediately prior to

retirement were employees of the state as determined by the retirement board pursuant to section

36-8-1, shall have access to when eligible for Medicare. This health care insurance shall include

plans providing hospital care, surgical/medical services, rights and benefits which, when taken

together with their federal Medicare program benefits, 42 U.S.C. section 1305 et seq., shall be

comparable to those provided for retirees prior to the attainment of Medicare eligibility.

      (10) "Health reimbursement arrangement", or "HRA" means an account that:

      (i) Is paid for and funded solely by state contributions;

      (ii) Reimburses a Medicare-eligible state retiree for medical care expenses as defined in

section 213(d) of the Internal Revenue Code of 1986, as amended, which includes

reimbursements for health care insurance premiums;

      (iii) Provides reimbursements up to a maximum dollar amount for a coverage period; and

      (iv) Provides that any unused portion of the maximum dollar amount at the end of a

coverage period is carried forward to increase the maximum reimbursement amount in

subsequent coverage periods.

     SECTION 2. Section 36-12-2 of the General Laws in Chapter 36-12 entitled "Insurance

Benefits" is hereby amended to read as follows:

     36-12-2. Hospital care and surgical-medical service benefits. -- (a) Employees of the

state of Rhode Island shall receive, in addition to wages, salaries, and any other remuneration or

benefits, hospital care and surgical-medical services, rights, and benefits purchased by the

director of administration pursuant to section 36-12-6, with the specific condition that the benefits

and services provided by the carrier(s) will be substantially equivalent to those set forth in any

collective bargaining agreement(s) executed between the state of Rhode Island and authorized

representatives of the unions representing state employees or the health care coverage presently

being provided. Adjunct faculty members at any state community college, state college, or state

university, who teach at least fifty percent (50%) of the faculty load hours worked by regular full-

time faculty in any academic semester, shall be eligible for benefits as provided for in this

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section.

      (b) The state will work diligently with leadership of organized labor in order to ensure

competitive, cost effective health care services for all employees of the state who may be eligible

for those benefits.

      (c) Any new plan must accept pre-existing conditions for those individuals who will be

covered by the new policy.

      (d) Part-time employees whose work week is less than twenty (20) hours a week,

including adjunct faculty members at any state community college, state college, or state

university who teaches less than fifty percent (50%) of the faculty load hours worked by regular

full-time faculty in any academic semester, may purchase the benefits set forth above. The

employees shall pay the same rate for the benefits as the group rate paid by the state for the

benefits. Payments for the benefits may be deducted in accordance with the provisions of section

36-12-3.

     SECTION 3. This act shall take effect upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO PUBLIC OFFICERS AND EMPLOYEES -- INSURANCE BENEFITS

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     This act would provide that adjunct faculty members at any state college or university

who teach at least fifty percent (50%) of the hours regularly worked by full-time faculty in an

academic semester would be eligible for the same state hospital care and surgical-medical service

benefit as other state employees.

     This act would take effect upon passage.

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