2016 -- H 7379

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LC003814

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2016

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A N   A C T

RELATING TO PUBLIC OFFICERS AND EMPLOYEES - INSURANCE BENEFITS

     

     Introduced By: Representatives Jacquard, and Fogarty

     Date Introduced: January 28, 2016

     Referred To: House Finance

     It is enacted by the General Assembly as follows:

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     SECTION 1. Sections 36-12-1 and 36-12-2 of the General Laws in Chapter 36-12

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entitled "Insurance Benefits" are hereby amended to read as follows:

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

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have the following meanings:

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

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

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

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

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

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regular full-time faculty in an academic semester; provided, however, that the following shall not

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be included as "employees" under §§ 36-12-1 -- 36-12-14:

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

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limited period and seasonal personnel;

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

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

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

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

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

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

 

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

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

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

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

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

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

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

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

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

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

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

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

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

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employees' retirement system of the state of Rhode Island.

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

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

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board under § 36-8-1.

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

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employees ' retirement system of the state of Rhode Island.

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

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

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

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

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

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

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

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

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

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

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

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

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

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not intended to be all inclusive.

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      (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

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

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

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

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

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

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

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

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retirement were employees of the state as determined by the retirement board pursuant to § 36-8-

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

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

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with their federal Medicare program benefits, 42 U.S.C. § 1305 et seq., shall be comparable to

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

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

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

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

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§ 213(d) of the Internal Revenue Code of 1986, as amended, which includes reimbursements for

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health care insurance premiums;

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

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

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

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subsequent coverage periods.

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

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

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

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

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

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

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

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

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

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

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section.

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

 

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

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for those benefits.

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

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covered by the new policy.

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

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purchase the benefits set forth above. The employees shall pay the same rate for the benefits as

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the group rate paid by the state for the benefits. Payments for the benefits may be deducted in

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accordance with the provisions of § 36-12-3.

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     SECTION 2. 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

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

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

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benefit as other state employees.

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     This act would take effect upon passage.

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