2023 -- H 5043

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LC000404

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2023

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A N   A C T

RELATING TO PUBLIC OFFICERS AND EMPLOYEES -- INSURANCE BENEFITS

     

     Introduced By: Representatives Hull, Speakman, Morales, Shallcross Smith, O'Brien,
Fellela, Tanzi, Fogarty, Serpa, and Messier

     Date Introduced: January 11, 2023

     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 entitled

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

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     36-12-1. Definitions.

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     The following words, as used in §§ 36-12-1 — 36-12-14, shall have the following

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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 service

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of the state, including adjunct facility members at any state community college, state college or

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

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time faculty in an academic semester; provided, however, that the following shall not be included

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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 limited

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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 director

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

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

 

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

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

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

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relationship contract; (B) joint mortgage or joint ownership of primary residence, (C) two (2) of:

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(I) joint ownership of motor vehicle; (II) joint checking account; (III) joint credit account; (IV)

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joint lease; and/or (D) the domestic partner has been designated as a beneficiary for the employee’s

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will, retirement contract or life insurance. Misrepresentation of information in the affidavit will

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

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dollars ($1,000) enforceable by the attorney general and payable to the general fund. The employee

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will notify the benefits director of the division of personnel by completion of a form prescribed by

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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, who,

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

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

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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 board

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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 healthcare 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 months

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

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necessary or medically necessary diagnostic, preventive, therapeutic, rehabilitative, maintenance,

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or personal care services, provided in a setting other than an acute care unit of a hospital. The term

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includes: group and individual policies or riders whether issued by insurers, fraternal benefit

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societies, nonprofit health, hospital, and medical service corporations; prepaid health plans, health

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maintenance organizations; or any similar organization. Long-term healthcare insurance shall not

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include: any insurance policy which is offered primarily to provide basic medicare supplement

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

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confinement indemnity coverage; major medical expense coverage; disability income protection

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coverage; accident only coverage; specified disease or specified accident coverage; or limited

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benefit health coverage. This list of excluded coverages is illustrative and is not intended to be all

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inclusive.

 

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     (8) “Non-Medicare-eligible retiree healthcare 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

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

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

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shall be equal to semi-private hospital care, surgical/medical care and major medical with a one

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hundred seventy-five dollar ($175) calendar year deductible. The aforementioned program will be

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provided on a shared basis in accordance with § 36-12-4.

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     (9) “Medicare-eligible retiree healthcare 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 healthcare 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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healthcare 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 subsequent

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coverage periods.

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     36-12-2. Hospital care and surgical-medical service benefits.

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     (a) Employees of the state of Rhode Island shall receive, in addition to wages, salaries, and

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any other remuneration or benefits, hospital care and surgical-medical services, rights, and benefits

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

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

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

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

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

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

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full-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 the

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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 who

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

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

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other state employees.

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     This act would take effect upon passage.

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