hb1372_LC_28_3039S_hs

hb1372_LC_28_3039S_hs_4.html

06 LC 28 3039S

The House Committee on Appropriations offers the following substitute to HB 1372:

A BILL TO BE ENTITLED
AN ACT

To amend Chapter 18 of Title 45 of the Official Code of Georgia Annotated, relating to employeeś insurance and benefit plans, so as to provide for mechanisms for termination of coverage for nonpayment of premium; to provide for notification to employers; to provide for related matters; to provide an effective date; to repeal conflicting laws; and for other purposes.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:

SECTION 1.

Chapter 18 of Title 45 of the Official Code of Georgia Annotated, relating to employeeś insurance and benefit plans, is amended striking Code Section 45-18-5, relating to county officers and employees, and inserting in lieu thereof a new Code Section 45-18-5 to read as follows:

"45-18-5.

(a) The board is authorized to contract with the various counties of this state for the inclusion of the employees of any county within any health insurance plan or plans established under this article. The various counties of this state are authorized to contract with the board as provided in this Code section. In the event that any such contract is entered into, it shall be the duty of any counties so contracting to deduct from the salary or other compensation of its employees such payment as may be required under any health insurance plan and to remit the same to the board for inclusion in the health insurance fund. In addition, it shall be the duty of such county or counties to make the employer contributions required for the operation of such plan or plans. Should such county or counties fail to remit such deductions or such employer contributions, the commissioner may, not less than 30 days after written notice was sent to such county or counties via certified mail, terminate the coverage for such employees as of the day following the last day of the month after which such deductions or such employer contributions were remitted to the board. Coverage may be reinstated upon the tender of any such deductions or employer contributions not previously remitted. If coverage is not so reinstated, the commissioner may recover the amount of any claims paid on behalf of such employees from the employer.

(b) County officials may elect to be included in a health insurance plan, health maintenance organization, or other health benefits plan offered or provided by a county for its county officials or any health plan or plans established under this article. The governing authority of a county may elect by majority vote to provide for payment in a uniform manner of any portion, all, or none of the employer contributions for or required premiums or payments due from the county officials or former county officials who under this Code section are eligible for inclusion in the health plan or plans established under this article. The board is authorized to contract with the County Officers Association of Georgia on behalf of the various counties of this state for the inclusion in any health insurance plan or plans established under this article of officials, spouses, and dependents of officials serving in one or more of the following capacities: probate judge, sheriff, tax commissioner or tax collector, clerk of the superior court, full-time or part-time state court judge, solicitor, state court clerk, or solicitor-general, chief magistrate, juvenile court judge, or members of the county governing authority and officials, spouses, and dependents of officials leaving office on or after December 31, 1996, who have served at least 12 years in one or more of the following capacities: probate judge, sheriff, tax commissioner or tax collector, clerk of the superior court, full-time or part-time state court judge, solicitor, state court clerk, or solicitor-general, chief magistrate, juvenile court judge, or members of the county governing authority. The County Officers Association of Georgia is authorized to contract with the board as provided in this Code section. In the event that such a contract is entered into, it shall be the duty of the County Officers Association of Georgia to collect from the various counties of this state with which it has contracted under this subsection and remit to the board such payment as may be required under any health insurance plan for inclusion in the health insurance fund. The County Officers Association of Georgia may add a reasonable fee to the premiums required under the plan to cover necessary administrative costs. In addition, it shall be the duty of the County Officers Association of Georgia to maintain and remit to the board accurate records of official, dependent, and other information required by the board to administer this Code section. Should the County Officers Association of Georgia fail to remit such payment, the commissioner may, not less than 30 days after written notice was sent to the County Officers Association of Georgia via certified mail, terminate the coverage for such officials as of the day following the last day of the month after which such deductions or such employer contributions were remitted to the board. Coverage may be reinstated upon the tender of any such deductions or employer contributions not previously remitted. If coverage is not so reinstated, the commissioner may recover the amount of any claims paid on behalf of such officials from the County Officers Association of Georgia.

(c) The various counties of this state are authorized to contract with the County Officers Association of Georgia for the inclusion in any health insurance plan or plans established under this article of officials, spouses, and dependents of officials serving in one or more of the following capacities: probate judge, sheriff, tax commissioner or tax collector, clerk of the superior court, full-time or part-time state court judge, solicitor, or solicitor-general, chief magistrate, juvenile court judge, or members of the county governing authority and officials, spouses, and dependents of officials leaving office on or after December 31, 1996, who have served at least 12 years in one or more of the following capacities: probate judge, sheriff, tax commissioner or tax collector, clerk of the superior court, full-time or part-time state court judge, solicitor, state court clerk, or solicitor-general, chief magistrate, juvenile court judge, or members of the county governing authority. The County Officers Association of Georgia is authorized to contract with the various counties of the state as provided in this Code section. In the event that any such contracts are entered into, it shall be the duty of any counties so contracting to deduct from the salary or other compensation of its officials and otherwise collect from former officials such payment as may be required under any health insurance plan and to remit the same to the County Officers Association of Georgia for payment to the board. To the extent employer contributions are not fully made by a county, it shall be the duty of the covered officials and former officials to make such employer contributions required on their behalf for the operation of such plan or plans. Should the County Officers Association of Georgia fail to remit such payment, the commissioner may, not less than 30 days after written notice was sent to the County Officers Association of Georgia via certified mail, terminate the coverage for such officials as of the day following the last day of the month after which such deductions on such employer contributions were remitted to the board. Coverage may be reinstated upon the tender of any such deductions or employer contributions not previously remitted. If coverage is not so reinstated, the commissioner may recover the amount of any claims paid on behalf of such officials from the County Officers Association of Georgia.

(c.1) Any local board of education may elect for members thereof and their spouses and dependents to be included in any health plan or plans established under Code Section 20-2-918. It shall be the duty of any local boards of education so electing to deduct from the salary or other compensation of its members such payment as may be required under paragraph (1) of subsection (b) of Code Section 20-2-55 and to remit the same to the health insurance fund created under Code Section 20-2-918. Should any local board of education fail to remit such payment to the board, the provisions of subsection (b) of Code Section 20-2-920 shall be applicable to such nonpayment.

(d) In administering this Code section, it shall be the responsibility of the board to develop rates for coverage based on the actual claims experience of the individuals covered by this Code section. The board shall require a bond, not to exceed one yeaŕs annual premium, satisfactory to the commissioner to assure the contractual performance of any entities with which it contracts under this Code section.

(e) Nothing in this Code section shall preclude the exercise of any options or rights otherwise available to such county officers or members of local boards of education under other state or federal laws which relate to extension or continuation of health benefits."

SECTION 2.

Said chapter is further amended by striking Code Section 45-18-5.1, relating to licensed blind or otherwise seriously disabled vendors, and inserting in lieu thereof a new Code Section 45-18-5.1 to read as follows:

"45-18-5.1.

The Department of Labor is authorized to contract with the Georgia Cooperative Services for the Blind, Inc., a nominee agent designated by the Division of Rehabilitation Services of the Department of Labor, for the inclusion of licensed blind persons or other persons with disabilities operating a vending facility in accordance with Article 2 of Chapter 15 of Title 34 within any health insurance plan or plans established under this article. In the event any contract is entered into, it shall be the duty of the Georgia Cooperative Services for the Blind, Inc., to deduct the payment required under the plan from the earnings or other compensation of licensed blind persons or other persons with disabilities and remit it to the Department of Labor for inclusion in the health insurance fund. In addition, it shall be the duty of the Georgia Cooperative Services for the Blind, Inc., to make the employer contributions required for the operation of such plan or plans. Should the Georgia Cooperative Services for the Blind, Inc., fail to remit such payment, the commissioner may, not less than 30 days after written notice was sent to the Georgia Cooperative Services for the Blind, Inc., via certified mail, terminate the coverage for such employees as of the day following the last day of the month after which such deductions or such employer contributions were remitted to the board. Coverage may be reinstated upon the tender of any such deductions or employer contributions not previously remitted. If coverage is not so reinstated, the commissioner may recover the amount of any claims paid on behalf of such employees from the Georgia Cooperative Services for the Blind, Inc."

SECTION 3.

Said chapter is further amended by striking Code Section 45-18-5.2, relating to sheltered employment center employees, and inserting in lieu thereof a new Code Section 45-18-5.2 to read as follows:

"45-18-5.2.

The board is authorized to contract with public and private nonprofit sheltered employment centers which contract with or employ persons within the Division of Rehabilitation Services of the Department of Labor and the Division of Mental Health, Developmental Disabilities, and Addictive Diseases of the Department of Human Resources for the inclusion of employees working in the sheltered employment centers within any health insurance plan or plans established under this article. The board is authorized to adopt regulations for entering into any contract. In the event any contract is entered into, it shall be the duty of the sheltered employment center to remit any funds that may be deducted from the earnings or other compensation of such sheltered employees for inclusion in the health insurance fund. In addition, it shall be the duty of the sheltered employment center to make the employer contributions required for the operation of such plan or plans. Should the sheltered employment center fail to remit such payment, the commissioner may, not less than 30 days after written notice was sent to the sheltered employment center via certified mail, terminate the coverage for such employees as of the day following the last day of the month after which such deductions or such employer contributions were remitted to the board. Coverage may be reinstated upon the tender of any such deductions or employer contributions not previously remitted. If coverage is not so reinstated, the commissioner may recover the amount of any claims paid on behalf of such employees from the shelter employment center."

SECTION 4.

Said chapter is further amended by striking Code Section 45-18-7.1, relating to employees of the Georgia Development Authority, and inserting in lieu thereof a new Code Section 45-18-7.1 to read as follows:

"45-18-7.1.

The board is authorized to contract with the Georgia Development Authority for the inclusion in any health insurance plan or plans established under this article of the employees and retiring employees of the Georgia Development Authority and their spouses and dependent children, as defined by the regulations of the board. It shall be the duty of the Georgia Development Authority to deduct from the salary or other remuneration of its employees such payment as may be required under the board́s regulations. In addition, it shall be the duty of the Georgia Development Authority to make the employer contributions required for the operation of such plan or plans. Should the Georgia Development Authority fail to remit such payment, the commissioner may, not less than 30 days after written notice was sent to the Georgia Development Authority via certified mail, terminate the coverage for such employees as of the day following the last day of the month after which such deductions or such employer contributions were remitted to the board. Coverage may be reinstated upon the tender of any such deductions or employer contributions not previously remitted. If coverage is not so reinstated, the commissioner may recover the amount of any claims paid on behalf of such employees from the Georgia Development Authority."

SECTION 5.

Said chapter is further amended by striking Code Section 45-18-7.2, relating to Agrirama Development Authority employees, and inserting in lieu thereof a new Code Section 45-18-7.2 to read as follows:

"45-18-7.2.

The board is authorized to contract with the Georgia Agrirama Development Authority for the inclusion in any health insurance plan or plans established under this article of the employees and retiring employees of the Georgia Agrirama Development Authority and their spouses and dependent children, as defined by the regulations of the board. It shall be the duty of the Georgia Agrirama Development Authority to deduct from the salary or other remuneration of its employees such payment as may be required under the board́s regulations. In addition, it shall be the duty of the Georgia Agrirama Development Authority to make the employer contributions required for the operation of such plan or plans. Should the Georgia Agrirama Development Authority fail to remit such payment, the commissioner may, not less than 30 days after written notice was sent to the Georgia Agrirama Development Authority via certified mail, terminate the coverage for such employees as of the day following the last day of the month after which such deductions or such employer contributions were remitted to the board. Coverage may be reinstated upon the tender of any such deductions or employer contributions not previously remitted. If coverage is not so reinstated, the commissioner may recover the amount of any claims paid on behalf of such employees from the Georgia Agrirama Development Authority."

SECTION 6.

Said chapter is further amended by striking Code Section 45-18-7.3, relating to employees of Peace Officerś Annuity and Benefit Fund, Georgia Firefighterś Pension Fund, and Sheriffś Retirement Fund of Georgia, spouses, and dependent children, and inserting in lieu thereof a new Code Section 45-18-7.3 to read as follows:

"45-18-7.3.

The board is authorized to contract with the Peace Officerś Annuity and Benefit Fund, Georgia Firefighterś Pension Fund, and the Sheriffś Retirement Fund of Georgia for the inclusion in any health insurance plan or plans established under this article of the employees and retiring employees of said Peace Officerś Annuity and Benefit Fund, Georgia Firefighterś Pension Fund, and Sheriffś Retirement Fund of Georgia and their spouses and dependent children, as defined by the regulations of the board. It shall be the duty of said Peace Officerś Annuity Benefit Fund, Georgia Firefighterś Pension Fund, and Sheriffś Retirement Fund of Georgia to deduct from the salary or other remuneration of their employees such payment as may be required under the board́s regulations. In addition, it shall be the duty of said Peace Officerś Annuity and Benefit Fund, Georgia Firefighterś Pension Fund, and Sheriffś Retirement Fund of Georgia to make the employer contributions required for the operation of such plan or plans. Should the Peace Officerś Annuity and Benefit Fund, Georgia Firefighterś Pension Fund, or Sheriffś Retirement Fund of Georgia fail to remit such payment, the commissioner may, not less than 30 days after written notice was sent to the Peace Officerś Annuity and Benefit Fund, Georgia Firefighterś Pension Fund, or Sheriffś Retirement Fund of Georgia, as the case may be, via certified mail, terminate the coverage for such employees as of the day following the last day of the month after which such deductions or such employer contributions were remitted to the board. Coverage may be reinstated upon the tender of any such deductions or employer contributions not previously remitted. If coverage is not so reinstated, the commissioner may recover the amount of any claims paid on behalf of such employees from the Peace Officerś Annuity and Benefit Fund, Georgia Firefighterś Pension Fund, or Sheriffś Retirement Fund of Georgia, as the case may be."

SECTION 7.

Said chapter is further amended by striking Code Section 45-18-7.5, relating to employees of Georgia Housing and Finance Authority, spouses, and dependent children, and inserting in lieu thereof a new Code Section 45-18-7.5 to read as follows:

"45-18-7.5.

The board is authorized to contract with the Georgia Housing and Finance Authority for the inclusion in any health insurance plan or plans established under this article of the employees and retiring employees of the Georgia Housing and Finance Authority and their spouses and dependent children, as defined by the regulations of the board. It shall be the duty of the Georgia Housing and Finance Authority to deduct from the salary or other remuneration or otherwise collect such payment from its qualified employees, retired employees, or dependents as may be required under the board́s regulations. In addition, it shall be the duty of the Georgia Housing and Finance Authority to make the employer contributions required for the operation of such plan or plans. Should the Georgia Housing and Finance Authority fail to remit such payment, the commissioner may, not less than 30 days after written notice was sent to the Georgia Housing and Finance Authority via certified mail, terminate the coverage for such employees as of the day following the last day of the month after which such deductions or such employer contributions were remitted to the board. Coverage may be reinstated upon the tender of any such deductions or employer contributions not previously remitted. If coverage is not so reinstated, the commissioner may recover the amount of any claims paid on behalf of such employees from the Georgia Housing and Finance Authority."

SECTION 8.

Said chapter is further amended by striking Code Section 45-18-7.6, relating to employees of Georgia-Federal State Inspection Service, spouses, and dependent children, and inserting in lieu thereof a new Code Section 45-18-7.6 to read as follows:

"45-18-7.6.

The board is authorized to contract with the Georgia-Federal State Inspection Service for the inclusion in any health insurance plan or plans established under this article of the state employees of, retiring employees of, and employees who retired under the Employeeś Retirement System of Georgia on or before July 1, 2000, from the Georgia-Federal State Inspection Service and their spouses and dependent children, as defined by the regulations of the board. It shall be the duty of the Georgia-Federal State Inspection Service to deduct from the salary or other remuneration or otherwise collect such payment from its qualified employees or dependents as may be required under the board́s regulations. In addition, it shall be the duty of the Georgia-Federal State Inspection Service to make the employer contributions required for the operation of such plan or plans. Should the Georgia-Federal State Inspection Service fail to remit such payment, the commissioner may, not less than 30 days after written notice was sent to the Georgia-Federal State Inspection Service via certified mail, terminate the coverage for such employees as of the day following the last day of the month after which such deductions or such employer contributions were remitted to the board. Coverage may be reinstated upon the tender of any such deductions or employer contributions not previously remitted. If coverage is not so reinstated, the commissioner may recover the amount of any claims paid on behalf of such employees from the Georgia-Federal State Inspection Service."

SECTION 9.

Said chapter is further amended by striking Code Section 45-18-7.7, relating to employees and dependents of critical access hospitals in health plans, and inserting in lieu thereof a new Code Section 45-18-7.7 to read as follows:

"45-18-7.7.

(a) The board is authorized to contract with any public or nonprofit critical access hospital that meets such requirements as the department may establish for the inclusion of the employees and dependents of such critical access hospitals in any health plan established under this article. It shall be the duty of such critical access hospital to deduct from the salary or other remuneration or otherwise collect such payment from its qualified employees as may be required under the board́s regulations. In addition, it shall be the duty of such critical access hospital to make the employer contributions required for the operation of such plan. Should any critical access hospital fail to remit such payment, the commissioner may, not less than 30 days after written notice was sent to such critical access hospital via certified mail, terminate the coverage for such employees as of the day following the last day of the month after which such deductions or such employer contributions were remitted to the board. Coverage may be reinstated upon the tender of any such deductions or employer contributions not previously remitted. If coverage is not so reinstated, the commissioner may recover the amount of any claims paid on behalf of such employees from such critical access hospital.

(b) The board is authorized to contract with any federally qualified health center, as defined in Section 1395x(aa)(4) of Title 42 of the United States Code Annotated, that meets such requirements as the department may establish for the inclusion of the employees and dependents of such federally qualified health centers in any health plan established under this article. It shall be the duty of the federally qualified health center to deduct from the salary or other remuneration or otherwise collect such payment from its qualified employees as may be required under the board́s regulations. In addition, it shall be the duty of such federally qualified health center to make the employer contributions required by the board for the operation of such plan. The department shall make a determination, no later than January 1, 2005, as to whether a federally qualified health center is an agency or instrumentality of the State of Georgia. In the event that the department determines that such centers are agencies or instrumentalities of the State of Georgia, then all employees and dependents of such centers shall be eligible for inclusion in the state employeeś health insurance plan. Should any such federally qualified health center fail to remit such payment, the commissioner may, not less than 30 days after written notice was sent to such federally qualified health center via certified mail, terminate the coverage for such employees as of the day following the last day of the month after which such deductions or such employer contributions were remitted to the board. Coverage may be reinstated upon the tender of any such deductions or employer contributions not previously remitted. If coverage is not so reinstated, the commissioner may recover the amount of any claims paid on behalf of such employees from such federally qualified health center.

(c) The authority granted to the board pursuant to Code Sections 45-18-5.1, 45-18-5.2, 45-18-7.1, 45-18-7.2, 45-18-7.3, 45-18-7.5, and 45-18-7.6; by this Code section; or by any other provision of this article may be exercised only upon a determination by the department that the employer is an agency or instrumentality of the State of Georgia or, if the department determines that such entities are not agencies or instrumentalities of the State of Georgia, then employees and dependents of such entities may be included in the state employeeś health insurance plan up to the point that such health plan would not be able to retain its exempt status under the federal Employee Retirement Income Security Act of 1974."

SECTION 10.

Said chapter is further amended by striking Code Section 45-18-16, relating to certification to departments and other entities of the state of employer payment percentage for ensuing fiscal year, and inserting in lieu thereof a new Code Section 45-18-16 to read as follows:

"45-18-16.

On or before June 1 of each year Not less than 30 days prior to the commencement of the plan year, the commissioner of community health shall certify to the director or chief administrative officer of each state department, bureau, institution, board, commission, or authority having employees covered by this article the amount of percentage adopted by the board as employer payments for the ensuing fiscal year; and they shall, in their annual budget, make provisions for funds with which to pay the board the required employer payments."

SECTION 11.

This Act shall become effective on July 1, 2006.

SECTION 12.

All laws and parts of laws in conflict with this Act are repealed.