SB 356-FN - AS INTRODUCED

 

 

2022 SESSION

22-2941

10/05

 

SENATE BILL 356-FN

 

AN ACT relative to medical benefits payments by state retirees.

 

SPONSORS: Sen. D'Allesandro, Dist 20; Sen. Bradley, Dist 3; Sen. Sherman, Dist 24; Sen. Hennessey, Dist 1; Sen. Rosenwald, Dist 13; Sen. Watters, Dist 4; Sen. Whitley, Dist 15; Sen. Birdsell, Dist 19; Sen. Carson, Dist 14; Sen. Gannon, Dist 23; Sen. Cavanaugh, Dist 16; Sen. Prentiss, Dist 5; Sen. Soucy, Dist 18; Sen. Kahn, Dist 10

 

COMMITTEE: Executive Departments and Administration

 

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ANALYSIS

 

This bill clarifies the procedure for the notice, payment, termination, and reenrollment for medical benefits payments of retired state employees.

 

This bill is a request of the department of administrative services.

 

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Explanation: Matter added to current law appears in bold italics.

Matter removed from current law appears [in brackets and struckthrough.]

Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

22-2941

10/05

 

STATE OF NEW HAMPSHIRE

 

In the Year of Our Lord Two Thousand Twenty Two

 

AN ACT relative to medical benefits payments by state retirees.

 

Be it Enacted by the Senate and House of Representatives in General Court convened:

 

1  Retired State Employees; Medical and Surgical Benefits.  Amend RSA 21-I:30, V(a) to read as follows:

V.(a) Retirees shall be responsible for verification of eligibility by standard acceptable documentation determined by the department of administrative services. Verification documentation, if necessary, shall be [produced during a period of 60 days prior to retirement to 60 days after retirement] submitted prior to the effective date of coverage. Failure to file subsequent changes in eligibility within 60 days of occurrence may result in the permanent cessation of plan benefits.

2  Retired State Employees; Medical and Surgical Benefits; Billing.  Amend RSA 21-I:30, XIII(d) to read as follows:

(d) Collected amounts shall be deposited in the employee and retiree benefit risk management fund. Failure to remit payment of the contribution amount in full within 30 days of billing shall be grounds for terminating benefits, effective from the beginning of the billing period.  If a participant fails to remit payment in full [for participation within 30 days of billing, on the 30th day the participant shall be notified by certified mail, return receipt requested, that he or she shall remit payment to the department within 10 business days of receiving the letter or his or her benefits shall be terminated effective upon the 10th business day after receipt of the letter and that reenrollment shall be dependent upon payment of any outstanding contribution or other amount within 6 months of the termination date] on or before the invoice due date, the participant shall be notified by mail that his or her benefits shall be terminated effective the first day of the billing period.  The retiree and his or her dependents may reenroll in the plan with new coverage effective the first of the month following successful completion of reenrollment forms.

3  Retirement System; Medical Benefits Billing.  Amend RSA 100-A:54, III(c) to read as follows:

(c) The department of administrative services shall provide information as to the total monthly premium cost for each participant to the retirement system for purposes of calculating this deduction. Deducted amounts, which shall be in addition to and notwithstanding any amounts payable by the retirement system pursuant to RSA 100-A:52, RSA 100-A:52-a, and RSA 100-A:52-b, shall be deposited in the employee and retiree benefit risk management fund. In the event the retiree's monthly allowance is insufficient to cover the certified contribution amount, the retirement system shall so notify the department of administrative services, which shall invoice and collect from the retiree and/or each applicable spouse the remaining contribution amount. Failure to remit payment of the contribution amount in full within 30 days of billing shall be grounds for terminating benefits, effective from the beginning of the billing period. [Reenrollment shall be dependent upon payment of any outstanding contribution or other amounts within 6 months of the termination date.]

The retiree and his or her dependents may reenroll in the plan with new coverage effective the first of the month following completion of reenrollment forms.  The department of administrative services shall provide notice of the termination of benefits as provided in RSA 21-I:30, XIII.

4  Effective Date.  This act shall take effect 60 days after its passage.

 

LBA

22-2941

Redraft 12/13/21

 

SB 356-FN- FISCAL NOTE

AS INTRODUCED

 

AN ACT relative to medical benefits payments by state retirees.

 

FISCAL IMPACT:      [ X ] State              [    ] County               [    ] Local              [    ] None

 

 

 

Estimated Increase / (Decrease)

STATE:

FY 2022

FY 2023

FY 2024

FY 2025

   Appropriation

$0

$0

$0

$0

   Revenue

$0

$0

$0

$0

   Expenditures

$0

Indeterminable

Indeterminable

Indeterminable

Funding Source:

  [ X ] General            [    ] Education            [    ] Highway           [    ] Other

 

 

 

 

 

METHODOLOGY:

This bill clarifies the Department of Administrative procedures for medical benefits payments of retired state employees.  

  • It requires verification documentation to be submitted prior to the effective date of coverage.
  • It changes the billing cycle and termination / reenrollment process as well as the time line for reenrollment.

 

The Department of Administrative Services (DAS) state this bill will have an indeterminable impact on State General Fund Expenditures.  The DAS indicates this bill helps the Department comply with Centers for Medicare and Medicaid Services eligibility and enrollment rules as it relates to Medicare.  The Department states this bill will decrease unnecessary costs and administration through the monthly direct billing process as well as minimizing costs for claims incurred during the unpaid benefit period.  The Department also notes there is a potential indeterminable claims savings and impact on future claims experience through timelier member enrollments / terminations.

 

It is assumed the fiscal impact will not occur until FY 2023.

 

AGENCIES CONTACTED:

Department of Administrative Services