Bill Summary for S 865 (2015-2016)

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Summary date: 

Jun 23 2016

Bill Information:

View NCGA Bill Details2015-2016 Session
Senate Bill 865 (Public) Filed Tuesday, May 10, 2016
AN ACT TO MAKE ADMINISTRATIVE CHANGES TO THE STATE HEALTH PLAN FOR TEACHERS AND STATE EMPLOYEES STATUTES, TO INCREASE THE NUMBER OF LOCAL GOVERNMENTS ABLE TO PARTICIPATE IN THE STATE HEALTH PLAN, AND TO MAKE CHANGES TO STATE HEALTH PLAN PREMIUMS PAID BY LOCAL GOVERNMENT EMPLOYEES.
Intro. by Sanderson.

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Bill summary

Senate committee substitute makes the following changes to the 1st edition.

Deletes the proposed changes to GS 135-48.23, concerning contracts to provide benefits.

Amends GS 135-48.47(b) concerning participation requirements for local governments in the State Health Plan (Plan), making organizational and clarifying changes, prohibiting participating local governments from charging employees more for their coverage than allowed under the set structure of the Plan. Also provides that local governments cannot charge premiums for an employee's dependents that exceed those set by the plan. 

Amends GS 135-48.47(c) to allow local governments to elect to participate in the State Health Plan until the number of employees and dependents of employees of local governments enrolled in the Plan reaches 16,000 (set at 20,000 in previous edition) after which time no additional local governments may join the Plan. Sets out a schedule for increasing and enrolling local governments into the Plan, including allowing local governments to be admitted through June 30, 2017, until the number of local government employees and dependents reach 13,500, then through January 31, 2018, allowing the same to enroll plus the estimated number of employees and dependents that completed the Plan's Notice of Participation Sheet prior to April 1, 2016, until enrollment reaches 16,000. After that only the limitations of GS 135-48.47 apply.

Amends deadline date in proposed GS 135-48.47(d) for withdrawal from the Plan by a local government effective January 1, 2017, now requiring withdrawal notices to be made no later than September 15, 2016 (was, October 1, 2016). 

Amends GS 58-3-167(a)(1) to clarify that the definition for Health Benefit Plan for the purposes of this section does not include or mean any plan implemented or administered by the State Health Plan for Teachers and State Employees. 

Amends the effective date provisions of the act, providing that the changes made to Section 1, GS 135-48.47(b) concerning premiums, is effective January 1, 2017, applying to premiums paid on or after that date. The remainder of the act is effective when it becomes law.