2019 -- S 0276

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LC001204

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2019

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A N   A C T

RELATING TO PUBLIC OFFICERS AND EMPLOYEES -- INSURANCE BENEFITS

     Introduced By: Senator Gayle L. Goldin

     Date Introduced: February 13, 2019

     Referred To: Senate Finance

     It is enacted by the General Assembly as follows:

     SECTION 1. Section 36-12-6 of the General Laws in Chapter 36-12 entitled "Insurance

Benefits" is hereby amended to read as follows:

     36-12-6. Authority to purchase group life, accidental death, long term health care,

and other insurance benefits.

     (a) The director of administration, or any employee of the department of administration

designated by the director as his or her agent, is hereby authorized, empowered, and directed to

contract with one or more insurance companies duly licensed by this state for the purchase of one

or more contracts providing for group life, accidental death, long term health care and other

insurance benefits in conformity with the provisions of §§ 36-12-6 -- 36-12-14, to purchase

contracts of insurance and to administer all provisions of §§ 36-12-6 -- 36-12-14. With regard to a

contract for long-term health care providing health services pursuant to § 36-12-2, the insurance

company selected must have its headquarters located in the state. Before entering into any

insurance contract under this chapter, the director shall invite proposals from such qualified

insurers as in his or her opinion would desire to accept any part of the insurance coverage

authorized by §§ 36-12-6 -- 36-12-14 including hospital care and surgical-medical services with

the specific condition that the benefits and services provided by the carrier(s) will be substantially

equivalent to those set forth in any collective bargaining agreements executed between the state

of Rhode Island and authorized representatives of the unions representing state employees or the

health care coverage presently being provided.

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

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

eligible for those benefits.

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

covered by the new policy.

     (d) The director may arrange with the company or companies from which the policy or

policies of insurance authorized herein are purchased to reinsure portions of any contract or

contracts of insurance with other insurance companies duly licensed in this state which elect to

enter into contracts of reinsurance and are legally competent to do so. The director may annually

redetermine the amount or amounts of coverage to be allocated to reinsuring companies in

advance of any contract year after the first year.

     (e) The director may designate one or more of those insurance companies as the

administering company or companies.

     (f) Each employee who is covered under any contract or contracts shall receive a

certificate setting forth the benefits to which the employee and his or her dependents are entitled

thereunder, to whom benefits shall be payable, to whom claims should be submitted, and

summarizing the provisions of the contract principally affecting the employee and his or her

dependents.

     (g) The director may, on June 30, 1961, or at the end of any fiscal year thereafter,

discontinue any insurance contract or contracts he or she has purchased from any corporation or

corporations and replace it or them with a contract or contracts in any other corporation or

corporations meeting the requirements of §§ 36-12-6 -- 36-12-14.

     SECTION 2. This act shall take effect upon passage and shall apply to any long-term

health care policy purchased after the expiration date of the current long-term health policy.

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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 require the director of administration to purchase a contract for long-term

health care benefits covering state employees from a health insurer with its headquarters located

in this state.

     This act would take effect upon passage and would apply to any long-term health care

policy purchased after the expiration date of the current long-term health policy.

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