PRINTER'S NO. 1812
No. 1206 Session of 2004
INTRODUCED BY WONDERLING, ORIE, WAGNER, COSTA, M. WHITE, D. WHITE, STOUT, MUSTO, ERICKSON, RHOADES, C. WILLIAMS, BOSCOLA, PIPPY, STACK, RAFFERTY, GREENLEAF AND KUKOVICH, AUGUST 11, 2004
REFERRED TO FINANCE, AUGUST 11, 2004
AN ACT 1 Amending Title 24 (Education) of the Pennsylvania Consolidated 2 Statutes, further providing for the definition of "eligible 3 annuitants" and for health insurance premium assistance. 4 The General Assembly of the Commonwealth of Pennsylvania 5 hereby enacts as follows: 6 Section 1. The definition of "eligible annuitants" in 7 section 8102 of Title 24 of the Pennsylvania Consolidated 8 Statutes is amended to read: 9 § 8102. Definitions. 10 The following words and phrases when used in this part shall 11 have, unless the context clearly indicates otherwise, the 12 meanings given to them in this section: 13 * * * 14 "Eligible annuitants." All current and prospective 15 annuitants with 24 1/2 or more eligibility points and all 16 current and prospective disability annuitants. Beginning January 17 1, 1995, "eligible annuitants" shall include members with 15 or
1 more eligibility points who terminated or who terminate school 2 service on or after attaining superannuation retirement age and 3 who are annuitants with an effective date of retirement after 4 superannuation age. Beginning January 1, 2005, "eligible 5 annuitants" shall include members with 15 or more eligibility 6 points who are annuitants with an effective date of retirement 7 before superannuation age and who have attained 65 years of age. 8 * * * 9 Section 2. Section 8509 of Title 24 is amended to read: 10 § 8509. Health insurance premium assistance program. 11 (a) Contribution rate.--[Effective July 1, 1991, the 12 premium] 13 (1) Effective July 1, 1991, the premium assistance 14 contribution rate established in section 8328(f) (relating to 15 actuarial cost method) shall be sufficient to provide 16 reserves in the health insurance account as of June 30, 1992, 17 for the payment of premium assistance set forth in subsection 18 (b) during the fiscal year beginning July 1, 1992, for all 19 eligible annuitants who by that date elect to be 20 participating eligible annuitants and all additional eligible 21 annuitants who elect to be participating eligible annuitants 22 in the health insurance premium assistance program during the 23 fiscal year beginning July 1, 1992. For each fiscal year 24 beginning after July 1, 1991, the premium assistance 25 contribution rate shall be established to provide reserves 26 sufficient, when combined with unexpended amounts from the 27 reserves set aside the previous fiscal year for health 28 insurance assistance payments, to provide premium assistance 29 payments in the subsequent fiscal year for all participating 30 eligible annuitants. The board is authorized to expend an 20040S1206B1812 - 2 -
1 amount not to exceed 2% of the health insurance account each 2 year to pay for the direct expense of administering the 3 health insurance premium assistance program, which 4 expenditure may be included in the board's consideration when 5 it establishes the premium assistance contribution rate each 6 year. 7 (2) Effective January 1, 2005, the premium assistance 8 payments for annuitants under 65 years of age shall equal 28% 9 of the monthly premium amount charged by the health insurance 10 carrier approved by the board. Beginning at 65 years of age, 11 the premium assistance payments shall equal 65% of the 12 monthly premium amount charged by the health insurance 13 carrier approved by the board, plus 2% of the monthly premium 14 for each year after the annuitants attain 65 years of age, 15 but in no event shall the amount of premium assistance equal 16 more than 100% of the monthly premium amount. In determining 17 individual amounts of the premium assistance, the percentage 18 shall be applied to the lowest cost plan made available to 19 the annuitant by the health insurance carriers approved by 20 the board, but in no event shall the amount be less than that 21 provided during the previous plan year for annuitants 66 22 years of age or older. Increases in premium assistance 23 payments for annuitants over 65 years of age shall be 24 implemented at the beginning of the health insurance 25 carriers' contract year coincident with or next following the 26 annuitants' dates of birth. 27 (b) Amount of premium assistance.--Participating eligible 28 annuitants shall receive premium assistance payments as provided 29 in paragraphs (1) and (2). Such payments shall be made by the 30 board to the participating eligible annuitants for their payment 20040S1206B1812 - 3 -
1 directly to their approved insurance carriers. Such payments may 2 also be paid by the board, at the board's discretion, directly 3 to the participating eligible annuitants' approved insurance 4 carriers. The board shall have the right to verify the 5 application and receipt of the payments by the participating 6 eligible annuitants and their approved insurance carriers. The 7 premium assistance payments are as follows: 8 (1) Effective July 1, 1992, $55 per month or the actual 9 monthly premium, whichever is less. 10 (2) Effective January 1, 2002, $100 per month or the 11 actual monthly premium, whichever is less. 12 (c) Participating eligible annuitants.--An eligible 13 annuitant may elect to participate in the health insurance 14 premium assistance program by filing an election to be covered 15 by a health insurance carrier approved by the board and to 16 participate in the health insurance premium assistance program. 17 Participation in the health insurance premium assistance program 18 shall begin upon the effective date of the health insurance 19 coverage provided by a health insurance carrier approved by the 20 board, but in no event before the effective date of retirement. 21 Section 3. This act shall take effect in 60 days. F14L24JAM/20040S1206B1812 - 4 -