Senate Bill No. 1289

Public Act No. 99-124

An Act Concerning the State Employee Health Plan.

Be it enacted by the Senate and House of Representatives in General Assembly convened:

Section 1. Subdivision (4) of section 38a-564 of the general statutes is repealed and the following is substituted in lieu thereof:

(4) "Small employer" means any person, firm, corporation, limited liability company, partnership or association actively engaged in business for at least three consecutive months who, on at least fifty per cent of its working days during the preceding twelve months, employed no more than fifty eligible employees, the majority of whom were employed within the state of Connecticut. In determining the number of eligible employees, companies which are affiliated companies, as defined in section 33-840, or which are eligible to file a combined tax return for purposes of taxation under chapter 208 shall be considered one employer. Eligible employees shall not include employees covered through the employer by health insurance plans or insurance arrangements issued to or in accordance with a trust established pursuant to collective bargaining subject to the federal Labor Management Relations Act. Except as otherwise specifically provided, provisions of sections 12-201, 12-211, 12-212a and 38a-564 to 38a-572, inclusive, which apply to a small employer shall continue to apply until the plan anniversary following the date the employer no longer meets the requirements of this definition. "Small employer" does not include a municipality procuring health insurance pursuant to section 5-259.

Sec. 2. Section 5-259 of the general statutes is amended by adding subsection (m) as follows:

(NEW) (m) The Comptroller may provide for coverage of employees of community action agencies, as defined in subsection (b) of section 17b-885, under the plan or plans procured under subsection (a) of this section, provided: (1) Participation by each such agency shall be on a voluntary basis; (2) where an employee organization represents employees in such agency, participation in a plan or plans to be procured under subsection (a) of this section shall be by mutual agreement of the agency and the employee organization only and neither party may submit the issue of participation to binding arbitration except by mutual agreement; (3) no group of employees shall be refused entry into the plan by reason of past or future health care costs or claim experience; (4) rates paid by the state for its employees under subsection (a) of this section are not adversely affected by this subsection; (5) administrative costs to the plan or plans provided under this subsection shall be paid by the participating agency at no additional cost to the state; and (6) participation in the plan or plans in an amount determined by the state shall be for the duration of the period of the plan or plans, or for such other period as mutually agreed upon by the agency and the Comptroller. Not later than February 1, 2001, and annually thereafter the Comptroller shall submit to the joint standing committee of the General Assembly having cognizance of matters relating to insurance and real estate a review of the coverage of community action agency employees under the state health plan.

Sec. 3. Subsection (i) of section 5-259 of the general statutes is repealed and the following is substituted in lieu thereof:

(i) The Comptroller may provide for coverage of municipal employees under the plan or plans procured under subsection (a) of this section, provided: (1) Participation by each municipal employer shall be on a voluntary basis; (2) where an employee organization represents employees in a municipality, participation in a plan or plans to be procured under subsection (a) of this section shall be by mutual agreement of the municipal employer and the employee organization only and neither party may submit the issue of participation to binding arbitration except by mutual agreement; (3) no group of employees shall be refused entry into the plan by reason of past or future health care costs or claim experience; (4) rates paid by the state for its employees under subsection (a) of this section are not adversely affected by this subsection; (5) administrative costs to the plan or plans provided under this subsection shall be paid by the participating municipality at no additional cost to the state; and (6) participation in the plan or plans in an amount determined by the state shall be for the duration of the period of the plan or plans, or for such other period as mutually agreed by the municipality and the Comptroller. For the purposes of this subsection, "municipality" [shall have the same meaning as provided in section 7-425] means any town, city, borough, school district, taxing district, fire district, district department of health, probate district, housing authority, regional work force development board established under section 31-3k, flood commission or authority established by special act, regional planning agency or transit district formed under chapter 103a.

Sec. 4. This act shall take effect July 1, 1999.

TOP