PRINTER'S NO. 517
No. 473 Session of 2007
INTRODUCED BY WONDERLING, RHOADES, FONTANA, BOSCOLA, ROBBINS, C. WILLIAMS, STOUT, ERICKSON, RAFFERTY, COSTA, O'PAKE, PIPPY, STACK, ORIE, MELLOW, M. WHITE AND LOGAN, MARCH 15, 2007
REFERRED TO FINANCE, MARCH 15, 2007
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 18 more eligibility points who terminated or who terminate school
1 service on or after attaining superannuation retirement age and 2 who are annuitants with an effective date of retirement after 3 superannuation age. Beginning January 1, 2008, "eligible 4 annuitants" shall include members with 15 or more eligibility 5 points who are annuitants with an effective date of retirement 6 before superannuation age and who have attained 65 years of age. 7 * * * 8 Section 2. Section 8509 of Title 24 is amended to read: 9 § 8509. Health insurance premium assistance program. 10 (a) Contribution rate.--[Effective July 1, 1991, the 11 premium] 12 (1) Effective July 1, 1991, the premium assistance 13 contribution rate established in section 8328(f) (relating to 14 actuarial cost method) shall be sufficient to provide 15 reserves in the health insurance account as of June 30, 1992, 16 for the payment of premium assistance set forth in subsection 17 (b) during the fiscal year beginning July 1, 1992, for all 18 eligible annuitants who by that date elect to be 19 participating eligible annuitants and all additional eligible 20 annuitants who elect to be participating eligible annuitants 21 in the health insurance premium assistance program during the 22 fiscal year beginning July 1, 1992. For each fiscal year 23 beginning after July 1, 1991, the premium assistance 24 contribution rate shall be established to provide reserves 25 sufficient, when combined with unexpended amounts from the 26 reserves set aside the previous fiscal year for health 27 insurance assistance payments, to provide premium assistance 28 payments in the subsequent fiscal year for all participating 29 eligible annuitants. The board is authorized to expend an 30 amount not to exceed 2% of the health insurance account each 20070S0473B0517 - 2 -
1 year to pay for the direct expense of administering the 2 health insurance premium assistance program, which 3 expenditure may be included in the board's consideration when 4 it establishes the premium assistance contribution rate each 5 year. 6 (2) Effective January 1, 2008, the premium assistance 7 payments for annuitants under 65 years of age shall equal 28% 8 of the monthly premium amount charged by the health insurance 9 carrier approved by the board. Beginning at 65 years of age, 10 the premium assistance payments shall equal 65% of the 11 monthly premium amount charged by the health insurance 12 carrier approved by the board, plus 2% of the monthly premium 13 for each year after the annuitants attain 65 years of age, 14 but in no event shall the amount of premium assistance equal 15 more than 100% of the monthly premium amount. In determining 16 individual amounts of the premium assistance, the percentage 17 shall be applied to the lowest cost plan made available to 18 the annuitant by the health insurance carriers approved by 19 the board, but in no event shall the amount be less than that 20 provided during the previous plan year for annuitants 66 21 years of age or older. Increases in premium assistance 22 payments for annuitants over 65 years of age shall be 23 implemented at the beginning of the health insurance 24 carriers' contract year coincident with or next following the 25 annuitants' dates of birth. 26 (b) Amount of premium assistance.--Participating eligible 27 annuitants shall receive premium assistance payments as provided 28 in paragraphs (1) and (2). Such payments shall be made by the 29 board to the participating eligible annuitants for their payment 30 directly to their approved insurance carriers. Such payments may 20070S0473B0517 - 3 -
1 also be paid by the board, at the board's discretion, directly 2 to the participating eligible annuitants' approved insurance 3 carriers. The board shall have the right to verify the 4 application and receipt of the payments by the participating 5 eligible annuitants and their approved insurance carriers. The 6 premium assistance payments are as follows: 7 (1) Effective July 1, 1992, $55 per month or the actual 8 monthly premium, whichever is less. 9 (2) Effective January 1, 2002, $100 per month or the 10 actual monthly premium, whichever is less. 11 (c) Participating eligible annuitants.--An eligible 12 annuitant may elect to participate in the health insurance 13 premium assistance program by filing an election to be covered 14 by a health insurance carrier approved by the board and to 15 participate in the health insurance premium assistance program. 16 Participation in the health insurance premium assistance program 17 shall begin upon the effective date of the health insurance 18 coverage provided by a health insurance carrier approved by the 19 board, but in no event before the effective date of retirement. 20 Section 3. This act shall take effect in 60 days. A18L24MSP/20070S0473B0517 - 4 -