Delaware-2015-HB71-Draft

WHEREAS, approximately 124,619 individuals receive health care coverage through benefit plans supplied by the State; and

WHEREAS, the ability to sustain these health care benefits relies on the integrity of the State's self-insurance fund; and

WHEREAS. rising costs have significantly impacted the solvency of this fund and increased the burden on the State of Delaware; and

WHEREAS, the General Assembly was not made aware of the fund's deficiencies in a timely fashion; and

WHEREAS, it is the collective will of the General Assembly to receive periodic updates regarding the financial status of the self-insurance fund so that it may effectively partner with the Executive Branch to address challenges and craft solutions.

NOW, THEREFORE;

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE:

Section 1.Amend §9602, Chapter 96, Title 29 of the Delaware Code by making deletions as shown by strike through and insertions as shown by underline as follows:

§9602 State Employee Benefits Committee.

(a) There is hereby established a State Employee Benefits Committee ("Committee"). The Committee shall be comprised of the Lieutenant Governor, the Insurance Commissioner, the Chief Justice of the Supreme Court, the State Treasurer, the Director of the Office of Management and Budget, the Controller General, the Secretary of Finance and the Secretary of Health and Social Services, or their designees. In addition, the Governor shall appoint 1 Committee member from the following persons: The President of the Delaware State Education Association or his or her designee, the Executive Director of the American Federation of State County and Municipal Employees or his or her designee, the President of the Correctional Officers Association of Delaware or his or her designee, or the President of the Delaware State Troopers Association or his or her designee. The appointment term shall be for 3 years. An organizational representative appointed by the Governor, after serving a 3-year term, shall not serve another term until all the organizational representatives named in this subsection have served a 3-year term. The Director of the Office of Management and Budget shall chair the Committee.

(b) The State Employee Benefits Committee shall have the following powers, duties and functions:

(1) With the exception of deferred compensation pursuant to Chapter 60A of this title, and any other investment or retirement savings plan, control and management of all employee benefit coverages including health care insurance and blood bank, pursuant to Chapters 51 and 52 of this title; state employees group life insurance pursuant to Chapter 32 of Title 18; and all other currently existing and future employee benefits coverages, including but not limited to all forms of flexible benefits, dental, vision, prescription, long-term care and disability coverages.

(2) Selection of all carriers or third-party administrators necessary to provide coverages to State employees.

(3) Authority to contract on an insured or self insured basis.

(4) Authority to adopt rules and regulations for the general administration of the employee benefit coverages.

(5) Authority to make and enter into any and all contracts with any agency of the State, or any outside agency, for the purpose of assisting in the general administration of this section.

(c) All members of the Committee and all legal, actuarial and administrative personnel shall be entitled to reimbursement for those travel and other expenses made necessary by their official duties that are approved by the Benefits and Insurance Administrator.

(d) The Committee shall hold regular meetings at least once every 6 3 months, which meetings shall be open to the public in accordance with §10004 of this title.

(e) The Committee shall issue a report to the Governor and the General Assembly on or before the 10th day preceding the end of each fiscal quarter that shall include, at a minimum, all of the following information:

(1)Total of payments received by the self-insurance fund in the previous fiscal quarter.

(2)Total expenditures from the self-insurance fund in the previous fiscal quarter.

(3)The amount of any surplus or deficit recorded in the self-insurance fund in the previous fiscal quarter.

(4)The balance of any reserve held in the self-insurance fund at the end of the previous fiscal quarter.

(5)The amount of reserve funds expended in the previous fiscal quarter.

(6)An estimate of (1)-(5) of this subsection for the two fiscal quarters following the previous fiscal quarter.

SPONSOR:	Rep. Collins & Sen. McDowell;
	Reps. Hudson, Briggs King, Kenton, Spiegelman, Wilson, Yearick, Baumbach, Carson, Lynn, Osienski; Sens. Bonini, Ennis, Henry, Hocker, Lavelle, Lawson, Peterson, Richardson, Simpson, Townsend