Session of 1999
         
HOUSE BILL No. 2047
         
By Representatives P. Long and Faber, Aday, Bethell, Compton, Dahl,
          
McCreary, Shultz and Vining
          
1-20
          
10             AN  ACT relating to the Kansas state employees health care commission;
11             providing a separate health benefits program for public school districts;
12             amending K.S.A. 75-6504, 75-6505, 75-6506, 75-6508, 75-6509, 75-
13             6510 and 75-6511 and repealing the existing sections.
14      
15       Be it enacted by the Legislature of the State of Kansas:
16             New Section  1. As used in this section:
17             (a) "Commission" means the Kansas state employees health care
18       commission established pursuant to K.S.A. 75-6502 and amendments
19       thereto.
20             (b) "Public school district" means any school district organized and
21       operating under the laws of the state.
22             (c) "Person qualified to participate in the public school district health
23       care benefits program" means any persons designated by the Kansas state
24       employees health care commission as eligible to participate in the public
25       school district health care benefits program under this act.
26             New Sec.  2. (a) Subject to the provision of appropriation acts, the
27       Kansas state employees health care commission shall establish and ad-
28       minister a public school district health care benefits program which shall
29       be separate from the state health care benefits program provided for in
30       K.S.A. 75-6501 et seq., and amendments thereto.
31             (b) The public school district health care benefits program may pro-
32       vide benefits for persons qualified to participate in the program for hos-
33       pitalization, medical services, surgical services, nonmedical remedial care
34       and treatment rendered in accordance with a religious method of healing
35       and other health services. The program may include such provisions as
36       are established by the Kansas state employees health care commission,
37       including, but not limited to, qualifications for benefits, services covered,
38       schedules and graduation of benefits, conversion privileges, deductible
39       amounts, limitations on eligibility for benefits by reason of termination of
40       employment or other change of status, leaves of absence, military service
41       or other interruptions in service and other reasonable provisions as may
42       be established by the commission.
43             (c) The Kansas state employees health care commission shall desig-

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  1       nate by rules and regulations those persons who are qualified to partici-
  2       pate in the public school district health care benefits program, including
  3       active and retired public officers and employees and their dependents, as
  4       defined by rules and regulations of the commission. In designating per-
  5       sons qualified to participate in the public school district health care ben-
  6       efits program, the commission may establish such conditions, restrictions,
  7       limitations and exclusions as the commission deems reasonable.
  8             (d) Any public school district may elect to participate in the public
  9       school district health care benefits program by filing a resolution approved
10       by the governing body of the public school district. No public school
11       district shall participate in the public school district health care benefits
12       program except by the adoption of a resolution therefor. Upon the filing
13       of a certified copy of such resolution with the Kansas state employees
14       health care commission, an election pursuant to this section shall be ir-
15       revocable and the public school district shall become a participant in the
16       public school district health care benefits program on August 1 of the
17       year immediately following the filing of such election with the Kansas
18       state employees health care commission.
19             (e) The public school district health care benefits program estab-
20       lished under this act shall be effective on and after August 1, 2000.
21             New Sec.  3. (a) The participation of a person qualified to participate
22       in the public school district health care benefits program shall be volun-
23       tary, and the cost of the public school district health care benefits program
24       for such person shall be established by the Kansas state employees health
25       care commission. A person on the payroll of a public school district which
26       has been approved by the Kansas state health care commission as a par-
27       ticipant in the public school district health care benefits program pursuant
28       to section 2 may elect to become a member of the public school district
29       health care benefits program by filing a written election with the Kansas
30       state employees health care commission in accordance with rules and
31       regulations of the commission.
32             (b) Periodic deductions from public school district payrolls may be
33       made in accordance with procedures prescribed by the secretary of ad-
34       ministration to cover the costs of the public school district health care
35       benefits program payable by persons who are on the public school district
36       payroll when authorized by such persons.
37             (c) For persons qualified to participate in the public school district
38       health care benefits program who are employed by the public school
39       district, periodic deductions from payrolls of the public school district
40       shall be made to cover the costs of the public school district health care
41       benefits program payable by such persons when authorized by such per-
42       sons. All such moneys deducted from payrolls shall be remitted to the
43       Kansas state employees health care commission in accordance with the

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  1       directions of the commission.
  2             (d) Each public school district which has on its payroll persons par-
  3       ticipating in the public school district health care benefits program shall
  4       pay from any moneys available to the public school district for such pur-
  5       pose an amount specified by the Kansas state employees health care com-
  6       mission. All such payments shall continue on the behalf of employees
  7       otherwise eligible for participation in the public school district health care
  8       benefits program in accordance with the continuation provisions of the
  9       federal family and medical leave act of 1993, P.L. 103-03, 107 Stat. 6.
10       The commission may charge each public school district a uniform amount
11       per person as the cost to the public school district for the public school
12       district's contribution for persons participating in the public school district
13       health care benefits program. Such amounts may include the costs of
14       administering the program.
15             (e) Payments from public funds for coverage under the public school
16       district health care benefits program for persons participating in that pro-
17       gram shall not be deemed a payment or supplement of wages of such
18       person notwithstanding any other provision of law or rules and regulations
19       relating to wages of any such person.
20             Sec.  4. K.S.A. 75-6504 is hereby amended to read as follows: 75-
21       6504. (a) Subject to the provisions of appropriation acts relating thereto,
22       in developing and providing for the implementation of a state health care
23       benefits program and a public school district health care benefits program
24       the Kansas state employees health care commission may:
25             (1) Enter into one or more group insurance contracts to provide cov-
26       erage for all or part of the state health care benefits program and the
27       public school district health care benefits program;
28             (2) establish a self-funded program on an actuarially sound basis to
29       provide coverage for all or part of the state health care benefits program
30       and the public school district health care benefits program and administer
31       the self-funded program or contract for all or part of the administration
32       of the self-funded program;
33             (3) provide for the self-administration of all or part of the state health
34       care benefits program and the public school district health care benefits
35       program;
36             (4) enter into contracts with one or more health care providers for
37       the provision of health care services;
38             (5) enter into contracts in accordance with the provisions of K.S.A.
39       75-6505, and amendments thereto, with one or more health maintenance
40       organizations for the provision of health care services; or
41             (6) any combination of the authority granted under this subsection
42       (a).
43             (b) The Kansas state employees health care commission is hereby

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  1       authorized to negotiate and enter into contracts with qualified insurers,
  2       health maintenance organizations and other contracting parties for the
  3       purpose of establishing the state health care benefits program and the
  4       public school district health care benefits program, including the acqui-
  5       sition of consulting and other services necessary therefor. The commis-
  6       sion shall advertise for proposals, shall negotiate with not less than three
  7       firms or other parties submitting proposals, and shall select from among
  8       those submitting proposals the firm or other contracting party to contract
  9       with for the purpose of entering into contracts for services related to the
10       state health care benefits program and the public school district health
11       care benefits program.
12             (c) The provisions of K.S.A. 75-4317 through 75-4320a, and amend-
13       ments thereto, shall not apply to meetings of the Kansas state employees
14       health care commission when the commission meets solely for the pur-
15       pose of:
16             (1) Discussing and preparing strategies for negotiations for such plans
17       and contracts; and
18             (2) considering health care matters relating to individually identifia-
19       ble plan participants.
20             (d) Contracts entered into pursuant to this section, K.S.A. 75-6505
21       or 75-6510, and amendments thereto, shall not be subject to the provi-
22       sions of K.S.A. 75-3738 to 75-3740, inclusive, and amendments thereto.
23       Such contracts may be for terms of not more than three years and may
24       be renegotiated and renewed. All such contracts shall be subject to the
25       limits of appropriations made or available therefor and subject to the
26       provisions of appropriations acts relating thereto.
27             Sec.  5. K.S.A. 75-6505 is hereby amended to read as follows: 75-
28       6505. The Kansas state employees health care commission, in accordance
29       with the provisions of K.S.A. 75-6504, may contract to provide health care
30       services of a health maintenance organization for persons qualified to
31       participate in the state health care benefits program and the public school
32       district health care benefits program. The contract shall provide that cov-
33       erage under the contract is applicable to those persons qualified to par-
34       ticipate in the state health care benefits program and the public school
35       district health care benefits program as the commission determines fea-
36       sible. This coverage may be available to such qualified persons as an
37       alternative to other benefits under the state health care benefits program
38       and the public school district health care benefits program or may be part
39       of the benefits provided to such persons under the program. The contract
40       may include services for spouses and dependents of members at rates
41       established in accordance with such contract. A contract to provide health
42       care services of a health maintenance organization under this section shall
43       be construed to be part of the state health care benefits program or the

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  1       public school district health care benefits program, as applicable.
  2             Sec.  6. K.S.A. 75-6506 is hereby amended to read as follows: 75-
  3       6506. (a) The participation of a person qualified to participate in the state
  4       health care benefits program shall be voluntary, and the cost of the state
  5       health care benefits program for such person shall be established by the
  6       Kansas state employees health care commission.
  7             (b) Periodic deductions from state payrolls may be made in accord-
  8       ance with procedures prescribed by the secretary of administration to
  9       cover the costs of the state health care benefits program payable by per-
10       sons who are on the state payroll when authorized by such persons. Any
11       such periodic payroll deductions in effect on an implementation date for
12       biweekly payroll periods shall be collected in the manner prescribed by
13       the secretary of administration.
14             (c) In the event that the Kansas state employees health care com-
15       mission designates by rules and regulations a group of persons on the
16       payroll of a county, township, city, special district or other local govern-
17       mental entity, public school district, licensed child care facility operated
18       by a not-for-profit corporation providing residential group foster care for
19       children and receiving reimbursement for all or part of such care from
20       the department of social and rehabilitation services, nonprofit community
21       mental health center, as provided in K.S.A. 19-4001 et seq. and amend-
22       ments thereto, nonprofit community facility for the mentally retarded, as
23       provided in K.S.A. 19-4001 et seq. and amendments thereto, or nonprofit
24       independent living agency, as defined in K.S.A. 65-5101 and amendments
25       thereto, as qualified to participate in the state health care benefits pro-
26       gram, periodic deductions from payrolls of the local governmental entity,
27       public school district, licensed child care facility operated by a not-for-
28       profit corporation providing residential group foster care for children and
29       receiving reimbursement for all or part of such care from the department
30       of social and rehabilitation services, nonprofit community mental health
31       center, as provided in K.S.A. 19-4001 et seq. and amendments thereto,
32       nonprofit community facility for the mentally retarded, as provided in
33       K.S.A. 19-4001 et seq. and amendments thereto, or nonprofit independ-
34       ent living agency, as defined in K.S.A. 65-5101 and amendments thereto,
35       may be made to cover the costs of the state health care benefits program
36       payable by such persons when authorized by such persons. All such mon-
37       eys deducted from payrolls shall be remitted to the Kansas state employ-
38       ees health care commission in accordance with the directions of the
39       commission.
40             Sec.  7. K.S.A. 75-6508 is hereby amended to read as follows: 75-
41       6508. (a) (1) Each state agency which has on its payroll persons partici-
42       pating in the state health care benefits program shall pay from any moneys
43       available to the agency for such purpose an amount specified by the Kan-

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  1       sas state employees health care commission, including any amounts pre-
  2       scribed under a cafeteria plan established under K.S.A. 75-6512, and
  3       amendments thereto. All such payments shall continue on the behalf of
  4       employees otherwise eligible for participation in the state health care
  5       benefits program in accordance with the continuation provisions of the
  6       federal family and medical leave act of 1993, P.L. 103-03, 107 Stat. 6.
  7       The commission may charge each state agency a uniform amount per
  8       person as the cost to the agency for the state's contribution for persons
  9       participating in the state health care benefits program. Such amounts may
10       include the costs of administering the program.
11             (2) In the event that the Kansas state employees health care com-
12       mission designates by rules and regulations a group of persons on the
13       payroll of a county, township, city, special district or other local govern-
14       mental entity, public school district, licensed child care facility operated
15       by a not-for-profit corporation providing residential group foster care for
16       children and receiving reimbursement for all or part of such care from
17       the department of social and rehabilitation services, nonprofit community
18       mental health center, as provided in K.S.A. 19-4001 et seq., and amend-
19       ments thereto, nonprofit community facility for the mentally retarded, as
20       provided in K.S.A. 19-4001 et seq., and amendments thereto, or nonprofit
21       independent living agency, as defined in K.S.A. 65-5101, and amend-
22       ments thereto, as qualified to participate in the state health care benefits
23       program, each local governmental entity, public school district, licensed
24       child care facility operated by a not-for-profit corporation providing res-
25       idential group foster care for children and receiving reimbursement for
26       all or part of such care from the department of social and rehabilitation
27       services, nonprofit community mental health center, as provided in K.S.A.
28       19-4001 et seq., and amendments thereto, nonprofit community facility
29       for the mentally retarded, as provided in K.S.A. 19-4001 et seq., and
30       amendments thereto, or nonprofit independent living agency, as defined
31       in K.S.A. 65-5101, and amendments thereto, which has on its payroll
32       persons participating in the state health care benefits program shall pay
33       from any moneys available to the local governmental entity, public school
34       district, licensed child care facility operated by a not-for-profit corpora-
35       tion providing residential group foster care for children and receiving
36       reimbursement for all or part of such care from the department of social
37       and rehabilitation services, nonprofit community mental health center, as
38       provided in K.S.A. 19-4001 et seq., and amendments thereto, nonprofit
39       community facility for the mentally retarded, as provided in K.S.A. 19-
40       4001 et seq., and amendments thereto, or nonprofit independent living
41       agency, as defined in K.S.A. 65-5101, and amendments thereto, for such
42       purpose an amount specified by the commission. The commission may
43       charge each local governmental entity, public school district, licensed

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  1       child care facility operated by a not-for-profit corporation providing res-
  2       idential group foster care for children and receiving reimbursement for
  3       all or part of such care from the department of social and rehabilitation
  4       services, nonprofit community mental health center, as provided in K.S.A.
  5       19-4001 et seq., and amendments thereto, nonprofit community facility
  6       for the mentally retarded, as provided in K.S.A. 19-4001 et seq., and
  7       amendments thereto, or nonprofit independent living agency, as defined
  8       in K.S.A. 65-5101, and amendments thereto, a uniform amount per per-
  9       son as the cost to the local governmental entity, public school district,
10       licensed child care facility operated by a not-for-profit corporation pro-
11       viding residential group foster care for children and receiving reimburse-
12       ment for all or part of such care from the department of social and re-
13       habilitation services, nonprofit community mental health center, as
14       provided in K.S.A. 19-4001 et seq., and amendments thereto, nonprofit
15       community facility for the mentally retarded, as provided in K.S.A. 19-
16       4001 et seq., and amendments thereto, or nonprofit independent living
17       agency, as defined in K.S.A. 65-5101, and amendments thereto, for the
18       contribution of the local governmental entity, public school district, li-
19       censed child care facility operated by a not-for-profit corporation provid-
20       ing residential group foster care for children and receiving reimburse-
21       ment for all or part of such care from the department of social and
22       rehabilitation services, nonprofit community mental health center, as pro-
23       vided in K.S.A. 19-4001 et seq., and amendments thereto, nonprofit com-
24       munity facility for the mentally retarded, as provided in K.S.A. 19-4001
25       et seq., and amendments thereto, or nonprofit independent living agency,
26       as defined in K.S.A. 65-5101, and amendments thereto, for persons par-
27       ticipating in the state health care benefits program. Such amounts may
28       include the costs of administering the program.
29             (b) Payments from public funds for coverage under the state health
30       care benefits program for persons participating in that program shall not
31       be deemed a payment or supplement of wages of such person notwith-
32       standing any other provision of law or rules and regulations relating to
33       wages of any such person.
34             Sec.  8. K.S.A. 75-6509 is hereby amended to read as follows: 75-
35       6509. Commencing with the regular session of the legislature in 1985 and
36       with each regular session of the legislature thereafter, the Kansas state
37       employees health care commission shall submit to the president of the
38       senate and to the speaker of the house of representatives, on the day the
39       governor's budget report is submitted to the legislature, recommenda-
40       tions with respect to the state health care benefits program together with
41       estimates of the cost of the program proposed by the commission, in-
42       cluding a five-year projection of the cost of the program. Together with
43       the recommendations submitted, the commission shall include alterna-

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  1       tives for cost containment and benefit coverage for qualified persons for
  2       both the proposed program and the five-year projected program. In ad-
  3       dition, commencing with the regular session of the legislature in 2000 and
  4       with each regular session thereafter, the Kansas state employees health
  5       care commission shall submit to the president of the senate and to the
  6       speaker of the house of representatives, on or before the first day of the
  7       regular legislative session in 2000, and each regular session of the legis-
  8       lature thereafter, recommendations with respect to the public school dis-
  9       trict health care benefits program. The commission shall also submit any
10       recommendations for legislation with respect to the state health care ben-
11       efits program and the public school district health care benefits program.
12             Sec.  9. K.S.A. 75-6510 is hereby amended to read as follows: 75-
13       6510. (a) In exercising and performing the powers, duties and functions
14       prescribed by K.S.A. 75-6501 to 75-6511, inclusive, and amendments
15       thereto, the Kansas state employees health care commission may adopt
16       rules and regulations and enter into such contracts as may be necessary.
17             (b) The Kansas state employees health care commission may establish
18       an advisory committee to advise the commission on matters relating to
19       health care benefits of state officers and employees and to persons qual-
20       ified to participate in the public school district health care benefits pro-
21       gram and to assist the commission in the development of policy with
22       respect to such benefits.
23             (c) The Kansas state employees health care commission shall main-
24       tain an ongoing study and review of the state health care benefits program
25       and the public school district health care benefits program in order to
26       make necessary improvements therein and to make recommendations
27       thereon under K.S.A. 75-6509.
28             Sec.  10. K.S.A. 75-6511 is hereby amended to read as follows: 75-
29       6511. (a) Except as provided in subsection (b), the director of accounts
30       and reports shall make periodic deductions from state retirement or other
31       benefit payments to retired state officers and employees and other per-
32       sons who are qualified to participate in the state health care benefits
33       program for the costs of the state health care benefits program which are
34       payable by such retired state officers and employees and other persons.
35             (b) No deductions shall be made under this section in cases (1) where
36       the retired state officer or employee or retired public school district em-
37       ployee participating in the public school district health care benefits pro-
38       gram or other person submits a written request in accordance with pro-
39       cedures prescribed by the commission that the deductions not be made,
40       or (2) where the commission has directed that the deductions not be
41       made.
42             (c) No deductions made under this section shall be construed to be
43       an assignment of any annuity, benefits, funds, property or rights of any

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  1       person under K.S.A. 20-2618, 74-4923 or 74-49,105 and amendments to
  2       these sections.
  3             (d) Except as provided in subsection (b), periodic deductions may be
  4       made from public school district retirement or other benefit payments to
  5       retired employees of public school districts who are qualified to partici-
  6       pate in the public school district health care benefits program for the costs
  7       of the public school district health care benefits program which are pay-
  8       able by such retired public school district employees. 
  9       Sec.  11. K.S.A. 75-6504, 75-6505, 75-6506, 75-6508, 75-6509, 75-
10       6510 and 75-6511 are hereby repealed.
11        Sec.  12. This act shall take effect and be in force from and after its
12       publication in the statute book.