1997 Session

Budget Amendments - HB1600 (Committee Approved)

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Health Insurance

Item 535 #1h

Item 535 #1h

First Year - FY1997 Second Year - FY1998
Central Appropriations
Central Appropriations FY1997 $553,192 FY1998 $3,295,962 GF

Page 362, line 44, strike "$59,696,943" and insert "$60,250,135".
Page 362, line 44, strike "$59,696,943" and insert "$62,992,905".
Page 363, after line 27, insert:
"E.1. The end of the plan year for the state health insurance program shall be extended from December 31, 1997 to June 30, 1998.
2. Effective May 1, 1997, the Department of Personnel and Training shall institute a surcharge on the employer share of premiums paid into the Health Insurance Fund for health benefits coverage provided under the Commonwealth's non-Medicare, self-insured health benefits plans.  Such surcharge shall be a) calculated as a constant percentage increase on the total premium, as in existence on January 1, 1997, for each type of coverage provided to active employees, b) added to the employer share of such premium, and c) structured so as to generate an amount estimated at $27,254,815 from all employers and fund sources by June 30, 1998.
3. No surcharge shall be added to the premium paid by active employees or retirees enrolled in the affected non-Medicare, self-insured health benefits plans.
4. a) Included in the appropriation for this item is $553,192 the first year and $3,295,962 the second year to pay the cost of the surcharge provided for in paragraph E.2, of this item, on behalf of general fund employees of a) agencies with authorized employment levels, as set out in this act, of fifty FTE or less, and b) Educational and General programs of the institutions of higher education.
b) Such agency general fund balances as may be required, which are not otherwise obligated by this act, for the years ended June 30, 1996, and June 30, 1997, are hereby reappropriated to state agencies and institutions for the purposes of paragraph E.2. of this item.
c) Such nongeneral fund revenues and balances as may be required to pay the cost of the surcharge provided for in paragraph E.2. of this item are hereby appropriated.
5. A joint subcommittee composed of the members of the Compensation and Retirement Subcommittee of the House Appropriations Committee and the Compensation and General Government Subcommittee of the Senate Finance Committee, and such other members as the chairmen may appoint, is hereby established to study the long-term funding needs of the Commonwealth's non-Medicare, self-insured health benefits plans.  This joint subcommittee shall report its findings and recommendations to the Chairmen of the House Appropriations  Committee and the Senate Finance Committee in time for consideration at the 1998 Session of the General Assembly."

(This amendment establishes a premium surcharge on the employer paid health insurance premiums in order to provide sufficient cash to cover the projected losses through the end of the biennium.)