HP0324, LD 415, item 1, An Act To Enhance the Retired County and Municipal Law Enforcement Officers and Municipal Firefighters Health Insurance Program

An Act To Enhance the Retired County and Municipal Law Enforcement Officers and Municipal Firefighters Health Insurance Program

Be it enacted by the People of the State of Maine as follows:

Sec. 1. 5 MRSA §285, sub-§11-A, as enacted by PL 2005, c. 636, Pt. A, §2, is amended to read:

11-A. Coverage for retired law enforcement officers and firefighters. A retired county or municipal law enforcement officer or retired municipal firefighter, as defined in section 286-M, subsection 2, who participates in an employer-sponsored retirement program and, prior to July 1, 2007, was enrolled in a self-insured health benefits plan offered by the employing county or municipality may, if the requirements of this subsection are met, enroll in a group health plan administered pursuant to this section that provides coverage for the retired county or municipal law enforcement officer or retired municipal firefighter effective no earlier than July 1, 2007.

A. A retiree who fails to enroll in a group health plan pursuant to this subsection is not otherwise eligible to enroll in such a plan and is not eligible for the premium subsidy provided pursuant to this subsection for enrollment in any other health plan. Retirees may enroll themselves, their spouses or their dependents in a group health plan during the following time periods, as applicable.

(1) When the effective date of retirement from the county or municipality is on or before May 1, 2007, the retiree must enroll in the plan before July 1, 2007.

(2) When the effective date of retirement from the county or municipality is after May 1, 2007 but before January 1, 2020, the retiree must enroll in the plan no later than 60 days following the effective date of retirement from the county or municipality.

(3) Notwithstanding the requirements of subparagraphs (1) and , (2) and (4), when the retiree, the retiree's spouse or the retiree's dependent experiences an involuntary loss of other health insurance coverage carried as of July 1, 2007 or 60 days following the date of the retiree's retirement, whichever is later, the retiree may elect to enroll in the plan no later than 60 days after the effective date of the loss of that coverage. Involuntary loss of coverage does not include a loss of coverage arising as a result of nonpayment of premiums.

(4) When the effective date of retirement from the county or municipality is on or after January 1, 2020, the retiree must enroll in the plan no later than 60 days following the effective date of retirement from the county or municipality. Retirees may also enroll their spouses or their dependents in the group health plan as applicable.

B. Eligible persons enrolling in a group health plan in which the retiree enrolls pursuant to this subsection are responsible for the premium payment associated with participation in the plan to the extent such an obligation exists following application of any premium subsidy. Failure to remit premium payments in the manner required by the administration policies of the group health plan must result in disenrollment from the plan.

C. The State shall pay a premium subsidy that equals the dollar amount equivalent to the highest premium subsidy provided in accordance with section 286-M, subsection 6 or 45% of the cost of the retiree's share of the individual premium for the standard plan identified and offered under the group health insurance plan in which the retiree enrolls pursuant to this subsection, whichever is less. For retirees enrolled in the plan on or after January 1, 2020, the State shall pay 100% of the cost of the retiree's share of the individual premium for the standard plan identified and offered under the group health insurance plan in which the retiree is enrolled pursuant to this subsection. A retiree electing to enroll a spouse or dependent in the plan is responsible for payment of 100% of the cost of such coverage, in addition to that portion of the retiree's individual premium cost not contributed by the State.

Sec. 2. 5 MRSA §286-M, sub-§3, ¶A, as enacted by PL 2005, c. 636, Pt. A, §3 and amended by PL 2007, c. 58, §3, is further amended to read:

A. The person must:

(1) Be at least 50 years of age ; except, if the person is less than 50 years of age, the person must have at least 25 years of service in a position as a county or municipal law enforcement officer or a municipal firefighter and have participated in the special consolidation retirement plan from the Maine Public Employees Retirement System;

(2) Be a retired county or municipal law enforcement officer or a retired municipal firefighter;

(3) Have, while actively employed as a county or municipal law enforcement officer or municipal firefighter, participated in the person's employer's health insurance plan or other fully-insured health insurance plan; and

(4) Receive or be eligible to receive:

(a) If retired from at least 25 years of service in a position as a county or municipal law enforcement officer or a municipal firefighter, a retirement benefit from the Maine Public Employees Retirement System or a defined contribution retirement plan other than the United States Social Security Act; or

(b) If retired from less than 25 years of service in a position as a county or municipal law enforcement officer or a municipal firefighter, a retirement benefit from the Maine Public Employees Retirement System or a defined contribution retirement plan other than the United States Social Security Act, as long as the benefit provided is at least 50% of average final compensation, with no reduction for early retirement and with or without a cost-of-living adjustment; or

Sec. 3. 5 MRSA §286-M, sub-§5, ¶C, as enacted by PL 2005, c. 636, Pt. A, §3, is amended to read:

C. Notwithstanding paragraphs A and , B and D, when the eligible person, the eligible person's spouse or the eligible person's dependent experiences an involuntary loss of other health insurance coverage carried as of January 1, 2007 or 60 days following the date of the eligible person's hire, whichever is later, the eligible person may elect to enroll in the program no later than 60 days after the effective date of the loss of that coverage, subject to the enrollment and eligibility requirements of the applicable group health plan. Involuntary loss of coverage does not include a loss of coverage arising as a result of nonpayment of premiums.

Sec. 4. 5 MRSA §286-M, sub-§5, ¶D is enacted to read:

D. When the effective date of hire of the eligible person is on or after January 1, 2020, the eligible person must enroll in the program no later than 60 days following the effective date of hire and receives coverage through the applicable group health plan pursuant to section 285, subsection 11-A.

Sec. 5. 5 MRSA §286-M, sub-§6, as enacted by PL 2005, c. 636, Pt. A, §3, is amended to read:

6. Premiums; subsidy. Premiums for the program and the premium subsidy are subject to the provisions of this subsection. Premium subsidies are not provided for supplemental health insurance coverage.

A. An enrollee participating in the majority multiple-employer welfare arrangement is responsible for the premium payment associated with the cost of the majority multiple-employer welfare arrangement benefit option in which the enrollee is participating, to the extent such premium obligations exist following the application of any premium subsidy authorized by law. An enrollee who fails to remit the premium payments as established and required by the majority multiple-employer welfare arrangement must be disenrolled from the program. Beginning July 1, 2007, the State shall provide a premium subsidy for enrollees in the form of a direct payment to the majority multiple-employer welfare arrangement for each enrollee. The level of the subsidy must equal 45% of the individual premium cost for the enrollee and varies among enrollees depending upon the terms of the majority multiple-employer welfare arrangement coverage plan in which each enrollee is participating. Enrollees are responsible for the balance of the applicable individual premium, as well as the total cost of the premium for any applicable dependent coverage, and shall make payments directly to the majority multiple-employer welfare arrangement. Beginning January 1, 2020 or the start of the health plan year, whichever is later, an enrollee participating in the majority multiple-employer welfare arrangement pursuant to this paragraph must be enrolled in the applicable group health plan pursuant to paragraph C and section 285, subsection 11-A.

B. Enrollees retiring from counties or municipalities that do not participate in the majority multiple-employer welfare arrangement but who are eligible and elect to participate in that county's or municipality's fully insured health benefits plan are responsible for the premium payment associated with the cost of that plan, to the extent such premium obligations exist following the application of any premium subsidy authorized by law. An enrollee who fails to remit the premium payments as established and required by the fully insured plan must be disenrolled from the program. Beginning July 1, 2007, the State shall provide a premium subsidy for enrollees participating in fully insured health benefits plans pursuant to this subsection. This subsidy must be made in the form of a direct payment to the enrollee's health benefits plan and must equal 45% of the individual premium cost for the enrollee or a dollar amount equivalent to the highest premium subsidy provided in accordance with paragraph A, whichever is less. A retiree electing to enroll a spouse or a dependent in the program is responsible for payment of 100% of such coverage in addition to that portion of the retiree's individual premium cost not contributed by the State. Beginning January 1, 2020 or the start of the health plan year, whichever is later, an enrollee participating in that county's or municipality's fully insured health benefits plan pursuant to this paragraph must be enrolled in the applicable group health plan pursuant to paragraph C and section 285, subsection 11-A.

C. Beginning January 1, 2020, enrollees shall participate in the applicable group health plan pursuant to section 285, subsection 11-A. Beginning January 1, 2020, the State shall provide a premium subsidy equal to 100% of the individual premium cost for the enrollee. A retiree electing to enroll a spouse or a dependent in the program is responsible for payment of 100% of such coverage.

Sec. 6. 5 MRSA §286-M, sub-§8, ¶A, as enacted by PL 2005, c. 636, Pt. A, §3, is amended to read:

A. Beginning January 1, 2007 and until December 31, 2019, each enrollee who participates as an active employee in a retirement plan shall contribute 1.5% of that enrollee's gross wages to the fund. Beginning January 1, 2020, each enrollee who participates as an active employee in a retirement plan shall contribute 2.5% of that enrollee's gross wages to the fund.

Sec. 7. 5 MRSA §286-M, sub-§9, as enacted by PL 2005, c. 636, Pt. A, §3, is amended to read:

9. Retirees without 5 years of contributions to fund. A person who retires without making 60 months of contributions to the fund but who meets the other eligibility criteria of subsection 3, referred to in this subsection as "the retiree," is eligible to participate pursuant to this subsection.

A. The retiree is eligible for coverage under the program upon enrollment.

B. The Until December 31, 2019, the retiree shall pay the dollar equivalent of the retiree's scheduled contributions based upon the following schedule:

(1) A retiree who is at least 50 years of age and under 55 years of age shall pay 2% of that retiree's average final monthly compensation multiplied by 60;

(2) A retiree who is at least 55 years of age and under 60 years of age shall pay 1.75% of that retiree's average final monthly compensation multiplied by 60; and

(3) A retiree who is at least 60 years of age shall pay 1.5% of that retiree's average final monthly compensation multiplied by 60.

As used in this paragraph, "average final monthly compensation" means the average annual rate of earnable compensation, divided by 12, of a retiree during the 3 years of creditable service as a county or municipal law enforcement officer or municipal firefighter, not necessarily consecutive, in which the average annual rate of earnable compensation is highest or during the retiree's entire period of creditable service as a county or municipal law enforcement officer or municipal firefighter, if the period is less than 3 years.

B-1. Beginning January 1, 2020, the retiree shall pay the dollar equivalent of the retiree's scheduled contributions based upon the following schedule:

(1) A retiree who is at least 50 years of age and under 55 years of age shall pay 2.5% of that retiree's average final monthly compensation multiplied by 60;

(2) A retiree who is at least 55 years of age and under 60 years of age shall pay 2.0% of that retiree's average final monthly compensation multiplied by 60; and

(3) A retiree who is at least 60 years of age shall pay 1.75% of that retiree's average final monthly compensation multiplied by 60.

C. If the retiree has made contributions to the fund while employed as a county or municipal law enforcement officer or municipal firefighter, the retiree shall pay the difference between:

(1) The total of the retiree's employee contributions required pursuant to paragraph B or B-1 based on the retiree's age as of the date of retirement; and

(2) The dollar equivalent of the retiree's scheduled contributions for 60 months pursuant to subsection 8.

D. The retiree shall make the payments required by paragraph B , B-1 or C to the division within 12 months of enrollment in the program. A retiree who fails to make the required payment within 12 months of enrollment must be disenrolled from the program.

Sec. 8. Open enrollment. A county or municipal law enforcement officer, a municipal firefighter or a person retired from such a position with an effective date of hire after November 1, 2006 who elected not to enroll may make a one-time election to enroll in the Retired County and Municipal Law Enforcement Officers and Municipal Firefighters Health Insurance Program established in the Maine Revised Statutes, Title 5, section 286-M before July 1, 2020.

summary

This bill makes changes to the Retired County and Municipal Law Enforcement Officers and Municipal Firefighters Health Insurance Program.

1. It makes enrollment in the program mandatory for a county or municipal law enforcement officer or municipal firefighter with a date of hire on or after January 1, 2020 and offers one-time open enrollment until July 1, 2020 to those officers and firefighters with a date of hire after November 1, 2006 who elected not to enroll.

2. It increases the employee contribution for participation in the program from 1.5% of gross wages to 2.5% and makes corresponding changes to the contribution requirements for retirees with less than 5 years of contributions upon retirement.

3. It allows a retiree to be eligible if the retiree is less than 50 years of age as long as the retiree has at least 25 years of service in a position as a county or municipal law enforcement officer or a municipal firefighter and has participated in the special consolidation retirement plan from the Maine Public Employees Retirement System.

4. It increases the state subsidy for the retiree’s share of the costs of health insurance coverage from 45% to 100%.

5. It requires that all retirees be provided health insurance coverage through the group health plan provided to state employees beginning January 1, 2020.

HP0324 LD 415	Session - 129th Maine Legislature		LR 1186 Item 1
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