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H.B. 24

             1     

HEALTH INSURANCE FOR SCHOOL DISTRICTS

             2     
2012 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: Jim Bird

             5     
Senate Sponsor: ____________

             6     
             7      LONG TITLE
             8      Committee Note:
             9          The Workforce Services and Community and Economic Development Interim
             10      Committee recommended this bill.
             11      General Description:
             12          This bill amends the duties of local school boards in the State System of Public
             13      Education Code.
             14      Highlighted Provisions:
             15          This bill:
             16          .    defines terms;
             17          .    requires local school boards to seek competitive bids on the health insurance
             18      benefits it offers school district employees beginning in the 2012-13 school year and
             19      every three years thereafter; and
             20          .    establishes criteria for the competitive bids for health care benefits.
             21      Money Appropriated in this Bill:
             22          None
             23      Other Special Clauses:
             24          None
             25      Utah Code Sections Affected:
             26      ENACTS:
             27          53A-3-430, Utah Code Annotated 1953


             28     
             29      Be it enacted by the Legislature of the state of Utah:
             30          Section 1. Section 53A-3-430 is enacted to read:
             31          53A-3-430. Health care benefits for school district employees -- Competitive bids.
             32          (1) For purposes of this section:
             33          (a) "Health care benefit":
             34          (i) is as defined in Section 31A-1-301 ; and
             35          (ii) includes:
             36          (A) dental and vision benefits; and
             37          (B) a plan offered to a local school district under Title 49, Chapter 20, Public
             38      Employees' Benefit and Insurance Program Act.
             39          (b) "Insurer" includes:
             40          (i) an insurer regulated under Title 31A, Insurance Code;
             41          (ii) a plan offered under Title 49, Chapter 20, Public Employees' Benefit and Insurance
             42      Program Act; and
             43          (iii) a third party administrator as defined in Section 31A-1-301 .
             44          (2) (a) A local school board may provide health care benefits to its employees.
             45          (b) A local school board may contract and cooperate with other local school boards to
             46      provide health care benefits to its employees.
             47          (3) (a) A local school board that provides health care benefits to its employees, or a
             48      group of local school boards joining together to provide health care benefits to its employees,
             49      shall, in accordance with Subsection (4), issue a request for proposal and seek competitive bids
             50      for the health care benefits offered to employees in the 2012-2013 school year.
             51          (b) A local school board that awards a contract for health care benefits for its
             52      employees after issuing a request for proposal under Subsection (3)(a), shall every three years
             53      thereafter, seek competitive bids for the contract for health care benefits in accordance with
             54      Subsection (4).
             55          (4) A request for proposals under Subsection (3) shall:
             56          (a) solicit bids from at least two different insurers; and
             57          (b) retain the services of at least two producers who are:
             58          (i) each licensed under Title 31A, Chapter 23a, Insurance Marketing - Licensing


             59      Producers, Consultants, and Reinsurance Intermediaries; and
             60          (ii) not affiliated with the same agency license issued under Title 31A, Chapter 23a,
             61      Insurance Marketing - Licensing Producers, Consultants, and Reinsurance Intermediaries.




Legislative Review Note
    as of 9-7-11 1:20 PM


Office of Legislative Research and General Counsel


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