SB 28: "An Act amending the definition of group health insurance, and allowing the Department of Administration to obtain a policy or policies of group health care insurance for employers that are small businesses, nonprofit organizations, special services organizations, or small associations for insurance purposes; and providing for an effective date."
00 SENATE BILL NO. 28 01 "An Act amending the definition of group health insurance, and allowing the 02 Department of Administration to obtain a policy or policies of group health care 03 insurance for employers that are small businesses, nonprofit organizations, special 04 services organizations, or small associations for insurance purposes; and providing for 05 an effective date." 06 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 07 * Section 1. The uncodified law of the State of Alaska is amended by adding a new section 08 to read: 09 FINDINGS AND INTENT. (a) The legislature has made the following findings 10 regarding the facts that support a group insurance policy for qualified entities: 11 (1) the latest United States Census data indicate that 19 percent of Alaskans 12 are uninsured; 13 (2) in 2000, about 700 companies were licensed to offer health insurance in
01 the state, about 250 companies wrote some form of health insurance in the state, and fewer 02 than 114,000 Alaskans were covered under individual and group comprehensive health 03 insurance policies written in the state; 04 (3) in 2000, 18 insurers wrote small employer health insurance in the state; 80 05 percent of small group policies are written by three health insurers; 06 (4) small businesses are having problems finding and keeping adequate 07 insurance coverage for employees; 08 (5) nonprofit and special services organizations are having problems finding 09 and keeping adequate insurance coverage for employees; 10 (6) nonprofit and special services organizations provide many services that 11 government cannot supply; and 12 (7) adequate and stable health insurance is important to Alaskans; 13 (b) It is the intent of the legislature that this Act assist in providing access to adequate 14 and stable health insurance for small businesses, nonprofit organizations, and special services 15 organizations. 16 (c) The Department of Administration, in procuring the policy or policies permitted 17 by this Act, should explore all options, including preferred provider organizations and lower 18 cost options such as limited benefit and high deductible coverage. 19 * Sec. 2. AS 21.54.060 is amended by adding a new paragraph to read: 20 (7) under a policy or policies issued under AS 39.30.097. 21 * Sec. 3. AS 39.30 is amended by adding a new section to read: 22 Sec. 39.30.097. Procurement of group health care insurance policies for 23 qualified entities. (a) The department may obtain a health care insurance policy or 24 policies to cover a group of qualified entities. 25 (b) In procuring a health care insurance policy or policies under this section, 26 the commissioner of administration shall comply with the procedure for obtaining 27 policies of insurance under AS 39.30.090(a)(4) and (5). 28 (c) A qualified entity is eligible for coverage under (a) of this section if the 29 qualified entity 30 (1) submits a written request for registration to the department; and 31 (2) receives written confirmation from the commissioner of
01 administration that the qualified entity is registered to participate. 02 (d) The request for registration submitted by a qualified entity under (c) of this 03 section must contain a statement certifying that the entity meets the definition of a 04 qualified entity under this section and that the entity agrees to pay the required 05 premiums to the insurance company. The owner, a principal, or another legally 06 qualified representative of the entity shall sign the statement under penalty of unsworn 07 falsification and fraud. The department shall register an entity that submits a request 08 for registration and meets the requirements of this subsection. The department shall 09 maintain a list of entities registered to participate under this section and shall make the 10 list available for public inspection. 11 (e) The department may not procure benefits under this section by means of 12 self-insurance. 13 (f) In this section, 14 (1) "association for insurance purposes" means an association 15 (A) composed of businesses or nonprofit organizations or both; 16 and 17 (B) organized and operating in Alaska; 18 (2) "business" means a business 19 (A) located in Alaska; 20 (B) organized under the relevant provisions of the Alaska 21 Statutes; if the form of business is not required to be organized under a statute, 22 then the sole proprietor or joint venturers who own the business must be 23 Alaska residents; and 24 (C) that employed an average of at least two but not more than 25 50 eligible employees on the business days during the preceding calendar year 26 and employs at least two eligible employees on the first day of a health benefit 27 plan; 28 (3) "department" means the Department of Administration; 29 (4) "employee" has the meaning given in AS 21.54.500; 30 (5) "health care insurance" has the meaning given in AS 21.12.050; 31 (6) "nonprofit organization" means a nonprofit corporation,
01 association, club, or society organized and operating in Alaska exclusively for 02 charitable, religious, scientific, or educational purposes or for the promotion of social 03 welfare and that has received an exemption from the payment of federal income tax; 04 (7) "policy" has the meaning given in AS 21.90.900; 05 (8) "qualified entity" means a business, nonprofit organization, 06 association for insurance purposes, or special services organization; 07 (9) "special services organization" means an entity, corporation, or 08 nonprofit organization organized and operating in Alaska that is 09 (A) an entity, including a sole proprietorship and a corporation 10 solely owned by one person, 11 (i) operating a child care facility that is licensed under 12 AS 14.37; 13 (ii) operating a residential child care facility, child 14 placement agency, foster home, or maternity home that is licensed 15 under AS 47.35; 16 (iii) operating an assisted living home that is licensed 17 under AS 47.33; 18 (iv) operating a community-based center for adult day 19 care as that term is defined in AS 47.65.290; or 20 (v) providing home care services as defined in 21 AS 47.65.290; 22 (B) a corporation incorporated under AS 10.20 that 23 (i) receives state grants to provide services; or 24 (ii) makes grants to other corporations incorporated 25 under AS 10.20 that receive state grants to provide services; or 26 (C) a nonprofit organization, regardless of whether 27 incorporated, whose primary purpose is to provide assistance to disadvantaged 28 classes or groups. 29 * Sec. 4. The uncodified law of the State of Alaska is amended by adding a new section to 30 read: 31 INITIAL COST RECOVERY. The commissioner of administration shall recover the
01 initial administrative costs of procuring group health care insurance policies as provided in 02 AS 39.30.097, added by sec. 3 of this Act, over a period of five years. The commissioner 03 shall fairly allocate the administrative costs among the qualified entities seeking coverage 04 under AS 39.30.097 based on the numbers of persons covered. The commissioner shall 05 distribute the administrative costs recovered pro rata to the funds from which initial funding 06 was made. 07 * Sec. 5. This Act takes effect immediately under AS 01.10.070(c).