This bill amends various sections of Alaska law to establish and enhance group insurance coverage and self-insurance options for school district employees, employees of the University of Alaska, and employees of other governmental units. Key provisions include the ability for regional school boards to establish and maintain participation in insurance policies, as authorized under new section AS 14.27.010. Additionally, school boards are required to determine and disburse funds for employee compensation, which now includes contributions for insurance participation. The bill also allows the commissioner of administration to expend funds from the public education fund to cover claims for district employees under self-insurance policies, with a reimbursement plan set over ten years.

Furthermore, the bill introduces a new chapter specifically addressing health insurance for university and school district employees, detailing the responsibilities of participating employers regarding contributions and reimbursements related to insurance costs. It also clarifies definitions related to governmental units and school districts, and mandates the transfer of self-funded insurance reserves to the group health and life benefits fund for those transitioning to state-administered health care plans. The bill is set to take effect on July 1, 2026, with certain provisions taking effect immediately.

Statutes affected:
SB0005A, AM SB 5, introduced 01/10/2025: 14.08.101, 14.11.011, 14.11.020, 14.08.151, 18.56.855, 14.27.010, 14.14.090, 14.18.060, 47.17.020, 14.20.149, 14.20.680, 14.30.355, 14.30.356, 14.30.362, 14.33.100, 18.66.310, 47.17.022, 14.17.300, 39.30.095, 39.30.091, 39.30.090, 23.40.070, 23.40.260, 14.40.170, 14.25.168, 14.25.480, 22.25.090, 39.35.535, 39.35.880, 39.37.145, 23.15.136, 21.86.310, 14.25.110, 23.15.010, 23.15.210