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 other governmental units. Key provisions include the ability for regional school boards to establish and maintain participation in insurance policies, as authorized under AS 14.27.010, and the requirement for school boards to include the costs of such insurance in their compensation determinations for employees. Additionally, the bill 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 in place over ten years.

The bill also introduces a new chapter specifically addressing health insurance for university and school district employees, detailing the contributions required from participating employers and the reimbursement obligations for excess loss insurance. It 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 upon enrollment in state-administered health care plans. The act is set to take effect on July 1, 2026, with certain provisions becoming effective 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