LEGISLATIVE FISCAL OFFICE
Fiscal Note
Fiscal Note On: SB 164 SLS 24RS 226
Bill Text Version: ENROLLED
Opp. Chamb. Action:
Proposed Amd.:
Sub. Bill For.:
Date: May 23, 2024 9:48 AM Author: ABRAHAM
Dept./Agy.: Office of Group Benefits
Subject: Health Coverage for Surviving Spouses Analyst: Garrett Ordner
GROUP BENEFITS PROGRAM EN SEE FISC NOTE GF EX Page 1 of 1
Provides relative to Office of Group Benefits health coverage programs for certain employees. (gov sig)
Proposed law provides that any person who previously participated in health coverage programs sponsored by the Office of Group Benefits
(OGB) as a dependent spouse of a deceased retiree immediately prior to enrolling in OGB coverage as an active employee, shall, upon
termination from state service, be eligible to obtain OGB health coverage as a surviving spouse provided that person (1) is enrolled in OGB
health coverage as an active employee as of July 1, 2024; (2) remains enrolled in OGB health coverage continuously until immediately
prior to the date of termination; (3) would have had surviving spouse coverage at the time of death of the retiree spouse but for his or her
eligibility for coverage in a group plan other than Medicare; (4) pays the requisite premiums; and (5) complies with any other applicable
OGB rules. Proposed law provides that any person eligible for coverage under proposed law is entitled to receive, in state contribution to
premiums, the percentage of the total premium as provided for in applicable OGB rules. Proposed law provides that employer contributions
are the responsibility of the deceased retiree’s employing school board, state agency, or subdivision. Proposed law provides that
dependent children of a person eligible for coverage as a surviving spouse under proposed law may continue coverage in accordance with
applicable OGB rules.
EXPENDITURES 2024-25 2025-26 2026-27 2027-28 2028-29 5 -YEAR TOTAL
State Gen. Fd. SEE BELOW SEE BELOW SEE BELOW SEE BELOW SEE BELOW
Agy. Self-Gen. $0 $0 $0 $0 $0 $0
Ded./Other $0 $0 $0 $0 $0 $0
Federal Funds $0 $0 $0 $0 $0 $0
Local Funds $0 $0 $0 $0 $0 $0
Annual Total
REVENUES 2024-25 2025-26 2026-27 2027-28 2028-29 5 -YEAR TOTAL
State Gen. Fd. $0 $0 $0 $0 $0 $0
Agy. Self-Gen. $0 $0 $0 $0 $0 $0
Ded./Other $0 $0 $0 $0 $0 $0
Federal Funds $0 $0 $0 $0 $0 $0
Local Funds $0 $0 $0 $0 $0 $0
Annual Total $0 $0 $0 $0 $0 $0
EXPENDITURE EXPLANATION
Proposed law may result in an indeterminable, yet minimal, net increase in expenditures to state employers as the result of surviving
spouses of deceased retirees who obtain health coverage under the proposed measure. The increase in benefits costs paid by the
employing agency will depend upon the deceased retiree’s years of participation in an OGB health plan, the surviving spouse’s choice of
health plan, the surviving spouse’s coverage level, and the surviving spouse’s Medicare status. If the deceased retiree had more years of
participation in an OGB health plan, this increase will be partially offset by the decrease in benefits costs that would have been paid by the
employing agency of the surviving spouse. OGB reports that due to the small number of enrollees who may benefit from the proposed law,
it will make any required changes in eligibility manually and will not require additional coding from the eligibility system vendor.
OGB reports that up to 18 health plan members may be eligible to obtain surviving spouse status upon termination from state service
under the proposed law.
REVENUE EXPLANATION
There is no anticipated direct material effect on governmental revenues as a result of this measure.
Senate Dual Referral Rules House
13.5.1 >= $100,000 Annual Fiscal Cost {S & H} 6.8(F)(1) >= $100,000 SGF Fiscal Cost {H & S}
Patrice Thomas
13.5.2 >= $500,000 Annual Tax or Fee 6.8(G) >= $500,000 Tax or Fee Increase
Change {S & H} or a Net Fee Decrease {S} Deputy Fiscal Officer