House Bill No. by Representative Zeringue seeks to amend provisions related to the state's Office of Group Benefits, particularly focusing on the cost-sharing of insurance premiums for retirees. The bill modifies R.S. 17:81(Z)(2) to mandate local school boards to provide health insurance coverage as required by R.S. 42:851, with the addition of a new designation (V). It also clarifies the state's contribution towards premiums for active employees who retire after meeting specific criteria, including years of service and participation in the Office of Group Benefits program. A new subsection (W) is introduced to outline the state's obligations for retirees with at least twenty-five years of service, while ensuring that contributions for retirees covered under existing law prior to January 1, 2026, remain unchanged.

Additionally, the bill establishes an alternative cost-sharing calculation for retiree insurance premiums, retaining the existing calculation for employees hired after January 1, 2002. The proposed law introduces a new calculation for active employees with at least 25 years of full-time state employment, with contributions ranging from 56% to 70% based on years of participation in the OGB program. The bill allows for the state contribution to be calculated using either the existing or new proposed law, whichever yields a higher contribution. It also includes provisions for health insurance coverage to begin concurrently with employment for public school employees in disaster areas and outlines eligibility for surviving spouses of deceased retirees to obtain health coverage under certain conditions. The bill is set to take effect on July 1, 2025.

Statutes affected:
HB515 Original: 17:81(Z)(2), 42:851(E)(1)