House Bill No. by Representative Zeringue seeks to amend provisions related to the state's Office of Group Benefits, specifically 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 obligations regarding premium contributions for retirees with varying lengths of service and introduces a new subsection (W) that establishes contribution rates based on years of service. The bill ensures that contributions for retirees prior to January 1, 2026, remain unchanged and includes technical corrections to enhance clarity in employee benefits and insurance coverage laws.

Furthermore, the bill outlines an alternative cost-sharing calculation for retiree insurance premiums under the Office of Group Benefits, maintaining the existing calculation for employees hired on or after January 1, 2002. The current contribution percentages are set at 19% for less than 10 years, 38% for 10 to less than 15 years, 56% for 15 to less than 20 years, and 75% for 20 or more years of participation. It also introduces additional calculations for active employees with at least 25 years of full-time state employment. Additionally, the bill provides health insurance coverage provisions for employees in disaster areas and eligibility criteria for surviving spouses of deceased retirees. The proposed changes are set to take effect on July 1, 2025.

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