Bill Summary – FastDemocracy

State of Alaska
                                                               Fiscal Note
                                                                                                  Bill Version:                     HB 21
 2023 Legislative Session
                                                                                                  Fiscal Note Number:               2
                                                                                                  (H) Publish Date:                 3/29/2023
 Identifier:        HB021-DOA-DRB-3-10-23                                           Department:       Department of Administration
 Title:             SCHOOL/UNIVERSITY EMPLOYEE HEALTH                               Appropriation: Centralized Administrative Services
                    INSUR                                                           Allocation:       Health Plans Administration
 Sponsor:           VANCE                                                           OMB Component Number:              2152
 Requester: (H) EDC
 Expenditures/Revenues
 Note: Amounts do not include inflation unless otherwise noted below.                                                                     (Thousands of Dollars)
                                                 Included in
                                    FY2024       Governor's
                                Appropriation      FY2024                                                Out-Year Cost Estimates
                                  Requested       Request
 OPERATING EXPENDITURES               FY 2024        FY 2024       FY 2025                          FY 2026           FY 2027             FY 2028         FY 2029
 Personal Services                       155.9                        311.7                           311.7             311.7               311.7           311.7
 Travel
 Services                                 63.9                         39.4                             14.4                 14.4             14.4             14.4
 Commodities                              22.5                          1.5                              1.5                  1.5              1.5              1.5
 Capital Outlay
 Grants & Benefits
 Miscellaneous
 Total Operating                         242.3            0.0         352.6                            327.6             327.6              327.6            327.6
 Fund Source (Operating Only)
 1017 Group Ben (Other)                          242.3                              352.6              327.6             327.6              327.6            327.6
 Total                                           242.3               0.0            352.6              327.6             327.6              327.6            327.6
 Positions
 Full-time                                          3.0
 Part-time
 Temporary
 Change in Revenues
 None
 Total                                              0.0              0.0                 0.0              0.0                 0.0              0.0              0.0
 Estimated SUPPLEMENTAL (FY2023) cost:                                        0.0              (separate supplemental appropriation required)
 Estimated CAPITAL (FY2024) cost:                                             0.0              (separate capital appropriation required)
 Does the bill create or modify a new fund or account?       No
 (Supplemental/Capital/New Fund - discuss reasons and fund source(s) in analysis section)
 ASSOCIATED REGULATIONS
 Does the bill direct, or will the bill result in, regulation changes adopted by your agency?                     Yes
 If yes, by what date are the regulations to be adopted, amended or repealed?                                     07/01/24
 Why this fiscal note differs from previous version/comments:
 Not applicable, initial version.
 Prepared By:               Betsy Wood                                                                                  Phone:          (907)465-3143
 Division:                  Retirement and Benefits                                                                     Date:           03/10/2023
 Approved By:               Leslie Isaacs, Administrative Services Director                                             Date:           03/10/2023
 Agency:                    Department of Administration
Printed 3/27/2023                                                          Page 1 of 2                                                           Control Code: vwuQl
                                                                                                                        HB 21 - Fiscal Note 2
                                                  FISCAL NOTE ANALYSIS
STATE OF ALASKA                                                                    BILL NO. HB 21
2023 LEGISLATIVE SESSION
Analysis
   This fiscal note details the anticipated Division of Retirement & Benefits (Division) operational fiscal impacts associated with
   this bill. The Division also anticipates a fiscal impact to claim and program costs for the AlaskaCare employee plan, however
   that impact requires an actuarial analysis and will be discussed in a separate fiscal note.
   This bill would enable governmental units (school districts, municipalities, the University of Alaska, other political
   subdivisions, and the North Pacific Fishery Management Council) to join in self‐insured group health insurance plans
   administered by the Department of Administration for State employees. This type of health coverage is currently provided
   to State employees through the AlaskaCare health plans.
   The Division will require three permanent employees, two Retirement and Benefits Technician 2 positions and one
   Retirement and Benefits Specialist 2 (personal services) plus computer, phone, cubicle, supplies (commodities) to provide
   billing and accounts‐receivable support services to manage enrollment, eligibility, and employee premium and employer
   contribution payments from participating governmental units. These positions should begin in mid FY2024.
   The Division will incur costs related to required system coding changes (both internal Division systems and third‐party
   contracted partners), contracted actuarial consultants, and support from the Department of Law for legal and regulatory
   review (services). These costs are anticipated to largely accrue during the first two fiscal years, however some consulting
   services will be ongoing.
   The Department would need to promulgate regulations as a result of the passage of this bill. These regulations should be in
   place by the effective date of the bill (July 1, 2024), as they will articulate the process and protocol for governmental units
   seeking to join the AlaskaCare employee health plan.
(Revised 08/26/2022 OMB/LFD)                                                                                          Page 2 of 2
HB021-DOA-DRB-3-10-23                                             Page 2 of 2                                                  Control Code: vwuQl
Statutes affected: 
HB0021A, AM HB 21, introduced 01/09/2023: 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
HB0021B, AM CSHB 21(L&C), introduced 05/03/2023: 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