Senate Bill 3 Summary

• Increases State and Public School Life and Health Insurance Board voting membership from 14 to 15 members, changing the public school employee representative from one certified teacher to two public school employees with at least one from a rural school district.

• Requires participants in consumer-driven health insurance plan options to establish health savings accounts and adds board duties to verify dependent eligibility and implement a policy to use non-federally-taxable funds for premium assistance beginning in the 2014 Plan Year.

• Redefines "dependent" beginning in the 2015 plan year to exclude legally separated or divorced individuals and spouses offered healthcare coverage through a separate employer-funded benefit plan that provides essential health benefits.

• Repeals a requirement that school districts use health insurance funding from adequacy study calculations for employee health insurance premiums, replacing it with a notification requirement that the Department of Education inform districts of the allocated amount.

• Defines "rural school district" as a school district or public charter school with an average daily membership of 1,000 students or less and adds authority for the board to discontinue or suspend plan options to ensure financial soundness of the program.