AR HR1003

Authorizes Senator Hickey or Senator Rice to introduce a bill establishing a funding mechanism for the State and Public School Life and Health Insurance Program.

Requires the Director of the Employee Benefits Division to maintain a 14% optimal reserve balance for the insurance program beginning in plan year 2023, with a minimum acceptable balance of 12% for both state and public school employees.

Mandates the director to annually calculate projected reserve balances by April 30 and submit plans to the Legislative Council for approval to achieve or maintain the optimal reserve balance.

If the reserve balance falls below 12%, the director must notify the Legislative Council, which may recommend the Governor call an extraordinary session; if no funding is provided by July 30, the director must collect additional revenue through premium increases or benefit reductions.

If reserve balance exceeds 16%, the director may use the excess to lower premium rates or expand benefits with Legislative Council approval, and must report rationale to the Council if electing not to do so.