HB2700 Summary

• Transfers administration of Teachers' Retirement System (TRS) health benefits from the Teachers' Retirement System Board to the Department of Central Management Services, effective January 1, 1996.

• Establishes the Teacher Health Insurance Security Fund as a nonappropriated trust fund to receive all revenues from TRS health benefit programs and pay program costs and administrative expenses.

• Sets premium increase caps: FY 1996 frozen at FY 1995 level, FY 2003-2007 with specific percentage limits (110%-112%), and FY 2008 and beyond capped at 105% annually.

• Determines cost-sharing between the Fund and TRS benefit recipients: managed care plans receive 75% Fund subsidy, major medical receives 50-75% depending on managed care availability, and Medicare-primary dependent beneficiaries receive 25% subsidy.

• Adds provision allowing TRS benefit recipients to receive refunds of overpayments for up to 7 years of past payments when billing errors occur.