Senate Bill 265 Summary

• Appropriates $8.1 million for FY 2011-2012 and $101.8 million for FY 2012-2013 from the General Fund, plus $376,217 and $4.75 million from the Highway Fund respectively, to cover State Health Plan costs for teachers and state employees.

• Increases employee and retiree health insurance premiums and cost-sharing through higher deductibles (up to $933 for in-network basic plan), coinsurance maximums (up to $3,793), and co-payments for primary care ($35), specialists ($81), and prescriptions ($40-$64).

• Implements new partially contributory coverage category requiring certain employees and retirees to contribute toward premiums based on years of service, with specific monthly rates established for FY 2011-2012 and FY 2012-2013.

• Expands dependent child coverage to age 26 (from age 19) in compliance with the federal Affordable Care Act.

• Transfers the State Health Plan from the Office of State Budget and Management to the Department of State Treasurer effective January 1, 2012, with the State Treasurer appointing the Executive Administrator and chairing the Board of Trustees.