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Budget Recommendations

Outside Section 49


Group Health Insurance Premium Contributions

SECTION 49.   Section 8 of chapter 32A of the General Laws, as so appearing, is hereby amended by striking the first and second paragraphs and inserting in place thereof the following:-
          Notwithstanding the provisions of any general or special law to the contrary, for policies of group life insurance and accidental death and dismemberment insurance, and group health insurance purchased by the division in accordance with the provisions of sections 4, 5, and 10C, the commonwealth, on behalf of active and retired employees, shall contribute a portion of the aggregate monthly premiums applicable to said coverages. At the beginning of each fiscal year, the division shall set the amount contributed by the commonwealth of the aggregate monthly premiums applicable to said coverages based upon the amount appropriated for this expenditure in the general appropriation act. The actual percentage of each such plans' premium to be contributed by the commonwealth may vary from plan to plan provided that (i) the aggregate premiums contributed by the commonwealth shall not be less than the aggregate amount to be contributed as set above and (ii) the state contribution for the least costly plan available for each individual shall not be less than (a) 75% in the case of active employees of and those retirees retiring after July 1, 2003, or (b) 85% in the case of retirees retired on or after July 1, 1994 or (c) 90% in the case of retirees retired prior to July 1, 1994. In determining the least costly plan, the rates for differing plans may be adjusted to reflect differences in the wellness-risk of the populations covered. The commonwealth shall contribute a share of any additional premium which may be required for coverage of an employee's dependent child who is 19 years of age or over and mentally and physically incapable of earning his own living, such share equaling the same ratio as that paid on behalf of an active or retired employee and dependent.