GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2001
S	1
SENATE BILL 822
     

 
Short Title:	State Self-Funded Health Care Plan.	()	
Sponsors:	Senators Rand; and Foxx.	
Referred to:	Insurance and Consumer Protection.	
April 3, 2001

A BILL TO BE ENTITLED
AN ACT TO AUTHORIZE THE EXECUTIVE ADMINISTRATOR AND BOARD OF TRUSTEES OF THE TEACHERS' AND STATE EMPLOYEES' COMPREHENSIVE MAJOR MEDICAL PLAN TO ADOPT AN ARRANGEMENT FOR AN OPTIONAL PREPAID HOSPITAL AND MEDICAL BENEFITS PROGRAM as an alternative to those currently available.

The General Assembly of North Carolina enacts:
SECTION 1.  G.S. 135‑39.5B reads as rewritten:
"§ 135‑39.5B.  Prepaid plans.
(a)	The Executive Administrator and Board of Trustees may, after consultation with the Committee on Employee Hospital and Medical Benefits, provide for optional prepaid hospital and medical benefits plans. Benefits offered under such optional plans shall be comparable to those offered under the Plan. The amounts of State funds contributed for such optional plans shall not be more than the amounts contributed for each person eligible under G.S. 135‑40.2 on a noncontributory Employee Only basis, with the person selecting an optional plan paying any excess, if necessary. The amount of State funds contributed to such optional plans shall also not exceed the amount of an optional plan's cost for Employee Only coverage. The Executive Administrator and Board of Trustees are authorized to assess and collect fees from participating optional plans provided by this section for administrative purposes and for risk management purposes. Such fees may be based upon the enrollees' risk factors and the number and types of contracts enrolled by each participating optional plan, and may be collected by the Plan in a manner prescribed by the Executive Administrator and Board of Trustees. In no instance shall benefits be paid under Part 3 of this Article for persons enrolled in an optional prepaid hospital and medical benefit plan authorized under this section on and after the effective date of enrollment in the optional prepaid plan, except in cases of continuous hospital confinement approved by the Executive Administrator.
(b)	The Executive Administrator and Board of Trustees may, after consulting with the Committee on Employee Hospital and Medical Benefits, adopt an arrangement for an optional prepaid hospital and medical benefits program, including one underwritten by the State, other than the one specified in subsection (a) of this section."
SECTION 2.  This act is effective when it becomes law.