Chapter 694 Oregon Laws 2003

AN ACT

HB 3648

Relating to health insurance for retirees of local government; creating new provisions; amending ORS 243.303; and declaring an emergency.

Be It Enacted by the People of the State of Oregon:

SECTION 1. ORS 243.303, as amended by section 1, chapter 62, Oregon Laws 2003 (Enrolled House Bill 2130), is amended to read:

243.303. (1) As used in this section:

(a) “Health care” means medical, surgical, hospital or any other remedial care recognized by state law and related services and supplies and includes comparable benefits for persons who rely on spiritual means of healing.

(b) “Local government” means any city, county, school district or other special district in this state.

(c) “Retired employee” means a former officer or employee of a local government who is retired for service or disability, and who received or is receiving retirement benefits, under the Public Employees Retirement System or any other retirement system or plan applicable to officers and employees of the local government.

(2) The governing body of any local government that contracts for or otherwise makes available health care insurance coverage for officers and employees of the local government shall, insofar as and to the extent possible, make that coverage available for any retired employee of the local government who elects within 60 days after the effective date of retirement to participate in that coverage and, at the option of the retired employee, for the spouse of the retired employee and any unmarried children under 18 years of age. The health care insurance coverage shall be made available for a retired employee until the retired employee becomes eligible for federal Medicare coverage, for the spouse of a retired employee until the spouse becomes eligible for federal Medicare coverage and for a child until the child arrives at majority, and may, but need not, be made available thereafter. The governing body may prescribe reasonable terms and conditions of eligibility and coverage, not inconsistent with this section, for making the health care insurance coverage available. The local government may pay none of the cost of making that coverage available or may agree, by collective bargaining agreement or otherwise, to pay part or all of that cost.

[(3)(a)] (3) A local government and a health care insurer may not create a group solely for the purpose of rating or of establishing a premium for health care insurance coverage of retired employees and their dependents that is separate from the group for health care insurance coverage of officers and employees of the local government and their dependents. Nothing in this subsection prevents a local government from allocating rates or premiums differently among retired employees and their dependents and officers and employees of the local government and their dependents once the rating or premium is established.

[(b) A health care insurer may not establish a higher premium for retired employees and their dependents than the premium established for officers and employees of the local government and their dependents.]

SECTION 2. The amendments to ORS 243.303 by section 1 of this 2003 Act apply to health care insurance coverage made available to retirees on or after the effective date of this 2003 Act.

SECTION 3. This 2003 Act being necessary for the immediate preservation of the public peace, health and safety, an emergency is declared to exist, and this 2003 Act takes effect on its passage.

Approved by the Governor August 21, 2003

Filed in the office of Secretary of State August 21, 2003

Effective date August 21, 2003

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