(a)The state, excluding state educational
institutions, may not purchase or maintain a policy of group insurance,
except:
(1)life insurance for the state's employees;
(2)long term care insurance under a long term care insurance
policy (as defined in IC 27-8-12-5), for the state's employees; or
(3)an insurance policy that provides coverage that supplements
coverage provided under a United States military health care plan.
(b)With the consent of the governor, the state personnel department
may establish self-insurance programs to provide group insurance other
than life or long term care insurance for state employees and retired
state employees. The state personnel department may contract with a
private agency, business firm, limited liability company, or corporation
for administrative s
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(a) The state, excluding state educational
institutions, may not purchase or maintain a policy of group insurance,
except:
(1) life insurance for the state's employees;
(2) long term care insurance under a long term care insurance
policy (as defined in IC 27-8-12-5), for the state's employees; or
(3) an insurance policy that provides coverage that supplements
coverage provided under a United States military health care plan.
(b) With the consent of the governor, the state personnel department
may establish self-insurance programs to provide group insurance other
than life or long term care insurance for state employees and retired
state employees. The state personnel department may contract with a
private agency, business firm, limited liability company, or corporation
for administrative services. A commission may not be paid for the
placement of the contract. The department may require, as part of a
contract for administrative services, that the provider of the
administrative services offer to an employee terminating state
employment the option to purchase, without evidence of insurability,
an individual policy of insurance.
(c) Notwithstanding subsection (a), with the consent of the
governor, the state personnel department may contract for health
services for state employees through one (1) or more prepaid health
care delivery plans.
(d) The state personnel department shall adopt rules under IC 4-22-2
to establish long term and short term disability plans for state
employees (except employees who hold elected offices (as defined by
IC 3-5-2.1-34)). The plans adopted under this subsection may include
any provisions the department considers necessary and proper and
must:
(1) require participation in the plan by employees with six (6)
months of continuous, full-time service;
(2) require an employee to make a contribution to the plan in the
form of a payroll deduction;
(3) require that an employee's benefits under the short term
disability plan be subject to a thirty (30) day elimination period
and that benefits under the long term plan be subject to a six (6)
month elimination period;
(4) prohibit the termination of an employee who is eligible for
benefits under the plan;
(5) except as provided in section 25 of this chapter, provide, after
a seven (7) day elimination period, eighty percent (80%) of base
biweekly wages for an employee disabled by injuries resulting
from tortious acts, as distinguished from passive negligence, that
occur within the employee's scope of state employment;
(6) provide that an employee's benefits under the plan may be
reduced, dollar for dollar, if the employee derives income from:
(A) Social Security;
(B) the public employees' retirement fund;
(C) the Indiana state teachers' retirement fund;
(D) pension disability;
(E) worker's compensation;
(F) benefits provided from another employer's group plan; or
(G) remuneration for employment entered into after the
disability was incurred.
(The department of state revenue and the department of workforce
development shall cooperate with the state personnel department
to confirm that an employee has disclosed complete and accurate
information necessary to administer this subdivision.);
(7) provide that an employee will not receive benefits under the
plan for a disability resulting from causes specified in the rules;
and
(8) provide that, if an employee refuses to:
(A) accept work assignments appropriate to the employee's
medical condition;
(B) submit information necessary for claim administration; or
(C) submit to examinations by designated physicians;
the employee forfeits benefits under the plan.
(e) This section does not affect insurance for retirees under IC 5-10.3 or IC 5-10.4.
(f) The state may pay part of the cost of self-insurance or prepaid
health care delivery plans for its employees.
(g) A state agency may not provide any insurance benefits to its
employees that are not generally available to other state employees,
unless specifically authorized by law.
(h) The state may pay a part of the cost of group medical and life
coverage for its employees.
(i) To carry out the purposes of this section, a trust fund may be
established. The trust fund established under this subsection is
considered a trust fund for purposes of IC 4-9.1-1-7. Money may not be
transferred, assigned, or otherwise removed from the trust fund
established under this subsection by the state board of finance, the
budget agency, or any other state agency. Money in a trust fund
established under this subsection does not revert to the state general
fund at the end of any state fiscal year. The trust fund established under
this subsection consists of appropriations, revenues, or transfers to the
trust fund under IC 4-12-1. Contributions to the trust fund are
irrevocable. The trust fund must be limited to providing prefunding of
annual required contributions and to cover OPEB liability for covered
individuals. Funds may be used only for these purposes and not to
increase benefits or reduce premiums. The trust fund shall be
established to comply with and be administered in a manner that
satisfies the Internal Revenue Code requirements concerning a trust
fund for prefunding annual required contributions and for covering
OPEB liability for covered individuals. All assets in the trust fund
established under this subsection:
(1) are dedicated exclusively to providing benefits to covered
individuals and their beneficiaries according to the terms of the
health plan; and
(2) are exempt from levy, sale, garnishment, attachment, or other
legal process.
The trust fund established under this subsection shall be administered
by the state personnel department. The expenses of administering the
trust fund shall be paid from money in the trust fund. Notwithstanding
IC 5-13, the treasurer of state shall invest the money in the trust fund
not currently needed to meet the obligations of the trust fund in the
same manner as money may be invested by the public employees'
retirement fund under IC 5-10.3-5. However, the trustee may not invest
the money in the trust in equity securities. The trustee shall also comply
with the prudent investor rule set forth in IC 30-4-3.5. The trustee may
contract with investment management professionals, investment
advisors, and legal counsel to assist in the investment of the trust and
may pay the state expenses incurred under those contracts from the
trust. Interest that accrues from these investments shall be deposited in
the trust fund.
(j) Nothing in this section prohibits the state personnel department
from directly contracting with health care providers for health care
services for state employees.