You asked if any legislation has been proposed in the 2007 session or in recent past sessions to increase the state subsidy for local district health insurance coverage for retired teachers.

BACKGROUND

Health insurance for retired teachers is provided either by the Teachers' Retirement System (TRS) or by the retiree's last employing board of education. Those who participate in Medicare Part A may participate a Medicare supplement plan provided by TRS. Those who do not must be offered coverage by their last employing board of education. Boards must offer retirees the same plan they offer their active teachers.

The Teachers' Retirement Board (TRB) sends a subsidy to local boards to cover part of the cost of the premiums for retirees participating in local board plans. Since 2000, this subsidy has been frozen at the same dollar amount as the cost for the TRB plan in 1997-98 ($ 110 per individual, per month). If the premium for the local board's plan is more than the state subsidy, the local board may pay the difference itself out of local funds or require the retiree to pay the difference. The cost of the state subsidy is shared by the state and the active teachers, who contribute 1. 25% of their annual salary to help fund retiree health coverage.

2007 SESSION

There are two raised bills pending in the 2007 session that would increase the $ 110 state subsidy. Both are currently under consideration in the Appropriations Committee. The committee's deadline for acting on bills is April 19.

HB 7339 increases the subsidy to $ 250 per person per month from July 1, 2007 through June 30, 2008. It increases the subsidy each year thereafter by the percentage increase in the Consumer Price Index for health care or 4%, whichever is greater. The bill also increases the active teachers' contributions for retired teachers' health coverage from the current 1. 25% of salary to 1. 5% from July 1, 2007 through June 30, 2008 and 1. 75% thereafter.

SB 112, reported favorably to the Appropriations Committee by the Insurance and Real Estate Committee, increases the state subsidy to $ 220 per person per month from July 1, 2007 through June 30, 2008. In each year thereafter, the bill increases the subsidy by the percentage increase in the Consumer Price Index for medical care during the previous calendar year.

2003-2006 SESSIONS

In the four sessions before the current session, two raised bills were introduced by legislative committees to increase the subsidy. In 2005, sHB 6931 would have increased the $ 110 subsidy annually by the percentage increase in the national Consumer Price Index for health care over the previous calendar year. The automatic annual increases would have taken effect July 1, 2007. The Appropriations Committee reported the bill favorably, but it died on the House calendar without any further legislative action.

In 2006, the Insurance Committee raised HB 5609, which is identical to SB 112 of the 2007 session (see above). Insurance reported the bill favorably to the Appropriations Committee, but that committee took no action on it.

There were no bills raised in the 2003 or 2004 sessions to increase the TRB subsidy for local school district premiums for retired teachers participating in their active teacher health plans.

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