Senate Bill S2161

                                BILL NUMBER:S2161

TITLE OF BILL:

An act to amend the civil service law, in relation to increasing local
government participation in the Empire Plan Prescription Drug Plan

PURPOSE:

This bill would permit eligible agencies (counties, cities, towns,
villages, school districts or other municipal entities) to participate
in the Empire Plan Prescription Drug Plan without being required to
also become a participating agency under both the medical and drug
plans provided by the New York State Health Insurance Plan (NYSHIP).

SUMMARY OF PROVISIONS:

Section 1. Amends the Civil Service law by adding a new section 163-b
authorizing counties, cities, towns, villages, school districts or
other municipal entities to participate solely in the Empire Plan
Prescription Drug Plan. The Department of Civil Service will
promulgate rules and regulations for participation in such plan.

Section 2. Effective date.

EXISTING LAW:
              

NYSHIP offers participating employers a prescription drug benefit that
provides coverage for drugs dispensed via retail pharmacies or mail
order. Employers who do not participate in NYSHIP are currently not
allowed to participate in the Empire Plan's drug benefit.

JUSTIFICATION:

This legislation will allow counties, cities, towns, villages, school
districts or other municipal entities, many of which do not
participate in NYSHIP, to buy-in to its comparatively less expensive
Empire prescription drug plan, without having to buy into the whole
medical/hospital NYSHIP plan.

The New York State Health Insurance Program (NYSHIP) was established
in 1957 for State employees. The next year, NYSHIP opened to local
governments and school districts. Now, more than 50 years later,
NYSHIP is the largest public employer health insurance program in the
nation, outside the Federal government. NYSHIP protects over 1.2
million state and local government employees, retirees, and their
families. 800 local government entities have already joined NYSHIP
because of the dependability and financial stability that come from
NYSHIP's size, experience and $4.7 billion in annual premiums.

This bill would allow non-NYSHIP participating employers to opt into a
stand-alone prescription drug plan utilizing the Empire Plan's
contracts and structure. This bill is a modification of a
recommendation from the Task Force on Retiree Health Insurance.

LEGISLATIVE HISTORY:


2013-14: S1202 - Civil Service & Pensions Committee
2011-12: S2996 - Civil Service & Pensions Committee

FISCAL IMPLICATIONS:

Possible cost savings to counties, cities, towns, villages, school
districts or other municipal entities who opt-in to the program.

EFFECTIVE DATE:

This act shall take effect on the one hundred eightieth day after it
shall have become a law.