An Act Regarding the State Employee Health Commission
Maine Legislature, Session 130, LD 1311
Committee: State and Local Government
Sponsors: EVANS, ARFORD, BROOKS, DOUDERA, LIBBY, MATHIESON
Amends: 5 MRSA §285, 5 MRSA §285-A, 5 MRSA §286, 5 MRSA §286-M, 20-A MRSA §13451

Legislative Document
No. 1311
H.P. 967
House of Representatives, March 30, 2021
An Act Regarding the State Employee Health Commission
Reference to the Committee on State and Local Government suggested and ordered printed.
ROBERT B. HUNT
Clerk
Presented by Representative EVANS of Dover-Foxcroft.
Cosponsored by Representatives: ARFORD of Brunswick, BROOKS of Lewiston, 
DOUDERA of Camden, LIBBY of Auburn, MATHIESON of Kittery.
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  5 MRSA §285, sub-§1-A, ¶D, as enacted by PL 1997, c. 652, §2 and 
affected by §4 and amended by PL 2007, c. 58, §3, is further amended to read:
D.  If terminating employment but not retiring at that time, have 25 years of creditable 
service under chapter 423, subchapter IV 4 and remain a member of the Maine Public 
Employees Retirement System, make a one-time election to continue coverage from 
the date of termination until retirement and pay the cost of the coverage plus the cost 
incurred by the Division Office of State Employee Health Insurance and Wellness in 
administering coverage under the plan.  If a terminated employee who elects coverage 
under this paragraph fails to pay the cost of coverage and any administrative costs in 
the amount and manner determined by the division office, the coverage may be 
cancelled in accordance with the requirements of Title 24 and Title 24‑A.  Regardless 
of election of coverage or cancellation of coverage under this paragraph, an employee 
terminating employment as provided in this paragraph may elect coverage upon 
retirement under paragraph E; or
Sec. 2.  5 MRSA §285-A, sub-§1, as amended by PL 1991, c. 780, Pt. Y, §25, is 
further amended to read:
1.  Establishment.  The State Employee Health Commission is established to serve as 
trustee of the group health plan in this subchapter and to advise provide counsel to the 
Executive Director of Employee Health Insurance and Wellness and the Director of the 
Bureau of Human Resources on health and dental insurance issues, the state living 
resources program and the Director of the Bureau of Human Resources on other issues 
concerning employee health and wellness and the State Employee Assistance Program.
Sec. 3.  5 MRSA §285-A, sub-§2, ¶F, as amended by PL 1995, c. 97, §1, is further 
amended to read:
F.  The Executive Director of Employee Health Insurance and Wellness, ex officio;
Sec. 4.  5 MRSA §285-A, sub-§3, as amended by PL 1991, c. 780, Pt. Y, §25, is 
further amended to read:
3.  Voting.  All votes of the commission must be one vote cast by labor and one vote 
cast by management.  The votes must be cast by the labor cochair who must be chosen by 
the labor members, and the vote must represent the majority opinion of the labor members 
of the commission, and by the management cochair who is the Director of the Bureau of 
Human Resources or the director's designee.  Votes of the commission must be unanimous 
for action to be taken.
Sec. 5.  5 MRSA §286, first ¶, as amended by PL 1991, c. 780, Pt. Y, §26, is further 
amended to read:
The Commissioner of Administrative and Financial Services has responsibility for the 
state employee health insurance program through the Division Office of State Employee 
Health Insurance and Wellness that is established as part of the organization of the Bureau 
of Human Resources.  The division office is headed by the Executive Director of Employee 
Health Insurance and Wellness.  The executive director has responsibility for the daily 
operation of this program and for the development and maintenance of programs that 
promote the health and safety of the state employees.  Program services must be 
administered through offices, systems, consultants and staff necessary to provide cost-
effective, accessible and responsive services to eligible employees and retirees.  
Administration of the program must be consistent with rules adopted actions taken and 
counsel provided by the State Employee Health Commission.  The executive director and 
the staff of the state employee health insurance program are appointed in accordance with 
the Civil Service Law.
Sec. 6.  5 MRSA §286, 6th ¶, as amended by PL 1991, c. 780, Pt. Y, §27, is further 
amended to read:
A reserve fund, administered by the Executive Director of Employee Health Insurance 
and Wellness and the Director of the Bureau of Human Resources with approval of the 
Commissioner of Administrative and Financial Services, is created to protect the program 
from unexpected losses and self-insured losses and related expenses incurred in the 
provision of health and dental benefits for the eligible participants.  The fund is a continuing 
fund and may not lapse.  The Treasurer of State shall invest the fund.  All proceeds of these 
investments accrue to the fund.
Sec. 7.  5 MRSA §286-M, sub-§2, ¶C, as enacted by PL 2005, c. 636, Pt. A, §3, is 
amended to read:
C.  "Division" means the Department of Administrative and Financial Services, 
Division Office of State Employee Health Insurance and Wellness.
Sec. 8.  20-A MRSA §13451, sub-§3, as amended by PL 2013, c. 368, Pt. H, §3, is 
further amended by amending the last blocked paragraph to read:
For the fiscal years ending June 30, 2012, June 30, 2013, June 30, 2014 and June 30, 2015, 
the State's total cost for retired teachers' health insurance premiums is budgeted at the fiscal 
year 2010-11 funding level adjusted for projected membership growth.  The increase in the 
State's total cost for retired teachers' health insurance premiums for fiscal years ending after 
June 30, 2015 is budgeted at no more than any percentage increase in the Consumer Price 
Index as defined in Title 5, section 17001, subsection 9 plus 3%.  A provider of a health 
insurance benefit plan for retired teachers must make available data related to the provider's 
premium costs and any related data as requested by the Executive Director of Employee 
Health Insurance and Wellness within the Department of Administrative and Financial 
Services.
SUMMARY
This bill makes the following changes to the laws governing the State Employee Health 
Commission and the state employee health insurance program.
1.  It changes the name of the Department of Administrative and Financial Services, 
Division of State Employee Health Insurance to the Office of Employee Health and 
Wellness and changes the name of the office head from the Executive Director of Health 
Insurance to the Executive Director of Employee Health and Wellness.
2.  It states that the duties of the State Employee Health Commission include providing 
counsel to the Executive Director of Employee Health and Wellness and the Director of 
the Bureau of Human Resources on dental insurance and the state living resources program.
3.  It provides that votes of the State Employee Health Commission must be unanimous 
for action to be taken.
4.  It provides that administration of the state employee health insurance program must 
be consistent with actions taken and counsel provided by the State Employee Health 
Commission.