An Act to Amend the Membership of the State Employee Health
Maine Legislature, Session 132, LD 0707
Sponsors: MATHIESON
Amends: 5 MRSA §285-A, 5 MRSA §285, 5 MRSA §286, 5 MRSA §286-M, 5 MRSA §286-N, 20-A MRSA §13451

Legislative Document
No. 707
H.P. 446
House of Representatives, February 25, 2025
An Act to Amend the Membership of the State Employee Health 
Commission and Make Referential Changes to the Office of 
Employee Health, Wellness and Workers' Compensation
Submitted by the Department of Administrative and Financial Services pursuant to Joint 
Rule 204.
Received by the Clerk of the House on February 20, 2025.  Referred to the Committee on 
Health Coverage, Insurance and Financial Services pursuant to Joint Rule 308.2 and ordered 
printed pursuant to Joint Rule 401.
ROBERT B. HUNT
Clerk
Presented by Representative MATHIESON of Kittery.
Be it enacted by the People of the State of Maine as follows:
PART A
Sec. A-1.  5 MRSA §285-A, sub-§2, as amended by PL 2021, c. 312, §3 and c. 548, 
§45, is further amended to read:
2.  Membership.  The State Employee Health Commission consists of 24 labor and 
management members as follows:
A.  One labor member from each bargaining unit recognized under Title 26, chapter 
9‑B, appointed by the employee organization certified to represent the unit;
B.  One labor member from the largest bargaining unit recognized under Title 26, 
chapter 14, appointed by the employee organization authorized to represent the unit;
C.  One labor member appointed by the retiree chapters of the Maine State Employees 
Association;
C-1.  One labor member from Maine Turnpike Authority employees appointed by the 
employee organization authorized to represent the employees;
C-2.  One labor member from Maine Public Employees Retirement System employees, 
appointed by the employee organization authorized to represent the employees;
C-3.  One labor member from Maine Maritime Academy employees, appointed by the 
employee organization authorized to represent the employees;
D.  Four management members appointed by the Commissioner of Administrative and 
Financial Services;
E.  One management member appointed by the Court Administrators;
F.  The Executive Director of Employee Health and, Wellness and Workers' 
Compensation, ex officio;
F-1.  The State Human Resources Officer, ex officio;
G.  One member representing retirees appointed by the Maine Association of Retirees;
H.  One labor member from the Maine Community College System faculty or 
administrative unit, appointed by the employee organization authorized to represent 
the units;
I.  One management member from the Maine Community College System appointed 
by the President of the Maine Community College System;
J.  One management member appointed by the Executive Director of the Maine 
Turnpike Authority;
K.  One management member appointed by the Chief Executive Officer of the Maine 
Public Employees Retirement System; and
L.  One management member appointed by the President of the Maine Maritime 
Academy.
All appointed or elected members serve at the pleasure of their appointing or electing 
authorities.
Sec. A-2.  5 MRSA §285-A, sub-§3, as corrected by RR 2023, c. 1, §1 and affected 
by §50, is 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 State Human Resources 
Officer or the officer's designee designated by the Commissioner of Administrative and 
Financial Services from among the management members appointed by the Commissioner 
of Administrative and Financial Services.
PART B
Sec. B-1.  5 MRSA §285, sub-§1-A, ¶D, as amended by PL 2021, c. 312, §1, 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 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 Office of Employee Health and, Wellness and Workers' Compensation 
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 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. B-2.  5 MRSA §285-A, sub-§1, as amended by PL 2021, c. 312, §2 and PL 
2023, c. 412, §3, 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 provide counsel to the Executive 
Director of Employee Health and, Wellness and Workers' Compensation and the State 
Human Resources Officer on health and dental insurance issues, the state living resources 
program and other issues concerning employee health and, wellness and workers' 
compensation.
Sec. B-3.  5 MRSA §286, as amended by PL 2021, c. 312, §§4 and 5 and PL 2023, 
c. 412, §3, is further amended to read:
§286.  Administration
The Commissioner of Administrative and Financial Services has responsibility for the 
state employee health insurance program through the Office of Employee Health and, 
Wellness and Workers' Compensation that is established as part of the organization of the 
Bureau of Human Resources.  The office is headed by the Executive Director of Employee 
Health and, Wellness and Workers' Compensation.  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 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.
Appeals by eligible employees or retirees shall must be to hearing officers designated 
by the commission.
The cost of administration of the state employee health insurance program shall must 
be funded from an administrative allowance to be negotiated by the commission with the 
health benefit carrier or carriers.  Indirect costs may not be allocated to the program.
The commissioner shall establish the Accident, Sickness and Health Insurance Internal 
Service Fund through the State Controller in which health insurance and dental insurance 
premiums collected from state departments and agencies and other plan participants, 
premium dividends, return of premiums resulting from risk reduction programs and any 
other receipts must be deposited to be used for the purposes of the state employee health 
insurance program.  The fund is a continuing fund and may not lapse.  Interest earned from 
investment of the fund shall must be credited to the fund.
An annual report shall must be prepared for the Governor concerning the number of 
participants, premiums charged, utilization of benefits and operating costs.  The report shall 
must also include recommendations regarding future operation of the program.
A reserve fund, administered by the Executive Director of Employee Health and, 
Wellness and Workers' Compensation and the State Human Resources Officer 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.
The reserve fund is capitalized by money from premium payments and by legislative 
appropriation, payments from state departments and agencies and by such other means as 
the Legislature may approve.  All money in the fund is deemed to be the commingled assets 
of all the covered employees and must be used only for the purposes of this section.
Sec. B-4.  5 MRSA §286-M, sub-§2, ¶C, as amended by PL 2021, c. 312, §6, is 
further amended to read:
C.  "Division" means the Department of Administrative and Financial Services, Office 
of Employee Health and, Wellness and Workers' Compensation.
Sec. B-5.  5 MRSA §286-N, sub-§1, ¶B, as enacted by PL 2019, c. 446, §5, is 
amended to read:
B.  Two ex officio nonvoting members as follows:
(1)  The executive director of the office of employee health and benefits Executive 
Director of Employee Health, Wellness and Workers' Compensation within the 
Department of Administrative and Financial Services, Bureau of Human 
Resources or the executive director's designee; and
(2)  The employee of the Department of Administrative and Financial Services, 
Bureau of Human Resources, office of employee health and benefits Office of 
Employee Health, Wellness and Workers' Compensation assigned to the program.
Sec. B-6.  5 MRSA §286-N, sub-§3, as enacted by PL 2019, c. 446, §5, is amended 
to read:
3.  Chair.  The executive director of the office of employee health and benefits 
Executive Director of Employee Health, Wellness and Workers' Compensation within the 
Department of Administrative and Financial Services, Bureau of Human Resources, or the 
executive director's designee, shall serve as chair.
Sec. B-7.  20-A MRSA §13451, sub-§3, as amended by PL 2023, c. 412, Pt. 
OOOOO, §§1 to 3, is further amended by amending the 2nd blocked paragraph to read:
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 and, Wellness and Workers' Compensation within the 
Department of Administrative and Financial Services.
SUMMARY
This bill adds a member to the State Employee Health Commission and changes the 
name of the Office of Employee Health and Wellness within the Department of 
Administrative and Financial Services to the Office of Employee Health, Wellness and 
Workers' Compensation.
Part A of the bill adds the State Human Resources Officer as an ex officio member of 
the State Employee Health Commission.  It also provides that the management cochair of 
the commission is designated by the Commissioner of Administrative and Financial 
Services from among the management members appointed by the Commissioner of 
Administrative and Financial Services.
Part B of the bill replaces statutory references to the Office of Employee Health and 
Wellness and its executive director with the office's new title.