TO AMEND THE LAW CONCERNING THE ELIGIBILITY OF CERTAIN RETIRED EMPLOYEES UNDER THE STATE AND PUBLIC SCHOOL LIFE AND HEALTH INSURANCE PROGRAM.

New coverage rules for Arkansas retirees

The law sets enrollment rules for Arkansas's State and Public School Life and Health Insurance Program. State and public school retirees need at least five total years in the program before retirement. They must also be vested in a qualifying retirement plan, retired, and drawing retirement benefits. Qualifying plans include Arkansas's public employee, teacher, highway employee, and judicial retirement systems, plus the alternate plan defined in state law. The public employee system includes its legislative division and Arkansas National Guard contract personnel. Retirees who become active retirees have 30 days to elect enrollment using Employee Benefits Division forms. Continuing coverage or joining after declining also requires five total years of coverage before employment ends, unless federal law bars that requirement. Retirees who declined at retirement because another employer's group health plan covered them get a one-time enrollment choice after a qualifying event. They must prove continued insurance coverage and document five total years in the state program before retirement. Employees whose fixed-term jobs expire can continue as inactive retirees with five total program years and at least 10 years of creditable service. They have 31 days after termination to elect continued coverage in writing using division forms. Missing that deadline or declining is final, except for the one-time option after other coverage ends. That exception requires confirmation of five total program years, enrollment within 30 days of losing eligibility, and payment of the board-set premium. Eligible inactive retirees become active retirees when they elect retirement benefits and pay the State Board of Finance's rate for their category. After a retiree declines dependent health coverage, a dependent's involuntary loss of employer coverage triggers the applicable eligibility and enrollment rules. Loss caused by fraud or voluntarily ending coverage does not qualify.