Notice of Emergency Rule

DEPARTMENT OF MANAGEMENT SERVICES
Division of State Employees’ Insurance
RULE NO: RULE TITLE
60PER10-1: Benefits
SPECIFIC REASONS FOR FINDING AN IMMEDIATE DANGER TO THE PUBLIC HEALTH, SAFETY OR WELFARE: This year’s General Appropriations Act, which sets the benefits for State of Florida employees, made some important changes to state employee health and life insurance benefits which will become effective July 1, 2010. The Department of Management Services (Department), specifically the Division of State Group Insurance (DSGI) within the Department, must immediately amend Rule 60P-6.0075, F.A.C., to account for these changes in benefits. With this emergency rule amendment to immediate reflect this sessions legislative changes, the regular rule promulgation procedure, rather than the emergency-rule process, will be undertaken to memorialize this delegation.
Without this rule emergency rule, until the Department is able to adopt their new rules following the regular rule promulgation procedure, the actions of DSGI would be open to litigation and rule challenges from the public. Rules which reflect such a drastic change in legislation are critical to ensure the proper functioning of DSGI in handling health insurance claims for all employees Florida State government and their dependents. Absent this emergency rule, which would only “bridge the gap” until the new rules can be adopted through the regular rule promulgation procedure, a lapse in the DSGI’s ability to administer these critical functions would result. If DSGI is unable serve these functions, the safety and welfare of the public that has state group health insurance is put at risk. This emergency rule allows the Department’s seamless transition from the old rule to the new.
With the filing of this emergency rule, a mirror, non-emergency rule is simultaneously being noticed for promulgation. The non-emergency version of this rule will offer all of the protections required by Chapter 120, F.S. This emergency rule version will only be effective for 90 days or until the permanent rule is promulgated, whichever occurs first.
REASON FOR CONCLUDING THAT THE PROCEDURE IS FAIR UNDER THE CIRCUMSTANCES: The Department of Management Services (Department) has determined that the adoption procedures used for this emergency rule is fair given the circumstances. The Department is required to adopt this emergency rule without delay in response to new legislation establishing this critical change in the way state group health insurance is administered. With the filing of this emergency rule, a mirror, non-emergency rule is simultaneously being noticed for promulgation. This non-emergency version of this rule will offer all the notices required by Chapter 120, F.S. This emergency rule version will only be effective for 90 days or until the permanent rule is promulgated, whichever occurs first.
SUMMARY: The State will no longer be offering to cover 100% of the premium payments for state group health insurance for Senior Management Service or Selected Exempt Service employees.
THE PERSON TO BE CONTACTED REGARDING THE EMERGENCY RULE IS: Michelle Robleto, Director, Division of State Group Insurance, Department of Management Services, 4050 Esplanade Way, Tallahassee, FL 32399-0905, telephone (850)921-4658, fax (850)488-0252

THE FULL TEXT OF THE EMERGENCY RULE IS:

60PER10-1 (60P-6.0075) Benefits.

(1) Subject to the limitations provided under the Internal Revenue Code to avoid discrimination, the amount of salary reduction which a participant may elect under the Pretax Premium Plan shall be the aggregate amount of employee premiums for coverage under the State Group Insurance Program.

(2) All participants’ contributions to any reimbursement account under the Program shall be made by salary reduction except in the case of certain participants of the Medical Reimbursement Account whose employment has terminated.

(3) A participant’s gross compensation shall not be affected by participation in any Plan. A participant who contributes to a deferred compensation plan or a tax sheltered annuity may be required to adjust his contributions to such programs. Employee contributions under the State University System Optional Retirement Program will be computed on the participant’s adjusted gross income automatically.

(4) The Subject to the appropriation of funds the State shall pay a monthly contribution towards for the following insurance coverage for each full-time member of the Senior Management Service or Selected Exempt Service as funded annually by the Legislature through the General Appropriations Act, or otherwise absorbed within the existing budget authority of the employing agency, as follows; in addition, the State may pay 100% of the premium for an individual or family dental insurance plan, provided that premiums are funded by the Legislature through the appropriations act or otherwise absorbed within the existing budget authority of the employing agency:

(a) The 100% of the premium for the state individual life insurance policy;

(b) 100% of the premium for the individual or family state group health insurance plan, or up to an equal dollar amount for a health maintenance organization premium; and

(b)(c) The 100% of the premium for the state individual disability insurance policy.; and

(c) The premium for a state group health insurance plan.

THIS EMERGENCY RULE TAKES EFFECT ON July 1, 2010.

Rulemaking Specific Authority 110.161(5), 110.403(1), 110.605(1) FS. Law Implemented 110.161, 110.205(2), 110.403(1)(c), 110.603(2) FS. History–New 8-26-96, Repromulgated 4-25-02, Amended 7-1-10.

THIS RULE TAKES EFFECT UPON BEING FILED WITH THE DEPARTMENT OF STATE UNLESS A LATER TIME AND DATE IS SPECIFIED IN THE RULE.
EFFECTIVE DATE: July 1, 2010