Budget Amendment ID: FY2016-S3-156-R2

2nd Redraft GOV 156

GIC Out-of-Pocket Relief

Mr. Timilty moved that the proposed new text be amended <w:p><w:r><w:t xml:space="preserve">by inserting the following new section:-

“SECTION XX: Section 6 of chapter 32A is hereby further amended by inserting at the end thereof the following new paragraph:-

The commission shall establish a health reimbursement arrangement for retired state employees whose pension benefit is less than the average pension benefit for members of the state retirement system, as reported in the most recent state retirement system actuarial valuation report by the public employee retirement administration commission. The commonwealth shall deposit its share of the federal subsidies, that it receives from the retiree drug subsidy program under the Medicare Prescription Drug, Improvement and Modernization Act of 2003 (P.L. 108-173), into the health reimbursement arrangement established by the commission.  The commission may expend amounts in the health reimbursement arrangement to reimburse a retired state employee, whose pension benefit is less than the amount set forth above, for deductibles and copayments they have paid in a fiscal year for covered services that exceed maximum amounts determined by the commission; provided, however, that the health reimbursement arrangement shall not reimburse for deductibles and copayments that exceed the maximum amounts of deductibles and copayments for covered services in the active plans being provided by the commission. The commission may expend amounts in the health reimbursement arrangement for the costs of administering the arrangement.”