HOUSE BILL NO. 1516

By Representatives McDonald, Cross, Newton, Westmoreland, Walley, Windle, Ridgeway, Miller, Fitzhugh, Maddox, McDaniels

Substituted for: Senate Bill No. 1201

By Senator Graves

AN ACT to amend Tennessee Code Annotated, Title 8, Chapter 27, Part 2, relative to retirees participating in the state group insurance plan.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:

SECTION 1. Tennessee Code Annotated, Section 8-27-201, is amended by adding the following as a new subsection (f) and by redesignating the subsequent subsections accordingly:

(f) Any retired state employee who is participating in the insurance plan authorized by this section and who is in receipt of a disability retirement allowance pursuant to chapter 36, part 5 of this title, shall not be required to discontinue coverage in the basic medical plan authorized by subdivision (a)(1) upon eligibility for Part A of Medicare and may continue in the plan as a retired employee to the point at which Medicare eligibility would have been attained had the disability not occurred; provided, that such retired employee remains eligible for the disability retirement allowance and that Part B of Medicare is retained. The insurance premium shall be the same as that charged to non-disability retirees who are not yet eligible for Medicare. Any retired state employee who is granted a service retirement under the provisions of Tennessee Code Annotated, Title 8, Chapter 36, shall also qualify for a continuation of insurance coverage if they meet the conditions set forth in this subsection and the eligibility criteria established by the State Insurance Committee.

SECTION 2. Implementation of the provisions of this act shall be subject to the funding being provided in the General Appropriations Act.

SECTION 3. This act shall take effect on July 1, 1997, the public welfare requiring it.