38-782

38-782. Group health and accident coverage for
retired public employees and elected officials and their
dependents

A. The board shall establish group health and accident coverage for eligible
retired and disabled members and their dependents. Eligible retired and disabled members
are those members who are receiving retirement benefits from ASRS or long-term disability
benefits pursuant to section 38-651.03 or article 2.1 of this chapter and who elect not
to obtain health and accident insurance through their former employer. If an insured
retired or disabled member dies before the insured member's dependent beneficiary or an
insured surviving dependent, the dependent beneficiary or insured surviving dependent is
entitled to coverage at group rates if the dependent beneficiary or surviving dependent
elects to continue in the coverage within six months of the insured member's death and
the dependent beneficiary or surviving dependent agrees to pay the cost of the premium
for group health and accident insurance. On notification of the insured member's death,
the board shall immediately notify a dependent beneficiary or an insured surviving
dependent of the provisions of this section.

B. Retired members of the public safety personnel retirement system, the elected
officials' retirement plan, the corrections officer retirement plan or the optional
retirement programs authorized pursuant to sections 15-1451 and 15-1628 and their
dependents who are receiving benefits from the public safety personnel retirement system,
the elected officials' retirement plan, the corrections officer retirement plan or the
optional retirement programs authorized pursuant to sections 15-1451 and 15-1628 and who
are not covered by section 38-651.01 may participate in group health and accident
coverage provided pursuant to this section. On the death of an insured member of the
public safety personnel retirement system, the elected officials' retirement plan, the
corrections officer retirement plan or the optional retirement programs authorized
pursuant to sections 15-1451 and 15-1628, the insured surviving dependent is entitled to
coverage at group rates. Except as provided in subsection H of this section, the
surviving dependent shall be charged amounts that are sufficient to pay for the premium
and administrative expense of providing the coverage.

C. The board may enter into agreements with retired and disabled members of ASRS
who elect to obtain the coverage provided pursuant to subsection A of this
section. Those agreements may include provisions for the deduction from the retirement
benefits of the members who elect to obtain the coverage of amounts sufficient to pay for
the premium not covered under retirement benefits and the administrative expense of
providing the coverage.

D. The board of trustees of the public safety personnel retirement system may enter
into agreements with retired members of the public safety personnel retirement system,
the elected officials' retirement plan, the corrections officer retirement plan and their
dependents who elect to obtain the coverage provided pursuant to this section. Those
agreements may include provisions for the deduction from the retirement benefits of the
members who elect to obtain the coverage of amounts sufficient to pay for the premium not
covered under their retirement benefits and the administrative expense of providing the
coverage.

E. The board may enter into agreements with retired members of the optional
retirement programs authorized pursuant to sections 15-1451 and 15-1628 and their
dependents who elect to obtain the coverage provided pursuant to this section. Those
agreements may include provisions for the payment of amounts sufficient to pay for the
premium and administrative expense of providing the coverage.

F. If an insured member receiving long-term disability benefits pursuant to article
2.1 of this chapter becomes ineligible for the long-term disability benefits, the member
and the covered dependents of the member may continue to participate in the group health
and accident coverage provided pursuant to this section subject to the following
conditions:

1. Participation in the coverage is limited to twelve months from the date the
member ceases eligibility for benefits under article 2.1 of this chapter or the member
commences employment, whichever occurs first.

2. The member shall pay the full premium cost of the coverage selected, and the
member is not eligible for benefits pursuant to section 38-783.

3. If a member who participates in the coverage dies during the twelve month period
provided by this subsection, covered dependents of the member may continue coverage after
the death of the member through the end of the twelve month period. Covered dependents of
the member who continue coverage pursuant to this paragraph shall pay the full premium
cost of the coverage selected and are not eligible for benefits pursuant to section
38-783.

G. Retired or disabled members who are not eligible for medicare, who live in this
state, who enroll in a qualifying health maintenance organization under this section and
who reside outside the area of a qualifying health maintenance organization shall be
offered the option of enrolling with a qualified health maintenance organization offered
through their provider under the same premiums as if they lived within the area
boundaries of the qualified health maintenance organization provided that:

1. All medical services are rendered and received at an office designated by the
qualifying health maintenance organization or at a facility referred by the health
maintenance organization.

2. All nonemergency or nonurgent travel, ambulatory and other expenses from the
residence area of the member to the designated office of the qualifying health
maintenance organization or the facility referred by the health maintenance organization
are the responsibility of and at the expense of the member.

3. All emergency or urgent travel, ambulatory and other expenses from the residence
area of the member to the designated office of the qualifying health maintenance
organization or the facility referred by the health maintenance organization shall be
paid pursuant to any agreement between the health maintenance organization and the member
living outside the area of the qualifying health maintenance organization.

H. Public monies shall not be spent to pay all or any part of the insurance premium
pursuant to this section except for monies authorized to be paid for any insured from the
retirement plan from which the insured is receiving benefits.