KRS 18A.226: Group Health Insurance Board -- Members -- Duties.

(1) To provide quality, affordable health insurance coverage so that the Commonwealth

can attract and retain able and dedicated public employees, and to facilitate the need

for comprehensive and efficient planning, implementation, and administration of a

state employee health insurance program in order to meet this goal, the Kentucky

Group Health Insurance Board is created. The board shall be attached to the

Personnel Cabinet for administrative purposes only. The board shall consist of

thirteen (13) members as follows:

(a) The secretary of the Finance and Administration Cabinet;

(b) The secretary of the Personnel Cabinet;

(c) The state budget director;

(d) The commissioner of education;

(e) The chair of the Advisory Committee of State Health Insurance Subscribers;

(f) The commissioner of insurance, ex officio;

(g) The Auditor of Public Accounts, ex officio;

(h) The Director of the Administrative Office of the Courts, or his designee;

(i) One (1) retired state employee appointed by the Kentucky Retirement

Systems, who shall serve an initial term of one (1) year;

(j) One (1) retired teacher appointed by the Teachers' Retirement System, who

shall serve an initial term of two (2) years;

(k) One (1) active teacher appointed by the organization with the largest number

of teacher members on payroll deduction, who shall serve an initial term of

one (1) year;

(l) One (1) active state employee appointed by the organization with the largest

number of state employee members on payroll deduction, who shall serve an

initial term of two (2) years; and

(m) One (1) active classified education support employee appointed by the

organization with the largest number of classified education support employee

members on payroll deduction, who shall serve an initial term of one (1) year.

As each appointed member's term expires, the vacancy created shall be filled by the

appointing authority for that position for a term of two (2) years. An appointment to

fill an unexpired term of an appointed member shall be made by the designated

appointing authority for the remainder of the term. Appointed terms shall begin

effective October 1.

(2) The members of the board shall elect from among its members a chair and a vice

chair.

(3) Regular meetings of the board shall be held at least once every month at a place,

day, and time determined by the board. Special meetings of the board shall be held

when needed as determined by the chair. If seven (7) or more members of the board

request in writing that the chair call a special meeting, the chair shall call a special

meeting. The meetings shall operate in accordance with the provisions of the Open

Meetings Law under KRS 61.805 to 61.850.

(4) Members of the board shall receive reimbursement for necessary expenses for

attendance at official board meetings or public hearings.

(5) The Kentucky Group Health Insurance Board shall:

(a) Engage in analyses and research to identify the factors and parameters that

affect the state group health insurance program;

(b) Develop and transmit, by October 1 of each year beginn ing October 1, 2001,

to the Governor, the General Assembly, and the Chief Justice of the Supreme

Court, policy recommendations regarding benefit options and management of

the state group health insurance program; and

(c) Provide in the first report, due by October 1, 2001, the following:

1. Analysis and discussion of methods used by all other states to provide

health insurance benefits to their state group; and

2. Analysis and discussion of the cost, enrollment, claims, and utilization

data for calendar year 2000 on the Kentucky state group; and

3. Recommendations including but not limited to appropriate structures for

the state contribution rate which shall include recommendations on

increasing the state contribution to provide support for dependent

coverage, possible methods to mitigate adverse selection, competitive

plan designs by type and benefit options, the feasibility of a state self -

insurance plan, and strategies for evaluating third -party administrators

and vendors.