Increases local government participation in the Empire Plan Prescription Drug Plan

BILL NUMBER:S2161

Title of bill

An act to amend the civil service law, in relation to increasing local government participation in the Empire Plan Prescription Drug Plan

Purpose

This bill would permit eligible agencies (counties, cities, towns, villages, school districts or other municipal entities) to participate in the Empire Plan Prescription Drug Plan without being required to also become a participating agency under both the medical and drug plans provided by the New York State Health Insurance Plan (NYSHIP).

Summary of provisions

Section 1. Amends the Civil Service law by adding a new section 163-b authorizing counties, cities, towns, villages, school districts or other municipal entities to participate solely in the Empire Plan Prescription Drug Plan. The Department of Civil Service will promulgate rules and regulations for participation in such plan.

Section 2. Effective date.

Existing law

NYSHIP offers participating employers a prescription drug benefit that provides coverage for drugs dispensed via retail pharmacies or mail order. Employers who do not participate in NYSHIP are currently not allowed to participate in the Empire Plan's drug benefit.

Justification

This legislation will allow counties, cities, towns, villages, school districts or other municipal entities, many of which do not participate in NYSHIP, to buy-in to its comparatively less expensive Empire prescription drug plan, without having to buy into the whole medical/hospital NYSHIP plan.

The New York State Health Insurance Program (NYSHIP) was established in 1957 for State employees. The next year, NYSHIP opened to local governments and school districts. Now, more than 50 years later, NYSHIP is the largest public employer health insurance program in the nation, outside the Federal government. NYSHIP protects over 1.2 million state and local government employees, retirees, and their families. 800 local government entities have already joined NYSHIP because of the dependability and financial stability that come from NYSHIP's size, experience and $4.7 billion in annual premiums.

This bill would allow non-NYSHIP participating employers to opt into a stand-alone prescription drug plan utilizing the Empire Plan's contracts and structure. This bill is a modification of a recommendation from the Task Force on Retiree Health Insurance.

Legislative history

2013-14: S1202 - Civil Service & Pensions Committee 2011-12: S2996 - Civil Service & Pensions Committee

Fiscal implications

Possible cost savings to counties, cities, towns, villages, school districts or other municipal entities who opt-in to the program.

Effective date

This act shall take effect on the one hundred eightieth day after it shall have become a law.