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An Act To Require State Employees To Pay 15% of Their Health Insurance Costs
Be it enacted by the People of the State of Maine as follows:
Sec. 1. 5 MRSA §285, sub-§7,  as amended by PL 2001, c. 439, Pt. XX, §5 and PL 2003, c. 20, Pt. OO, §2 and affected by §4, is further amended to read:
 
7. Payment by State.   Except as otherwise provided in this subsection, the State, through the commission, shall pay 100% of only the employee's share of the individual premium for the standard plan identified and offered by the commission and available to the employee as authorized by the commission, except foras follows: effective October 1, 2009, 95% of the premium; effective July 1, 2010, 90% of the premium; and effective July 1, 2011, 85% of the premium. For Legislators, for whom the State shall pay 50% of the health plan premium for dependent coverage. For any person appointed to a position after November 1, 1981 who is employed less than full time, the State shall pay a share of the employee's share reduced pro rata to reflect the reduced number of work hours. The State may not pay any portion of the health plan premium for a blind person eligible for the group health plan under subsection 1, paragraph H or for a licensed foster parent eligible for the group health plan under subsection 1, paragraph I.
 
For persons who were first employed before July 1, 1991, the State shall pay 100% of only the retiree's share of the premiums for the standard plan identified and offered by the commission and available to the retiree, as authorized by the commission for persons who were previously eligible for this health plan pursuant to subsection 1, paragraph A and who have subsequently become eligible pursuant to subsection 1, paragraph G.
 
For persons who were first employed by the State after July 1, 1991, the State shall pay a pro rata share portion of only the retiree's share of the premiums for the standard plan identified and offered by the commission and available to the retiree, as authorized by the commission for persons who were previously eligible for this health plan pursuant to subsection 1, paragraph A and who have subsequently become eligible pursuant to subsection 1, paragraph G based on the total number of years of participation in the group health plan prior to retirement as follows:

Years of Participation	State Portion	
10 or more years	100% group health plan premium	
9 but less than 10 years	90% group health plan premium	
8 but less than 9 years	80% group health plan premium	
7 but less than 8 years	70% group health plan premium	
6 but less than 7 years	60% group health plan premium	
5 but less than 6 years	50% group health plan premium	
Less than 5 years	No contribution	

Pursuant to Title 20-A, section 12722, subsection 5, this subsection applies to participants in the defined contribution plan offered by the Maine Community College System Board of Trustees under Title 20-A, section 12722.
Sec. 2. Calculation and transfer; health insurance premium contribution savings. Notwithstanding any other provision of law, the State Budget Officer shall calculate the amount of savings in section 1 that applies against each General Fund account for all departments and agencies from savings in the state share of the employee premium contribution and shall transfer the amounts by financial order upon the approval of the Governor. These transfers are considered adjustments to appropriations in fiscal year 2009-10. The State Budget Officer shall provide the Joint Standing Committee on Appropriations and Financial Affairs a report of the transferred amounts no later than February 1, 2010.
 
SUMMARY
This bill reduces the state share of the individual premium for state employees from 100% to 95% effective October 1, 2009, 90% effective July 1, 2010 and 85% effective July 1, 2011.