Bill Sponsors
Solomon, Casey, Casimiro, Edwards, Messier, Baginski, and Dawson
Committee
House Finance
Summary
Select
This legislation amends the state's insurance benefit laws to specifically address retired state employees and teachers who are sixty-five years of age or older but are not eligible for Medicare. The bill mandates that these individuals must be allowed to continue purchasing group healthcare insurance benefits through the state. This purchase option is to be made available in the same manner and under the same conditions as those provided to retired employees who have not yet reached the age of sixty-five.
Sponsor
Analysis
Pros for Progressives
- Ensures that elderly public servants who are excluded from the federal Medicare system do not lose access to essential healthcare coverage upon turning 65.
- Protects the health and financial stability of retired teachers and state employees, preventing potential medical bankruptcy due to a lack of insurance options.
- Strengthens the social safety net for a specific vulnerable population that served the public sector, honoring their labor with continued access to care.
Cons for Progressives
- Does not appear to offer a subsidy, meaning retirees may still face high out-of-pocket costs to purchase the insurance, which could be unaffordable for those on fixed incomes.
- Addresses a symptom of a fragmented healthcare system rather than pushing for a universal solution that covers all residents regardless of employment history.
- Maintains a system where healthcare is tied to employment history and ability to pay premiums, rather than healthcare being a guaranteed human right.
Pros for Conservatives
- Requires the retirees to purchase the insurance, implying personal financial responsibility rather than a free government handout.
- Fulfills implied contractual and moral obligations to public servants without necessarily creating a new, unfunded entitlement program.
- Prevents these individuals from becoming indigent and relying on taxpayer-funded emergency care, which could be more costly to the state in the long run.
Cons for Conservatives
- Expands the scope of government involvement in healthcare by keeping individuals on state rolls who would otherwise seek private market solutions.
- Risks increasing the overall cost of the state's insurance risk pool by keeping older, potentially higher-risk individuals in the plan, which could indirectly raise costs for taxpayers.
- Creates a potential slippery slope for future lobbying efforts to subsidize these premiums, eventually shifting more cost burdens onto the state budget.
Constitutional Concerns
None Likely
Impact Overview
Groups Affected
- Retired state employees
- Retired teachers
- Non-Medicare-eligible seniors
- State of Rhode Island (as employer)
- Taxpayers
Towns Affected
All
Cost to Taxpayers
Amount unknown
Revenue Generated
None
BillBuddy Impact Ratings
Importance
Measures population affected and overall level of impact.
Freedom Impact
Level of individual freedom impacted by the bill.
Public Services
How much the bill is likely to impact one or more public services.
Regulatory
Estimated regulatory burden imposed on the subject(s) of the bill.
Clarity of Bill Language
How clear the language of the bill is. Higher ambiguity equals a lower score.
Enforcement Provisions
Measures enforcement provisions and penalties for non-compliance (if applicable).
Environmental Impact
Impact the bill will have on the environment, positive or negative.
Privacy Impact
Impact the bill is likely to have on the privacy of individuals.
Bill Status
Current Status
Held
Comm Passed
Floor Passed
Law
History
• 03/25/2026 Introduced, referred to House Finance
Bill Text
SECTION 1. Section 36-12-4 of the General Laws in Chapter 36-12 entitled "Insurance Benefits" is hereby amended to read as follows:
36-12-4. Coverage of Non-Medicare-eligible retired employees.
(a) Non-Medicare-eligible retired employees who retired on or before September 30, 2008. Any retired employee who retired on or before September 30, 2008, shall be entitled, until attaining Medicare eligibility, to be covered under §§ 36-12-1 — 36-12-5 for himself and herself and, if he or she so desires, his or her non-Medicare-eligible dependents, upon agreeing to pay the total cost of his or her contract at the group rate for active state employees. Payments of any non-Medicare- eligible retired employee for coverage shall be deducted from his or her retirement allowance and remitted from time to time in payment for such contract. In addition, any retired employee who retired on or before September 30, 2008, shall be permitted to purchase coverage for his or her non- Medicare-eligible dependents upon agreeing to pay the additional cost of the contract at the group rate for active state employees. Payment for coverage for these dependents shall be deducted from his or her retirement allowances and remitted as required in payment for the contract.
(b) Non-Medicare-eligible state retirees who retired subsequent to July 1, 1989, and on or before September 30, 2008. Non-Medicare-eligible state retirees who retired subsequent to July 1, 1989, and on or before September 30, 2008, from active service of the state, and who were employees of the state as determined by the retirement board under § 36-8-1, shall be entitled to receive for himself or herself non-Medicare-eligible a retiree healthcare insurance benefit as described in § 36-12-1 in accordance with the following formula:
Years of Service Age at Retirement State's Share Employee's Share 10-15 60 50% 50% 16-22 60 70% 30% 23-27 60 80% 20% 28+ — 90% 10% 28+ 60 100% 0% 35+ any 100% 0%
If the retired employee is receiving a subsidy on September 30, 2008, the state will continue to pay the same subsidy share until the retiree attains age sixty-five (65).
Until December 31, 2013, when the state retiree reaches that age which will qualify him or her for Medicare supplement, the formula shall be:
Years of Service State's Share Employee's Share 10 – 15 50% 50% 16 – 19 70% 30% 20 – 27 90% 10% 28+ 100% 0%
(c) Non-Medicare-eligible retired employees who retire on or after October 1, 2008. Any retired employee who retires on or after October 1, 2008, shall be entitled, until attaining Medicare eligibility, to be covered under §§ 36-12-1 — 36-12-5 for himself and herself and, if he or she so desires, his or her non-Medicare-eligible dependents, upon agreeing to pay the total cost of the contract in the plan in which he or she enrolls. Payments of any non-Medicare-eligible retired employee for coverage shall be deducted from his or her retirement allowance and remitted from time to time in payment for such contract. Any retired employee who retires on or after October 1, 2008, shall be permitted to purchase coverage for his or her non-Medicare-eligible dependents upon agreeing to pay the additional cost of the contract at the group rate for the plan in which the dependent is enrolled. Payment for coverage for dependents shall be deducted from the retired employee’s retirement allowances and remitted as required in payment for the contract. The Director of Administration shall develop and present to the chairpersons of the House Finance Committee and the Senate Finance Committee by May 23, 2008 a retiree health plan option or options to be offered to retirees eligible for state-sponsored medical coverage who are under age sixty-five (65) or are not eligible for Medicare. This plan will have a reduced benefit level and will have an actuarially based premium cost not greater than the premium cost of the plan offered to the active state employee population. This new plan option will be available to employees retiring after LC006175 - Page 2 of 4 September 30, 2008, and their dependents.
(d) Non-Medicare-eligible state retirees who retire on or after October 1, 2008. Non- Medicare-eligible state retirees who retire on or after October 1, 2008, from active service of the state, and who were employees of the state as determined by the retirement board under § 36-8-1, and who have a minimum of twenty (20) years of service, and who are a minimum of fifty-nine (59) years of age, shall be entitled to receive for himself or herself a non-Medicare-eligible retiree healthcare insurance benefit as described in § 36-12-1. The state will subsidize 80% of the cost of the health insurance plan for individual coverage in which the state retiree is enrolled in. Payments for coverage shall be deducted from his or her retirement allowance and remitted from time to time in payment for such contract. Correctional officers as defined in § 28-9.7-3 and those members described in § 36-10-9.2 who have a minimum of twenty-five (25) years of service, and who are a minimum of fifty-five (55) years of age, shall be entitled to receive for themselves a non-Medicare- eligible retiree health care insurance benefit as described in § 36-12-1.
(e) Medicare-eligible state retirees who retire on or after October 1, 2008. Until December 31, 2013, the state shall subsidize eighty percent (80%) of the cost of the Medicare-eligible health insurance plan for individual coverage in which the state retiree is enrolled, provided the employee retired on or after October 1, 2008; has a minimum of twenty (20) years of service; and is a minimum of fifty-nine (59) years of age. Payments for coverage shall be deducted from his or her retirement allowance and remitted from time to time in payment for such health insurance plan.
(f) Retired employees, including retired teachers, who are non-Medicare-eligible and who reach the age of sixty-five (65) shall be allowed to continue to purchase group healthcare insurance benefits in the same manner as those provided to retired employees who have not reached the age of sixty-five (65).
SECTION 2. This act shall take effect upon passage.
36-12-4. Coverage of Non-Medicare-eligible retired employees.
(a) Non-Medicare-eligible retired employees who retired on or before September 30, 2008. Any retired employee who retired on or before September 30, 2008, shall be entitled, until attaining Medicare eligibility, to be covered under §§ 36-12-1 — 36-12-5 for himself and herself and, if he or she so desires, his or her non-Medicare-eligible dependents, upon agreeing to pay the total cost of his or her contract at the group rate for active state employees. Payments of any non-Medicare- eligible retired employee for coverage shall be deducted from his or her retirement allowance and remitted from time to time in payment for such contract. In addition, any retired employee who retired on or before September 30, 2008, shall be permitted to purchase coverage for his or her non- Medicare-eligible dependents upon agreeing to pay the additional cost of the contract at the group rate for active state employees. Payment for coverage for these dependents shall be deducted from his or her retirement allowances and remitted as required in payment for the contract.
(b) Non-Medicare-eligible state retirees who retired subsequent to July 1, 1989, and on or before September 30, 2008. Non-Medicare-eligible state retirees who retired subsequent to July 1, 1989, and on or before September 30, 2008, from active service of the state, and who were employees of the state as determined by the retirement board under § 36-8-1, shall be entitled to receive for himself or herself non-Medicare-eligible a retiree healthcare insurance benefit as described in § 36-12-1 in accordance with the following formula:
Years of Service Age at Retirement State's Share Employee's Share 10-15 60 50% 50% 16-22 60 70% 30% 23-27 60 80% 20% 28+ — 90% 10% 28+ 60 100% 0% 35+ any 100% 0%
If the retired employee is receiving a subsidy on September 30, 2008, the state will continue to pay the same subsidy share until the retiree attains age sixty-five (65).
Until December 31, 2013, when the state retiree reaches that age which will qualify him or her for Medicare supplement, the formula shall be:
Years of Service State's Share Employee's Share 10 – 15 50% 50% 16 – 19 70% 30% 20 – 27 90% 10% 28+ 100% 0%
(c) Non-Medicare-eligible retired employees who retire on or after October 1, 2008. Any retired employee who retires on or after October 1, 2008, shall be entitled, until attaining Medicare eligibility, to be covered under §§ 36-12-1 — 36-12-5 for himself and herself and, if he or she so desires, his or her non-Medicare-eligible dependents, upon agreeing to pay the total cost of the contract in the plan in which he or she enrolls. Payments of any non-Medicare-eligible retired employee for coverage shall be deducted from his or her retirement allowance and remitted from time to time in payment for such contract. Any retired employee who retires on or after October 1, 2008, shall be permitted to purchase coverage for his or her non-Medicare-eligible dependents upon agreeing to pay the additional cost of the contract at the group rate for the plan in which the dependent is enrolled. Payment for coverage for dependents shall be deducted from the retired employee’s retirement allowances and remitted as required in payment for the contract. The Director of Administration shall develop and present to the chairpersons of the House Finance Committee and the Senate Finance Committee by May 23, 2008 a retiree health plan option or options to be offered to retirees eligible for state-sponsored medical coverage who are under age sixty-five (65) or are not eligible for Medicare. This plan will have a reduced benefit level and will have an actuarially based premium cost not greater than the premium cost of the plan offered to the active state employee population. This new plan option will be available to employees retiring after LC006175 - Page 2 of 4 September 30, 2008, and their dependents.
(d) Non-Medicare-eligible state retirees who retire on or after October 1, 2008. Non- Medicare-eligible state retirees who retire on or after October 1, 2008, from active service of the state, and who were employees of the state as determined by the retirement board under § 36-8-1, and who have a minimum of twenty (20) years of service, and who are a minimum of fifty-nine (59) years of age, shall be entitled to receive for himself or herself a non-Medicare-eligible retiree healthcare insurance benefit as described in § 36-12-1. The state will subsidize 80% of the cost of the health insurance plan for individual coverage in which the state retiree is enrolled in. Payments for coverage shall be deducted from his or her retirement allowance and remitted from time to time in payment for such contract. Correctional officers as defined in § 28-9.7-3 and those members described in § 36-10-9.2 who have a minimum of twenty-five (25) years of service, and who are a minimum of fifty-five (55) years of age, shall be entitled to receive for themselves a non-Medicare- eligible retiree health care insurance benefit as described in § 36-12-1.
(e) Medicare-eligible state retirees who retire on or after October 1, 2008. Until December 31, 2013, the state shall subsidize eighty percent (80%) of the cost of the Medicare-eligible health insurance plan for individual coverage in which the state retiree is enrolled, provided the employee retired on or after October 1, 2008; has a minimum of twenty (20) years of service; and is a minimum of fifty-nine (59) years of age. Payments for coverage shall be deducted from his or her retirement allowance and remitted from time to time in payment for such health insurance plan.
(f) Retired employees, including retired teachers, who are non-Medicare-eligible and who reach the age of sixty-five (65) shall be allowed to continue to purchase group healthcare insurance benefits in the same manner as those provided to retired employees who have not reached the age of sixty-five (65).
SECTION 2. This act shall take effect upon passage.