Bill > S2113

This bill proposes to amend Section 6 of chapter 32A by adding a new paragraph that establishes a health reimbursement arrangement for retired state employees whose pension benefits are lower than the average pension benefit for members of the state retirement system, as detailed in the latest actuarial valuation report from the Public Employee Retirement Administration Commission (PERAC). The Commonwealth will contribute its portion of federal subsidies received from the retiree drug subsidy program, established by the Medicare Prescription Drug, Improvement and Modernization Act of 2003, into this new arrangement. The PERAC can then use these funds to reimburse eligible retired state employees for deductibles and copayments they've paid for covered medical services in a fiscal year, provided these costs exceed limits set by PERAC, but not exceeding the maximum deductibles and copayments found in the current plans offered by PERAC. The PERAC can also use funds from this arrangement to cover its administrative costs.