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JAT'€S R WE LLS, CPA
STATE OF NEVADA
PUBLIC EMPLOYEES' BENEFITS PROGRAM901 S Stewart St€et Sulte 100'1
Carson Citv. Nevada 89701
Telephone (775) 684-7000 (800) 326-5496
Fax (n 5\68+7028
wvwDebo.state nv us
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1 t , t l t 1 , \ 1 . 1 t : , ) .
L€O M. ORODOFf, P.€
NOTICE OF INTENT TO ACT UPONA PROPOSED TEMPORARY REGULATION TOO4-14
Notice of Hearing for the Adoption, Amendment and Repeal of a Regulationofthe Public Employees' Benefits Program
The Board of the Public Employees' Benefits Program (PEBP) will hold a public hearingat 9:00 a.m., on the 2no of April,20l5, at the Richard Bryan Building, 901 South StewartStreet, Room 1002, Carson City, Nevada, and videoconference to the Nevada System ofHigher Education System Office , 4300 S. Maryland Parkway, Board Room, Las Vegas,Nevada. The purpose of the hearing is to receive comments from all interested persons
regarding the adoption, amendment and repeal ofregulations that pertains to chapter 287of the Nevada Administrative Code.
The following information is provided pursuant to the requirements of NRS 2338.0603:
I . The need for and the purpose of the proposed regulation.
The PEBP Board is attempting to address the premiams paid by non-slate, non-Medicare retirees who participate in the PEBP plans. Pursuant to paragraph bof sub-section 4 of section 023 of Nevada Revised Stttutes Chapter 287,
"The governing body ofany counly, school district, municipalcorporalion, polilical subdivision, public corporalion or olher locctlgovernmental agency of this State...Shall pay the same porlion of the costof coverage under the Public Employees' Benefits Program .fbr retiredpersons covered under the Program as lhe State pays pursuanl lo Ij[287.016.for persons retired with stdte service who parlicipate in lheProgram. "
Currently, the subsidies provided by theformer employers ofnon-state, non-Medicare retirees are based on the dollar amount establishedfor Stote, non-Medicare retirees, This calculution results in some non-slate, non-Medicareretirees paying a substantial amountfor their health insurance premiums eachmonth while other non-state, non-Medicare retirees pay less than their State,no n-Medica re retiree co unte rparts.
2. Either the terms or the substance ofthe regulations to be adopted, amended andrepealed or a description of the subjects and issues involved.
3.
The proposed regulation would chdnge the interpretation of NRS
287.023(4)(b) regarding the calculation of "the same portion of the cost ofcoverage" from lhe current subsidy amount which is based on the dollaramount established for State, non-Medicare retirees to the same percentage ofthe premium as is calculated for the subsidyfor State, non-Medicare retirees.
This would result in increasesfor some subsidies paid by local governing
bodies of the counties, school districts, municipal corporations, politicalsubdivisions, public corporotions and other locol government agencies of this
Ststefor theb non-Medicare retirees who participate in the PEBP plans and
decreases for others. Conversely, it would result in lower monthly premiums
for some non-state, non-Medicare relirees antl increasesfor others. See the
attoched proposed regulalion language.
The estimated economic effect of the regulation on the business which it is toregulate and on the public. These must be stated separately and in each case mustinclude:
(a) Both adverse and beneficial effects; and
The proposed regulotion will affecl the amounts local governments withrelirees on the PEBP plans pq, to$'ard theirformer employees' subsidiesbosed on the plan antl tier of coverage selected by the retiree. In somecases, the local government will pay more and the non-state, non-Medicareretiree will pay less and in other cases, the local government will pay less
and the non-state, non-Medicare retiree will pay more. In total, the costelfect is neutral betu,een lhe local governments and the non-state,, non-Medicare retirees enrolled in PEBP plans. It presents no reasonobly
foreseeable or anticipated adverse economic effects to businesses or to thegeneral public.
(b) Both immediate and long term effects:
The elfects of the proposed regulation will begin July I' 2015 antl continueuntil such time as there are no longer non-state, non-Medicare relireesenrolled in PEBP plans.
The estimated cost to the agency for enforcement ofthe proposed regulation.
PEBP does not onticipate the needfor any atlditionul resources to administer
the regulation.
A description ol'and citation to any regulations ofother state or localgovernmental agencies which the proposed regulation overlaps or duplicates and a
statement explaining why the duplication or overlapping is necessary. If the
11
5.
proposed regulation overlaps or duplicates a federal regulation, the notice mustinclude the name of the regulating federal agency.
There are no known state or govemment agency regulations that the proposedre g u I at io n d up I ic ates.
6. Ifthe regulation is required pursuant to federal law, a citation and description ofthe federal law, the name of the organization.
Not applicable.
7. If the regulation includes provisions which are more stringent than a federalregulation that regulates the same activity, a summary of such provisions
Not applicable.
8. Whether the proposed regulation establishes a new fee or increases an existingfee.
This regulation does not provide for a new fee nor an increase to sn existing
fee.
Persons wishing to comment upon the proposed action of Public Employees' BenefitsProgram Board may appear at the scheduled public hearing or may address theircomments, data, views, or arguments, in written form, to the Public Employees' Benefits
Program, Attention: Lori Johnson,901 South Stewart Street, Suite 1001, Carson City,Nevada 89701. Written submissions must be received by the Public Employees' BenefitsProgram on or before Monday March 30, 2015. Ifno person who is directly affected by
the proposed action appears to request time to make an oral presentation, the PublicEmployees' Benefits Program may proceed immediately to act upon any wdttensubmissions.
A copy of this notice and the regulation to be adopted, amended and repealed will be on
file at the State Library, 100 Stewart Street, Carson City, Nevada, for inspection bymembers ofthe public during business hours. Additional copies ofthe notice and theregulation to be adopted, amended and repealed will be available at the PublicEmployees' Benefits Program, g0l South Stewart Street, Suite 1001, Carson City,Nevada, and in all counties libraries in which an office ofthe agency is not maintained, at
the main public library, for inspection and copying by members ofthe public duringbusiness hours. This notice and the lext ofthe proposed regulation are also available inthe State ofNevada Register of Administrative Regulations, which is prepared andpublished monthly by the Legislative Counsel Bureau pursuant to NRS 2338.0653, Thisregulation will also be available at the following websites at lttlp://w\\'\\'.le[.sta1c.nv.usand httns://notice.n\'. qo\'.
Copies of this notice and the proposed regulation will also be mailed to members of thepublic upon request. This information is also available at Public Employees' BenefitsProgram's web site at http://www.pebp.state.nr,.
NRS 2338.064(2) provides: uUpon adoption of any regulation, the agency, if requestedto do so by an interested person, either before adoption or within 30 days thereafter'shall issue a concise statement of the principal reasons for and against its adoption,and incorporate therein its reasonfor overruling the consideration urged against itsadoption."
This notice of hearing has been posted at the additional location locations:
The Legislative Building, 401 South Carson Street, Carson City, Nevada, The BlasdelBuilding, 209 East Musser Street, Carson City; Nevada, The Public Employees' BenefitsProgram, 901 South Stewart Street, Suite 1001, Carson City; Nevada, and The GrantSawyer State Office Building, 555 E. Washington Avenue, Las Vegas, Nevada. Inaddition, the notice was mailed to all State agencies and to groups and individuals as
requested.
Date: January 20,2015
tCB FILE TOO4.14 TEMPORARY REGULATION OF THE PUBTIC
EMPLOYEES' BENEFITS PROGRAM
NAC 287.490 Subsidy for retired officer or employee: Calculation of amount of payment. (NRS287.041, 287.046)
1. Except as otherwise provided in subsection 3J the amount of the subsidy that must be paid byeach public employer with which a retired officer or employee was employed is calculated in themanner set forth in N RS 287.0.16.
2. Effective for months after Julv L. 201.5. portion as used in parasraph b of subsection 4 of NRS
287.023 will be defined as the same percentase of the oremium as the State provides for each retireeand the retiree's dependents pursuant to subsection 3 of NRS 287.046.
f3. Each public employer with which the retired officer or employee was employed shall pay an
amount of the total subsidy for the retired officer or employee equal to the proportion that the servicecredit earned by the retired officer or employee with that public employer bears to the total servicecredit earned by the retired officer or employee with all public employers with which the retired officeror employee was employed. The amount of the total subsidy must be based on the cumulative totalyears and months of service by the retired officer or employer for all public employers with which theretired officer or employee was employed.
(Added to NAC by Bd. ofPub. Employees' Benefits Prog. by Rl54-03, 3-22-2004, eff. 7-1-2004: A bv Rl26-07. l-30-2008)
BRIAN SANDOVALGowmor
JAI'ES R \A'EI.l.S, CPAExecutive Ofticq
STATE OF NEVADA
PUBLIC EMPLOYEES' BENEFITS PROGRAM901 S. Stewart Street, Suite 1001
Carson City, Nevada 8970'l
Telephone (775)68/'-T0Ct . (800) 326-5496
Fat< (T75)68+7028
u VW.pebp.state.nv.us
q*,,iPI,EO M. DROAOFF, P.E.
Board Chaimil
AMENDED Notice of workshop To Solicit Comments on proposedTEMPORARY Regulation T004-14
The Public Employees' Benefits Program, 901 S. Stewart Street, Suite 1001, Carson CityNevada 89701, (775) 684-7000 or (800) 326-5496, is proposing the amendment of aregulation pertaining to chapter 287 of the Nevada Administrative bode. A workshop hasbeen set for no earlier than 9:30 a.m. on November 20, 2014 at the NSHE System Office4300 S Maryland Pkwy Board Room Las Vegas, NV and video conferenced to tttr RichardBryan Building at 901 S. Stewart Street, Suite 1002, Carson City, Nevada The purpose of theworkshop is to solicit comments from interested persons on revisions to NAC )V.qgO,
Subsidy for retired officer or employee: Calculation of amount of payment.
A copy of all materials relating to the proposal may be obtained at the workshop or byaccessing the information at Public Employees' Benefits Program's web site atbttp:/www.pebp.state.nv.us. You may also contact the Public Employees' Benefits program,901 South Stewart Street, Suite 1001, Carson City, Nevada 8970i , els) 6g4-7000 orltoO;326-5496. This Notice of Workshop to Solicit Comments on Proposed permanentRegulation has been posted at the following locations:
NEVADA srATE LIBRARY 201 s. Stewart, carson city; BLASDEL BUILDING, 209East Musser Street, carson city; pUBLIC EMpLoyEES' BENEFITS PROGRAM, 901South Stewart Street, Suite 1001, Carson City, Nevada; THE LEGISLATIVE BUILDING,401 South Carson Street, Carson City. By fax to THE GRANT SAwyER STATE 9FFICEBUILDING, 555 E. Washington Ave Las Vegas Nevada and electronically posted on pEBpwebsite, the Legislative Counsel Bureau and the Administrative Notice sites. In addition,the notice was mailed to all Nevada County Libraries and to groups and individuals asrequested.
Date: 10/30/14
tCB FILE TOO4.14 TEMPORARY REGUTATION OF THE PUBLICEMPLOYEES' BENEFITS PROGRAM
NAC 287.490 Subsidy for retired officer or employee: Calculation of amount of payment. (NRS287 .043 .287 .0461
1. Except as otherwise provided in subsection 2f, the amount of the subsidy that must be paid byeach public employer with which a retired officer or employee was employed is calculated in themanner set forth in NRS 287.046.
287.023 will be defined as the same percentase of the premium as the State provides for each retireeand the retiree's dependents pursuant to subsection 3 of NRS 287.04G.
23. Each public employer with which the retired officer or employee was employed shall pay anamount of the total subsidy for the retired officer or employee equal to the proportion that the servicecredit earned by the retired officer or employee with that public employer bears to the total servicecredit earned by the retired officer or employee with all public employers with which the retired officeror employee was employed. The amount of the total subsidy must be based on the cumulative totalyears and months of service by the retired officer or employer for all public employers with which theretired officer or employee was employed,
(Added to NAC by Bd. of Pub. Employees' Benefits Prog. by Rl54-03, 3-22-2004, eff. 7-l-2004; A by Rl26-07, l-30-2008)
EXISTING FY 2015 RATES
Rate SubsidyParticipant
PremiumRate Subsidy
Participant
Premium
Retiree only 899.16 462.20 436.96 733.17 462.20 270.97
Retiree + Spouse/DP 1,688.44 462.20 1,226.24 1,426.29 462.20 964.09
Retiree + Child(ren) 1,585.48 462.20 1,123.28 1,085.25 462.20 623.05
Retiree + Family 2,373.93 462.20 1,911.73 1,778.37 462.20 1,316.17
Rate SubsidyParticipant
PremiumRate Subsidy
Participant
Premium
Retiree only 899.16 635.53 263.63 733.17 635.53 97.64
Retiree + Spouse/DP 1,688.44 635.53 1,052.91 1,426.29 635.53 790.76
Retiree + Child(ren) 1,585.48 635.53 949.95 1,085.25 635.53 449.72 Retiree + Family 2,373.93 635.53 1,738.40 1,778.37 635.53 1,142.84
Rate SubsidyParticipant
PremiumRate Subsidy
Participant
Premium
Retiree only 543.91 348.10 195.81 703.23 344.58 358.65
Retiree + Spouse/DP 977.98 539.09 438.89 1,366.41 536.90 829.51
Retiree + Child(ren) 711.84 421.99 289.85 1,009.99 433.54 576.45
Retiree + Family 1,150.57 615.03 535.54 1,673.17 625.87 1,047.30
Rate SubsidyParticipant
PremiumRate Subsidy
Participant
Premium
Retiree only 543.91 521.43 22.48 703.23 517.91 185.32
Retiree + Spouse/DP 977.98 712.42 265.56 1,366.41 710.23 656.18
Retiree + Child(ren) 711.84 595.32 116.52 1,009.99 606.87 403.12 Retiree + Family 1,150.57 788.36 362.21 1,673.17 799.20 873.97
Retiree only
Retiree + Spouse/DP
Retiree + Child(ren)
Retiree + Family
Retiree only
Retiree + Spouse/DP
Retiree + Child(ren)Retiree + Family
Non-State Retirees
Non-Medicare (20 Years of
Service)
Statewide PPO Statewide HMO
PPO Consumer Driven High Deductible Health
PlanHometown Health Plan & Health Plan of Nevada
Non-State Retirees
Non-Medicare (15 Years of
Service)
Statewide PPO Statewide HMO
PPO Consumer Driven High Deductible Health
PlanHometown Health Plan & Health Plan of Nevada
State Retirees
Non-Medicare (20 Years of
Service)
Statewide PPO Statewide HMO
PPO Consumer Driven High Deductible Health
PlanHometown Health Plan & Health Plan of Nevada
State Retirees
Non-Medicare (15 Years of
Service)
Statewide PPO Statewide HMO
PPO Consumer Driven High Deductible Health
PlanHometown Health Plan & Health Plan of Nevada
Retirees
Non-Medicare (20 Years of
Service) State Less/(More)
than Non-State
Statewide PPO Statewide HMO
PPO Consumer Driven High Deductible Health
PlanHometown Health Plan & Health Plan of Nevada
Retirees
Non-Medicare (15 Years of
Service) State Less/(More)
than Non-State
Statewide PPO Statewide HMO
PPO Consumer Driven High Deductible Health
PlanHometown Health Plan & Health Plan of Nevada
1,376.19
(87.68)
134.58
46.60
268.87
Difference Difference
241.15
787.35
833.43
Difference
(87.68)
134.58
46.60
268.87
241.15
787.35
833.43
1,376.19
Difference
RATES WITH PROPOSED REGUALTIONS METHODOLOGY
Rate SubsidyParticipant
PremiumRate Subsidy
Participant
Premium
Retiree only 899.16 575.46 323.70 733.17 359.25 373.92
Retiree + Spouse/DP 1,688.44 922.74 765.70 1,426.29 560.26 866.03
Retiree + Child(ren) 1,585.48 877.44 708.04 1,085.25 461.36 623.89
Retiree + Family 2,373.93 1,224.36 1,149.57 1,778.37 662.36 1,116.01
Rate SubsidyParticipant
PremiumRate Subsidy
Participant
Premium
Retiree only 899.16 748.79 150.37 733.17 532.58 200.59
Retiree + Spouse/DP 1,688.44 1,269.40 419.04 1,426.29 733.59 692.70
Retiree + Child(ren) 1,585.48 1,224.10 361.38 1,085.25 634.69 450.56 Retiree + Family 2,373.93 1,571.02 802.91 1,778.37 835.69 942.68
Rate SubsidyParticipant
PremiumRate Subsidy
Participant
Premium
Retiree only 543.91 348.10 195.81 703.23 344.58 358.65
Retiree + Spouse/DP 977.98 539.09 438.89 1,366.41 536.90 829.51
Retiree + Child(ren) 711.84 421.99 289.85 1,009.99 433.54 576.45
Retiree + Family 1,150.57 615.03 535.54 1,673.17 625.87 1,047.30
Rate SubsidyParticipant
PremiumRate Subsidy
Participant
Premium
Retiree only 543.91 521.43 22.48 703.23 517.91 185.32
Retiree + Spouse/DP 977.98 712.42 265.56 1,366.41 710.23 656.18
Retiree + Child(ren) 711.84 595.32 116.52 1,009.99 606.87 403.12 Retiree + Family 1,150.57 788.36 362.21 1,673.17 799.20 873.97
Retiree only
Retiree + Spouse/DP
Retiree + Child(ren)
Retiree + Family
Retiree only
Retiree + Spouse/DP
Retiree + Child(ren)Retiree + Family
Statewide HMO
Non-State Retirees
Non-Medicare (15 Years of
Service)
Statewide PPO Statewide HMO
State Retirees
Non-Medicare (15 Years of
Service)
Statewide PPO
PPO Consumer Driven High Deductible Health
Plan
Hometown Health Plan & Health Plan of
Nevada
PPO Consumer Driven High Deductible Health
Plan
Hometown Health Plan & Health Plan of
Nevada
PPO Consumer Driven High Deductible Health
Plan
418.19 47.44
Retirees
Non-Medicare (15 Years of
Service) State Less/(More)
than Non-State
Statewide PPO Statewide HMO
Hometown Health Plan & Health Plan of
Nevada
Difference Difference
127.89 15.27
326.81 36.52
614.03 68.71
Non-State Retirees
Non-Medicare (20 Years of
Service)
Statewide PPO Statewide HMO
State Retirees
Non-Medicare (20 Years of
Service)
Statewide PPO Statewide HMO
Retirees
Non-Medicare (20 Years of
Service) State Less/(More)
than Non-State
Statewide PPO Statewide HMO
PPO Consumer Driven High Deductible Health
Plan
Hometown Health Plan & Health Plan of
Nevada
PPO Consumer Driven High Deductible Health
Plan
Hometown Health Plan & Health Plan of
Nevada
PPO Consumer Driven High Deductible Health
Plan
Hometown Health Plan & Health Plan of
Nevada
Difference Difference
127.89 15.27
153.48 36.52
244.86 47.44
440.70 68.71
Retiree only
Retiree + Spouse/DP
Retiree + Child(ren)
Retiree + Family
Retiree only
Retiree + Spouse/DP
Retiree + Child(ren)Retiree + Family
Non-State Retirees
Non-Medicare (15 Years of
Service) Difference from
Existing Method to Proposed
Method
Statewide PPO Statewide HMO
PPO Consumer Driven High Deductible Health
Plan
Hometown Health Plan & Health Plan of
Nevada
Difference
(415.24) 0.84
Difference
(113.26) 102.95
(460.54) (98.06)
(762.16) (200.16)
Non-State Retirees
Non-Medicare (20 Years of
Service) Difference from
Existing Method to Proposed
Method
Statewide PPO Statewide HMO
PPO Consumer Driven High Deductible Health
Plan
Hometown Health Plan & Health Plan of
Nevada
Difference Difference
(935.49) (200.16)
(113.26) 102.95
(633.87) (98.06)
(588.57) 0.84