Arkansas § 6-17-1117 - Health insurance — Definition.

§ 6-17-1117. Health insurance — Definition.

Beginning on January 1, 2014, a school district shall pay the health insurance contribution rate of one hundred fifty dollars ($150) per month for each eligible employee electing to participate in the public school employees' health insurance program. The minimum contribution rate under subdivision (a)(1) of this section shall increase annually by the same percentage that the legislature increases the per-student foundation funding amount under § 6-20-2305. Unless exempt under subdivision (a)(5) of this section, the local contribution rate of a school district shall also increase by the same percentage that a school district increases the base salary for licensed personnel under the licensed salary schedule adopted by the school district. As used in this section, “local contribution rate” means the minimum rate required under subdivision (a)(1) of this section in addition to the contribution amount a school district provides for health insurance above that minimum contribution rate. A change to the local contribution rate under subdivision (a)(3) of this section is effective for the plan year after the change to the licensed salary schedule is adopted by a school district. A school district is not required to increase the local contribution rate as directed under subdivision (a)(3) of this section if the school district: Is required to raise the base salary of licensed personnel due to an increase in the minimum teacher compensation schedule under § 6-17-2403; Has a participation rate of seventy-five percent (75%) or more of all eligible personnel participating in the public school employees' health insurance program; or Has a local contribution rate of one hundred twenty-five percent (125%) or more of the minimum contribution rate required under this subsection. The Division of Elementary and Secondary Education shall pay the Employee Benefits Division a minimum of sixty-one dollars ($61.00) per month for each eligible employee electing to participate in the public school employees' health insurance program administered by the State and Public School Life and Health Insurance Board. The Division of Elementary and Secondary Education shall make the total contributions under subdivision (b)(1)(A) of this section by transferring fifty-five million dollars ($55,000,000) to the Employee Benefits Division in twelve (12) equal monthly installments. The funds provided to the Employee Benefits Division under this subsection shall be administered by the board for the benefit of the employee participants of the public school employees' health insurance program. In the event that appropriation or funding is not provided, the Division of Elementary and Secondary Education shall not be responsible for the increased payments for the public school employees' health insurance program as established by this section. If funding and appropriation are provided but are inadequate for the total number of employees electing to participate in the public school employees' health insurance program, the Division of Elementary and Secondary Education shall pay a proportional share on behalf of each participant. If funding and appropriation are provided and exceed the amount needed to make the minimum contribution under subdivision (b)(1)(A) of this section, the Division of Elementary and Secondary Education shall pay a proportional share of the excess on behalf of each participant. A school district shall: Provide the same employer-provided health insurance benefits for all full-time school district employees; and Pay the same employer contribution rate for each eligible employee electing to participate in the public school employees' health insurance program. If a school district entered into a contract with a superintendent, teacher, or other employee before April 11, 2006, and the contract provides for a higher employer contribution rate than is paid for a majority of the licensed personnel in the school district, then the school district may continue to pay the higher contribution rate as provided under the existing contract but not under extensions, addendums, or new contracts created after April 11, 2006, without increasing all other employees to the same rate. Any school district that entered into contracts with classified personnel before July 31, 2007, and the contracts provided for a higher employer contribution funding amount than is paid for licensed personnel in the school district shall freeze the employer contribution funding amount for classified employees until such time as the funding amount contributed for licensed personnel equals or exceeds the funding amount provided for classified employees.