8-27-701 - Supplemental insurance provided by state insurance committee Participation by teachers Returns or refunds.
8-27-701. Supplemental insurance provided by state insurance committee Participation by teachers Returns or refunds.
(a) The state insurance committee, in cooperation with the local education and local government insurance committees, shall provide such supplemental medical insurance as the committee deems necessary and reasonable for retired state employees and teachers who are covered by Medicare benefits. The committee may also establish provisions for participation in Medicare health maintenance organizations certified by the health care financing administration for such retirees and may establish such optional coverages as it deems necessary and reasonable.
(b) If, pursuant to any contract for insurance coverage authorized by this section, the provider or administrator returns or refunds any amounts by which premiums or fees exceed expenses, such amounts shall be used only for the supplemental medical insurance program for retirees, and in no instance shall the returns or refunds be used to reduce the amount of state funding which would otherwise be required under the provisions of § 8-27-702(b).
[Acts 1988, ch. 986, § 1; 1992, ch. 955, § 1; 1997, ch. 513, § 7.]