Section 36-29-6

Execution of contracts with health insurance agencies or corporations for provision of benefits under health insurance plan authorized; awarding of contracts; reinsurance of contracts; certificates to be issued to covered employees; discontinuance, etc., of contracts.

(a) The board is hereby authorized to execute a contract or contracts to provide the benefits under the plan of health insurance coverage determined upon in accordance with the provisions of this chapter. Such contract or contracts may be executed with one or more agencies or corporations licensed to transact group health insurance business in this state. All of the benefits to be provided under this chapter may be included in one or more similar contracts issued by the same or different companies.

(b) Before entering into any contract authorized by subsection (a) of this section, said board shall invite competitive bids from all qualified insurors who may wish to offer plans for the health insurance coverage desired. The board shall award such contract on a competitive basis as determined by the benefits afforded, the costs to be incurred by both employee and employer, the experience of the offering company or agency in the group health insurance field and its facilities for the handling of claims. In evaluating these factors the board may employ the services of impartial professional insurance analysts or actuaries.

(c) The contract executed by the board with the selected carrier shall be a contract to cover all employees of the state subject to the provisions of this chapter; provided, however, that nothing contained in this chapter shall prohibit other insurance carriers from soliciting additional health and other types of insurance coverage with state employees, and nothing contained in this chapter shall prohibit the Director of Finance from authorizing payment of premiums for such additional health and other types of coverage by payroll deduction.

(d) The board may authorize the carrier with whom the primary contract is executed to reinsure portions of such contract with other such carriers which elect to be a reinsurer and who are legally qualified to enter into a reinsurance agreement under the laws of this state.

(e) Each employee who is covered under any such contract or contracts shall receive a certificate setting forth the benefits to which the employee and his dependents are entitled thereunder, to whom such benefits shall be payable, to whom claims shall be submitted and a summary of the provisions of the contract as they affect the employee and his dependents. Such certificate shall be in lieu of the certificate which the carrier or carriers issuing such contract or contracts would otherwise issue.

(f) The board may at the end of any contract period discontinue any contract or contracts it has executed with any carrier and replace same with a contract or contracts with any other carrier or carriers meeting the requirements of this chapter.

(Acts 1965, No. 833, p. 1564, §6.)