BILL ANALYSIS
Senate Appropriations Committee Fiscal Summary
Senator Tom Torlakson, Chairman
235 (Negrete McLeod)
Hearing Date: 5/7/07 Amended: As Introduced
& as proposed to be amended
Consultant: Maureen Ortiz Policy Vote: P. E. & R. 4-1
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BILL SUMMARY: SB 235 authorizes annuitants of the California
State University system to participate in the Vision Care
Program for State Annuitants, which is administered by the
Department of Personnel Administration (DPA).
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Fiscal Impact (in thousands)
Major Provisions 2007-08 2008-09 2009-10 Fund
Vision care for CSU -------costs offset by member
fees------- Special*
Admin costs -------potentially up to
$75----------- Special
*Vision Care Program for State Annuitants Fund
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STAFF COMMENTS:
The full costs of the program are paid by participating
annuitants, however, DPA may need an additional PY for
administrative purposes. The current program authorizes DPA to
deduct the monthly premiums from each participating annuitants'
benefit check. SB 235 will add annuitants of the California
State University system to the list of eligible participants in
this program. It is estimated that there are currently 30,000
retired members of the CSU System. Annuitants of the University
of California system are specifically excluded.
The author will present amendments to transfer the
administration of the CSU annuitant vision care benefit from the
Department of Personnel Administration to the CSU. CSU has
indicated a concern about funding the start-up administrative
expenses expected to be $75,000.
The newly created Vision Care Program for State Annuitants is in
the process of an "open enrollment" period and to date, over
30,000 retirees have enrolled. The carrier is Vision Service
Plan, and rates are estimated at $8.78 per month per single
participant, $17.12 per month for a two party, and $18.43 per
month for a party of 3 or more.
Under the provisions of The Vision Care Program for State
Annuitants, the vision care benefit for participating annuitants
must be comparable to the vision care benefits provided to them
as active employees. Because CSU currently provides vision care
benefits for their active employees, and DPA administers the
Vision Care Program for
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SB 235 (Negrete McLeod)
State Annuitants, this bill will require a coordinating effort
between CSU and DPA to avoid inequitable coverage between active
and retired CSU members. In addition, the
CSU program for active employees currently offers a higher level
of benefits than the plan offered by the state.
AB 2242 (Torrico), Chapter 611 of 2006, enacted the Vision Care
Program for State Annuitants for state personnel who were
enrolled in a vision care plan at the time he or she became an
annuitant. Eligible participants are 1) civil service
employees,
2) members of the Legislature (who belong to LRS), 3)
legislative employees,
4) constitutional officers, and 5) employees of the judicial
branch.
Currently, CSU annuitants are only able to receive vision care
coverage through their HMO or PPO plan. The HMO plans only
offer routine eye examinations and basic care, and do not
include eyeglasses and contact lens coverage. Only the
self-funded PPO plans offer vision care benefits to annuitants
that include eye examinations, eyeglass coverage and contact
lens coverage.