8-27-703 - Direct payments to local education agency.
8-27-703. Direct payments to local education agency.
(a) If, on January 1, 1988, a local education agency as defined in § 49-3-302 made supplemental medical insurance benefits available to its retirees who are covered by medicare benefits, and the benefits of such plan are equal or superior to the plan offered to retirees pursuant to § 8-27-701, the local education agency shall be eligible to receive directly the payments provided for in § 8-27-702. Participation in an insurance trust, county-wide plan, self-insurance or similar benefit plan shall not disqualify the local education agency from these payments.
(b) The determination of the equivalency or superiority of the local benefits shall be made by an outside, independent firm or consultant. A written report shall be supplied to the local education agency in the event that local plan is determined not to be equal or superior.
(c) In order to be reviewed for eligibility, a local education agency must make its application to the local education insurance committee within sixty (60) days of July 1, 1988. Local education agencies not making a timely application or having medical benefits that are not equal or superior to the plan offered pursuant to § 8-27-701 shall not be eligible for direct payments.
(d) Any payment made by the state pursuant to this part shall first be used to reduce or eliminate any contribution required of retirees participating in such local plan and shall not result in a reduction of financial support of such plan by the local education agency.
[Acts 1988, ch. 986, § 1.]