Responsibility for Costs of Health Plan — Local Government Agency Cooperation With Committee — Effect of Failure to Cooperate

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  1. The costs of the health plan, including plan administration, shall be fully borne by agencies and their members.
  2. Nothing in this part shall require a local government agency to make available to its employees any insurance plan approved by the local government insurance committee.
    1. The local government insurance committee shall provide for the financing of the plan, including the disposition of government grants and subsidies to assist in the funding and provision of health insurance for enrolled individuals.
    2. Local government agencies enrolled in the plan shall cooperate with the local government insurance committee in implementing and complying with the determinations of the local government insurance committee as set forth in subdivision (c)(1). This cooperation includes entering into contracts or memoranda of understanding reflecting the financial determinations of the local government insurance committee.
    3. The local government insurance committee is authorized to take either or both of the following actions in response to a local government agency's failure to cooperate with the local government insurance committee as required by this section:
      1. Assess and collect from the local government agency the costs incurred by the agency's failure to cooperate; and
      2. Terminate the local government agency's participation in the plan.
    4. The termination of the local government agency's participation shall be in effect for two (2) years, and shall be in effect regardless of any language in this chapter to the contrary regarding reinstatement to the plan.
    5. The local government agency shall have the right to request reconsideration of its exclusion before the local government insurance committee. The local government insurance committee's decision of the request for reconsideration shall be final.


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