Chap. 0516 An Act to provide a system of general accident, hospitalization, medical and surgical insurance for state employees.
Be it enacted, etc., as follows:
Chapter 176A of the General Laws is hereby amended by inserting after section 27, as appearing in section 1 of chapter 766 of the acts of 1950, the following section: - Section 27A. There shall be established within the commission on administration and finance, but not under its jurisdiction, a special unpaid commission consisting of the commissioner of administration, the commissioner of insurance, and a state employee to be named by the governor. Said special commission is hereby authorized to negotiate each year with insurance companies or non-profit hospital and medical service corporations and carry into effect a system of prepaid general or blanket accident, hospitalization, medical and surgical insurance for the protection of the officers and employees of the commonwealth and their dependents.
All negotiations shall be completed not later than June first of each year and shall become effective for the succeeding state fiscal year. The special commission is further authorized to purchase the most beneficial general or blanket accident, hospitalization, medical and surgical insurance on behalf of those officers and employees of the commonwealth as shall elect to be so insured. The premiums for such insurance as may be elected by the officers and employees of the commonwealth shall with their consent be deducted from their salary or wages.
Any dividends which may accrue from such insurance shall be applied to reduce the cost of coverage for the succeeding year. Approved July 17, 1951.