H 7330Health Insurance

Public Officers and Employees - Insurance Benefits

Allows certain government-funded private healthcare and support workers to purchase health insurance through the state employee benefits plan.

Held for study

Population
Affected

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Introduced Jan 28, 2026Committee House Corporations

Plain-English Summary

This legislation expands eligibility for the state of Rhode Island's health insurance plan. It allows private employees working at nursing homes, home care providers, and developmental disability service providers to join the state's plan, provided that 90% of their salary is funded by state or federal money. It also includes employees who have developmental disabilities themselves. While the employees are responsible for paying the insurance premiums through payroll deductions, their private employers have the option to contribute toward these costs.

For younger readers

This bill helps people who have jobs taking care of others get health insurance. It specifically helps workers in nursing homes or those who help people with disabilities. To be allowed to join, the money for their paycheck must come mostly from the government. These workers would be able to join the same health insurance plan that people who work for the state government use. The workers would have to pay for the insurance out of their own paychecks, but their bosses are allowed to help pay for it if they want to.

Who & Where It Applies

Impacted groups

Nursing home employeesDevelopmental disability service providersHome care providersEmployees with developmental disabilitiesPrivate healthcare employers

Impacted communities

All

Constitutional & Fiscal Check

None Likely

Estimated cost

None

Estimated revenue

Amount unknown

Bill Analysis

Both viewpoints

For Progressives

Expands access to quality, state-negotiated healthcare coverage for essential care workers and those with disabilities who might otherwise struggle to find affordable private insurance.
Strengthens the social safety net by supporting the stability of the care economy, potentially reducing turnover among developmental disability and home care providers.
Leverages the purchasing power of the state to assist low-wage workers whose incomes are already derived primarily from public funds, ensuring those funds support healthier lives.
Does not mandate employer contributions, meaning low-wage workers may still find the full premium costs too expensive to afford even with access to the plan.
The requirement that salaries be ninety percent funded by state or federal monies is a restrictive threshold that may exclude many deserving care workers who fall just short of this percentage.
Relies on a buy-in model rather than establishing a universal public option or fully subsidized healthcare, maintaining financial barriers to care for vulnerable populations.

For Conservatives

Protects taxpayers by requiring the private employee to pay the insurance premiums via payroll deduction, ensuring the expansion is not a direct handout.
Maintains the private status of nursing homes and care providers rather than converting these workers into full state employees with pension rights.
Preserves business autonomy by making employer contributions to the premiums optional rather than a government-mandated tax or fee on business owners.
Expands the size and administrative scope of state government by adding private sector employees to government benefit rolls.
Blurs the lines between private enterprise and government employment, potentially setting a precedent for future demands for state benefits for private workers.
Creates potential financial risk for the state insurance pool if a high number of high-risk individuals join, which could eventually drive up costs for existing state employees and taxpayers.

Votes

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Full Bill Text

Changes to existing Rhode Island law · 7 additions

SECTION 1. Section 36-12-7 of the General Laws in Chapter 36-12 entitled "Insurance Benefits" is hereby amended to read as follows: 36-12-7. Eligibility for benefits.

(a) All persons in the service of the state on and after July 1, 1960, whether elected, appointed or employed, and private employees at nursing homes, developmental disability and home care providers and employees with developmental disabilities whose salaries are ninety percent (90%) funded with state or federal monies, who elect to participate in an insurance contract or contracts shall be eligible to participate therein. The director, however, with the consent of the insurance company or companies, may by rule or regulation exclude those classes of temporary, part-time, or intermittent employees for whom insurance contracts shall be deemed to be impracticable.

(b) The director, with the consent of the insurance company or companies, may authorize the inclusion in insurance contracts of employees of public authorities, full-time employees of organizations representing state employees, or other appropriate agencies of the state as may be designated in the rules or regulations of the director, and may prescribe the rate of contribution required from such participating authorities, or other agencies.

(c) Private employees listed in subsection (a) of this section who are eligible to opt into the state healthcare plan shall have the insurance premium deducted from their earnings with the private employer having the option to contribute to pay all or a portion of the premium payment.

SECTION 2. This act shall take effect upon passage.