1. (a) Coverage of the spouse of an eligible state employee will be reduced to 30 percent under the commissioner's health plan obtained under AS 39.30.090 - 39.30.095, if the spouse is a state employee participating in a plan exempted under 2 AAC 39.900 and

   1. (1) waives coverage; or

   2. (2) selects a health plan option that

      1. (A) reduces coverage for the spouse below 70 percent; or
      2. (B) provides only catastrophic coverage.

2. (b) The coverage of the dependent children of an eligible state employee will be reduced to 30 percent under the commissioner's health plan obtained under AS 39.30.090 - 39.30.095 if the

   1. (1) employee is covered under a plan exempted under 2 AAC 39.900 and selects a health plan option that

      1. (A) does not include coverage for dependent children;
      2. (B) reduces coverage for dependent children below 70 percent; or
      3. (C) provides only catastrophic coverage; and
   2. (2) plan exempted under 2 AAC 39.900 would have been the primary plan under 2 AAC 39.915 for the dependent children, had the employee selected a health plan option other than one listed in (1)(A) - (1)(C) of this subsection.

(Eff. 7/1/2003, Register 166)

Authority: AS 39.30.090, AS 39.30.091