(a) The board of trustees by rule shall establish group coverage plans for individuals eligible to participate in the group benefits program.
(b) The group coverage plans may, in the board of trustees’ discretion, include:
(1) life coverage;
(2) accidental death and dismemberment coverage;
(3) health benefit coverage, including coverage for:
(A) hospital care and benefits;
(B) surgical care and treatment;
(C) medical care and treatment;
(D) dental care;
(E) obstetrical benefits;
(F) prescribed drugs, medicines, and prosthetic devices; and
(G) supplemental benefits, supplies, and services in accordance with this chapter;
(4) coverage providing protection against either long-term or short-term loss of salary; and
(5) any other group coverage that the board of trustees, in consultation with the advisory committee, considers advisable.

(c) The group coverage plans for annuitants may, at the discretion of the board of trustees, be separate or a part of the group coverage plans for employees. If the trustee establishes separate group coverage plans for annuitants, the separate group coverage plans must include both full benefits and supplemental coverage options.