H.B. 485

1

LEGISLATORS HEALTH PLAN
2 2008 GENERAL SESSION
3 STATE OF UTAH
4 Chief Sponsor: Eric K. Hutchings
5 Senate Sponsor: ____________
6
7 LONG TITLE
8 General Description:
9 This bill modifies the Public Employees' Benefit and Insurance Program Act by
10 amending health benefits offered to governors and legislators.
11 Highlighted Provisions:
12 This bill:
13 . requires that a health reimbursement arrangement benefit is the health benefit
14 offered to new governors and legislators after July 1, 2008;
15 . allows existing legislators and the current governor to have the option to chose a
16 health reimbursement arrangement benefit;
17 . requires the Public Employees Health Program to offer a federally qualified health
18 reimbursement arrangement benefit for governors and legislators;
19 . provides that contributions to the health reimbursement arrangement benefit shall be
20 made by the state; and
21 . makes technical changes.
22 Monies Appropriated in this Bill:
23 None
24 Other Special Clauses:
25 This bill takes effect on July 1, 2008.
26 Utah Code Sections Affected:
27 AMENDS:

28 49-20-404, as renumbered and amended by Laws of Utah 2002, Chapter 250
29 ENACTS:
30 49-20-411, Utah Code Annotated 1953
31
32 Be it enacted by the Legislature of the state of Utah:
33 Section 1. Section 49-20-404 is amended to read:
34 49-20-404. Governors' and legislative benefit -- Post-retirement health insurance.
35 (1) The state shall pay the percentage described in Subsection (3) of the cost of
36 providing paid-up group health coverage policy for members and their surviving spouses
37 covered under Chapter 19, Utah Governors' and Legislators' Retirement Act who:
38 (a) were covered under the Utah Governors' and Legislators' Retirement Plan prior to
39 July 1, 2008;
40 [(a)] (b) retire after January 1, 1998;
41 [(b)] (c) are at least 62 but less than 65 years of age;
42 [(c)] (d) elect to receive and apply for this benefit to the program; and
43 [(d)] (e) are active members at the time of retirement or have retired and continued
44 coverage with the program until the date of eligibility for the benefit under this Subsection (1).
45 (2) The state shall pay the percentage described in Subsection (3) of the cost of
46 providing Medicare supplemental coverage for members and their surviving spouses covered
47 under Chapter 19, Utah Governors' and Legislators' Retirement Act who:
48 (a) were covered under the Utah Governors' and Legislators' Retirement Plan prior to
49 July 1, 2008;
50 [(a)] (b) retire after January 1, 1998;
51 [(b)] (c) are at least 65 years of age; and
52 [(c)] (d) elect to receive and apply for this benefit to the program.
53 (3) The following percentages apply to the benefit described in Subsections (1) and (2):
54 (a) 100% if the member has accrued 10 or more years of service credit;
55 (b) 80% if the member has accrued 8 or more years of service credit;
56 (c) 60% if the member has accrued 6 or more years of service credit; and
57 (d) 40% if the member has accrued 4 or more years of service credit.
58 (4) In lieu of the benefit provided under Subsections (1) and (2), the state shall pay an

59 amount equal to the cost of providing the benefit for each member qualified under Subsections
60 (1)(b) through (e) or Subsections (2)(b) through (d) into a health reimbursement account under
61 Section 49-20-411 :
62 (a) as the post-retirement health benefit available to governors and legislators who
63 initially enter office on or after July 1, 2008; and
64 (b) as an alterative post-retirement health benefit under this section available to
65 governors and legislators who were in office prior to July 1, 2008.
66 Section 2. Section 49-20-411 is enacted to read:
67 49-20-411. Governor's and Legislative Health Reimbursement Arrangement
68 benefit -- Contributions -- Vesting.
69 (1) (a) In addition to other employee benefit plans offered under this part, the office
70 shall offer a federally qualified health reimbursement arrangement:
71 (i) as the health benefit available to governors and legislators who initially enter office
72 on or after July 1, 2008; and
73 (ii) as an optional health benefit available only to governors and legislators who were
74 in office prior to July 1, 2008.
75 (b) The provisions and limitations of the health reimbursement arrangement shall be
76 determined by the office in accordance with federal requirements and limitations.
77 (2) The office shall set the amount of the contribution to the health reimbursement
78 arrangement so that the cost paid by the state for the benefit is actuarially neutral with the plan
79 with the highest enrollment of state employees that is paid by the state to its employees based
80 on federal requirements limitations.
81 (3) Contributions to the health reimbursement arrangement shall be made by the state.
82 (4) The contributions shall vest immediately to the account or the number.
83 Section 3. Effective date.
84 This bill takes effect on July 1, 2008.




Legislative Review Note
as of 2-14-08 2:01 PM

Office of Legislative Research and General Counsel