Second Substitute H.B. 105

Representative Rebecca D. Lockhart proposes the following substitute bill:

1 HEALTH INSURANCE MANDATES PROGRAM
2 2002 GENERAL SESSION
3 STATE OF UTAH
4 Sponsor: Rebecca D. Lockhart
5 This act relates to Health Insurance. The act modifies the Insurance Code and the Utah
6 State Retirement Act to require health coverage offered to the state employees' risk pool to
7 adopt health insurance mandates proposed for other accident and health insurance plans.
8 The act takes effect on July 1, 2002. The act provides a coordination clause.
9 This act affects sections of Utah Code Annotated 1953 as follows:
10 ENACTS:
11 31A-22-605.5, Utah Code Annotated 1953
12 49-8-406, Utah Code Annotated 1953
13 Be it enacted by the Legislature of the state of Utah:
14 Section 1. Section 31A-22-605.5 is enacted to read:
15 31A-22-605.5. Application.
16 (1) For purposes of this section "insurance mandate" S :(a) s means a mandatory obligation with
17 respect to coverage, benefits, or the number or types S OF s providers imposed on policies of
17a accident and
18 health insurance S ; AND
18a (b) DOES NOT MEAN AN ADMINISTRATIVE RULE IMPOSING A MANDATORY OBLIGATION
18b WITH RESPECT TO COVERAGE, BENEFITS, OR PROVIDERS UNLESS THAT MANDATORY
18c OBLIGATION WAS SPECIFICALLY IMPOSED ON POLICIES OF ACCIDENT AND HEALTH INSURANCE
18d BY STATUTE s .
19 (2) (a) Notwithstanding the provisions of Subsection 31A-1-103 (3)(f), any law imposed
20 under this title that becomes effective after January 1, 2002, which provides for an insurance
21 mandate for policies of accident and health insurance shall also apply to health coverage offered
22 to the state employees' risk pool under Section 49-8-201 .
23 (b) If health coverage offered to the state employees' risk pool under Section 49-8-201
24 offers coverage in the same manner and to the same extent as the coverage required by the
25 insurance mandate imposed under this title or coverage that is greater than the insurance mandate

26 imposed under this title, the coverage offered to state employees under Section 49-8-201 will be
27 considered in compliance with the insurance mandate.
28 (c) The program regulated under Section 49-8-201 shall report to the Quasi-Governmental
29 Entities Interim Committee by November 30 of each year in which a mandate is imposed under
30 the provisions of this section. The report shall include the costs and benefits of the particular
31 mandatory obligation.
32 Section 2. Section 49-8-406 is enacted to read:
33 49-8-406. Insurance mandates.
34 Notwithstanding the provisions of Subsection 31A-1-103 (3)(f), health coverage offered to
35 the state employee risk pool under Section 49-8-201 shall comply with the provisions of Section
36 31A-22-605.5 .
37 Section 3. Effective date.
38 This act takes effect on July 1, 2002.
39 Section 4. Coordination clause.
40 If this bill and H.B. 250, Retirement Law Recodification, both pass, it is the intent of the
41 Legislature that:
42 (1) the provisions of the coordination clause in this bill supersede the provisions of the
43 coordination clause in H.B. 250 with respect to this bill; and
44 (2) the Office of Legislative Research and General Counsel shall make the following
45 changes in preparing the database for publication:
46 (a) references in H.B. 105 to "Section 49-8-201 " shall be changed to "Subsection
47 49-20-202 (1)(a)"; and
48 (b) Section " 49-8-406 " in this bill be renumbered to " 49-20-407 ".