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H.B. 76

             1     

HIGH DEDUCTIBLE HEALTH PLAN OPTION

             2     
FOR PUBLIC EMPLOYEES

             3     
2006 GENERAL SESSION

             4     
STATE OF UTAH

             5     
Chief Sponsor: Bradley M. Daw

             6     
Senate Sponsor: Scott K. Jenkins

             7      Cosponsors:Eric K. HutchingsCurtis Oda              8     
             9      LONG TITLE
             10      General Description:
             11          This bill modifies the Public Employees' Benefit and Insurance Program Act by
             12      amending provisions of the health plans offered by the program.
             13      Highlighted Provisions:
             14          This bill:
             15          .    requires the Public Employees' Benefit and Insurance Program (PEHP) to offer a
             16      high deductible health plan with a federally qualified health savings account;
             17          .    prohibits the program from offering the high deductible health plan to any person
             18      who is covered by another health plan unless the other health plan is a similar high
             19      deductible health plan;
             20          .    prohibits the program from allowing an employee to change from the high
             21      deductible health plan to another health plan more frequently than every three years;
             22      and
             23          .    requires the high deductible health plan to include a health savings account for each
             24      covered individual with certain contributions made by the employer and optional
             25      contributions made by the employee.
             26      Monies Appropriated in this Bill:
             27          None


             28      Other Special Clauses:
             29          None
             30      Utah Code Sections Affected:
             31      ENACTS:
             32          49-20-410, Utah Code Annotated 1953
             33     
             34      Be it enacted by the Legislature of the state of Utah:
             35          Section 1. Section 49-20-410 is enacted to read:
             36          49-20-410. High deductible health plan -- Health savings account -- Contributions.
             37          (1) (a) In addition to other employee benefit plans offered under this part, the program
             38      shall offer a high deductible health plan with a federally qualified health savings account as an
             39      optional health plan.
             40          (b) The provisions and limitations of the plan shall be determined by the program in
             41      accordance with federal requirements and limitations.
             42          (2) In accordance with federal requirements and limitations, the program:
             43          (a) may not offer the high deductible health plan to any employee or other person who
             44      is covered by another health plan unless the other health plan is a high deductible health plan
             45      with a federally qualified health saving account;
             46          (b) may not allow an employee to change from the high deductible health plan to
             47      another health plan offered for employees more frequently than every three years; and
             48          (c) shall offer the federally qualified health savings account for medical expenses for
             49      each covered individual in the high deductible health plan.
             50          (3) (a) Contributions to the health savings account shall be made by the employer.
             51          (b) The amount of the contributions under Subsection (3)(a) shall be determined
             52      annually by the program, after consultation with the Department of Human Resource
             53      Management and the Governor's Office of Planning and Budget, based on:
             54          (i) federal requirements and limitations; and
             55          (ii) the actuarial value of the risk-adjusted high deductible to the program.
             56          (c) An employee may also make contributions to the health savings plan.





Legislative Review Note
    as of 11-22-05 1:17 PM


Based on a limited legal review, this legislation has not been determined to have a high
probability of being held unconstitutional.

Office of Legislative Research and General Counsel


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