H.B. 451

1

PUBLIC EMPLOYEES' BENEFIT AND
2 INSURANCE PROGRAM AMENDMENTS
3 2009 GENERAL SESSION
4 STATE OF UTAH
5 Chief Sponsor: Brad L. Dee
6 Senate Sponsor: Daniel R. Liljenquist
7
8 LONG TITLE
9 General Description:
10 This bill modifies the Public Employees' Benefit and Insurance Program Act by
11 allowing the state to participate in the Public Employees' Health Program only after a
12 competitive bidding or similar process.
13 Highlighted Provisions:
14 This bill:
15 . repeals a requirement that the state participate in the Public Employees' Health
16 Program and instead allows the state to participate if beginning July 1, 2009 an
17 award is made to the program under competitive bidding every two years; and
18 . makes technical changes.
19 Monies Appropriated in this Bill:
20 None
21 Other Special Clauses:
22 None
23 Utah Code Sections Affected:
24 AMENDS:
25 49-20-201, as last amended by Laws of Utah 2007, Chapter 130
26
27 Be it enacted by the Legislature of the state of Utah:

28 Section 1. Section 49-20-201 is amended to read:
29 49-20-201. Program participation -- Eligibility -- Optional for certain groups.
30 (1) (a) (i) The state [shall] may participate in the program on behalf of its employees if
31 beginning July 1, 2009 the participation is preceded by an award or contract made to the
32 program under a competitive bidding process in accordance Title 63G, Chapter 6, Utah
33 Procurement Code.
34 (ii) An award or contract made under Subsection (1)(a)(i) shall provide that the
35 competitive bidding process occur every two years.
36 (b) Other employers, including political subdivisions and educational institutions, are
37 eligible, but are not required, to participate in the program on behalf of their employees.
38 (2) (a) The Department of Health may participate in the program for the purpose of
39 providing health and dental benefits to children enrolled in the Utah Children's Health
40 Insurance Program created in Title 26, Chapter 40, Utah Children's Health Insurance Act, if the
41 provisions in Subsection 26-40-110 (4) occur.
42 (b) If the Department of Health participates in the program under the provisions of this
43 Subsection (2), all insurance risk associated with the Children's Health Insurance Program shall
44 be the responsibility of the Department of Health and not the program or the office.
45 (3) A covered individual shall be eligible for coverage after termination of employment
46 under rules adopted by the board.
47 (4) Only the following are eligible for Medicare supplement coverage under this
48 chapter upon becoming eligible for Medicare Part A and Part B coverage:
49 (a) retirees;
50 (b) members;
51 (c) participants;
52 (d) employees who have medical employee benefit plan coverage at the time of their
53 retirement; and
54 (e) current spouses of those who are eligible under Subsections (4)(a) through (d).

Legislative Review Note
as of 3-9-09 9:10 AM

Office of Legislative Research and General Counsel