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H.B. 451






Chief Sponsor: Brad L. Dee

Senate Sponsor: Daniel R. Liljenquist

             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
             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

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