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H.B. 339





Chief Sponsor: Eric K. Hutchings

Senate Sponsor: ____________

             7      LONG TITLE
             8      General Description:
             9          This bill modifies the Utah State Retirement and Insurance Benefit Act by allowing the
             10      Legislature to use public or private providers to administer benefits plans to its
             11      members.
             12      Highlighted Provisions:
             13          This bill:
             14          .    defines terms;
             15          .    allows, rather than requires, the Legislature to participate in the Public Employee
             16      Health Insurance Program;
             17          .    provides that the Legislature shall determine health care benefit plans for its
             18      members from public or private providers;
             19          .    permits the Legislature to offer the health care benefit plan in the defined
             20      contribution market;
             21          .    sets parameters for participation in the benefit plan; and
             22          .    makes technical changes.
             23      Monies Appropriated in this Bill:
             24          None
             25      Other Special Clauses:
             26          None
             27      Utah Code Sections Affected:

             28      AMENDS:
             29          49-20-201, as last amended by Laws of Utah 2007, Chapter 130
             30      ENACTS:
             31          36-2-6, Utah Code Annotated 1953
             33      Be it enacted by the Legislature of the state of Utah:
             34          Section 1. Section 36-2-6 is enacted to read:
             35          36-2-6. Definitions -- Benefit plans for legislators.
             36          (1) As used in this section:
             37          (a) "Benefit plan" means any group or individual health, dental, medical, disability, life
             38      insurance, Medicare supplement, conversion coverage, cafeteria, flex plan, health
             39      reimbursement arrangements, individual health savings accounts, or other program for covered
             40      individuals offered under this section.
             41          (b) "Covered individual" means a legislator and the legislator's dependents who are
             42      eligible for coverage under a benefit plan offered under this section.
             43          (2) The House of Representatives, Senate, or Legislature shall determine annually, or
             44      as needed:
             45          (a) the extent to which the following health benefit plan features may be incorporated
             46      into the benefit plans offered to legislators and their dependents in compliance with the federal
             47      Health Insurance Portability and Accountability Act, federal ERISA laws, and the Internal
             48      Revenue Code:
             49          (i) individual accountability for behavior and lifestyle choices that effect health status
             50      and costs;
             51          (ii) the ability of a legislator to select and own a personal health benefit plan that is
             52      separate from the employer and is portable; and
             53          (iii) health plan reimbursement features that align the incentives in the health care
             54      system to promote the efficient and effective delivery of health care;
             55          (b) appropriate funding levels for the legislative health benefit plan;
             56          (c) cost sharing features for the health benefit plan that promote effective and efficient
             57      use and selection of a health benefit plan; and
             58          (d) other provisions of the health benefit plans.

             59          (3) On or after January 1, 2012, the House of Representatives, Senate, or Legislature
             60      may provide a covered individual with a choice of benefit plans offered in the defined
             61      contribution market on the Internet portal created by Section 63M-1-2504 .
             62          Section 2. Section 49-20-201 is amended to read:
             63           49-20-201. Program participation -- Eligibility -- Optional for certain groups.
             64          (1) (a) [The] Except as provided under Subsection (5), the state shall participate in the
             65      program on behalf of its employees.
             66          (b) Other employers, including political subdivisions and educational institutions, are
             67      eligible, but are not required, to participate in the program on behalf of their employees.
             68          (2) (a) The Department of Health may participate in the program for the purpose of
             69      providing health and dental benefits to children enrolled in the Utah Children's Health
             70      Insurance Program created in Title 26, Chapter 40, Utah Children's Health Insurance Act, if the
             71      provisions in Subsection 26-40-110 (4) occur.
             72          (b) If the Department of Health participates in the program under the provisions of this
             73      Subsection (2), all insurance risk associated with the Children's Health Insurance Program shall
             74      be the responsibility of the Department of Health and not the program or the office.
             75          (3) A covered individual shall be eligible for coverage after termination of employment
             76      under rules adopted by the board.
             77          (4) Only the following are eligible for Medicare supplement coverage under this
             78      chapter upon becoming eligible for Medicare Part A and Part B coverage:
             79          (a) retirees;
             80          (b) members;
             81          (c) participants;
             82          (d) employees who have medical employee benefit plan coverage at the time of their
             83      retirement; and
             84          (e) current spouses of those who are eligible under Subsections (4)(a) through (d).
             85          (5) The following state entities are not required, but may participate in the program:
             86          (a) the Utah State Senate, for its members, if it elects to use the benefit plan described
             87      in Section 36-2-6 ; and
             88          (b) the Utah House of Representatives, for its members, if it elects to use the benefit
             89      plan described in Section 36-2-6 .

Legislative Review Note
    as of 2-23-09 6:11 PM

Office of Legislative Research and General Counsel

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