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H.B. 437 Enrolled





Chief Sponsor: Bradley M. Daw

Senate Sponsor: Curtis S. Bramble

             7      LONG TITLE
             8      General Description:
             9          This bill modifies the Utah State Retirement and Insurance Benefit Act by amending
             10      high deductible health plan insurance program provisions.
             11      Highlighted Provisions:
             12          This bill:
             13          .    clarifies that health insurance benefits provided to employees do not constitute a
             14      continuing obligation;
             15          .    requires the Public Employee Health Plan to provide training on changing coverages
             16      to the high deductible plan with a health savings account, including coordination of
             17      benefits with other insurances;
             18          .    requires PEHP to coordinate annual open enrollment with the Department of
             19      Human Resource Management;
             20          .    establishes procedures for calculating annual employer contribution amounts for the
             21      employer paid health savings account contributions;
             22          .    requires the state to offer continuing high deductible health plan coverage under
             23      certain circumstances after the employee has exhausted Federal COBRA coverage;
             24      and
             25          .    makes technical changes.
             26      Money Appropriated in this Bill:
             27          None
             28      Other Special Clauses:
             29          None

             30      Utah Code Sections Affected:
             31      AMENDS:
             32          49-20-105, as renumbered and amended by Laws of Utah 2002, Chapter 250
             33          49-20-410, as last amended by Laws of Utah 2011, Chapter 148
             35      Be it enacted by the Legislature of the state of Utah:
             36          Section 1. Section 49-20-105 is amended to read:
             37           49-20-105. Purpose -- Benefits are not a continuing obligation.
             38          (1) The purpose of this chapter is to provide a mechanism for covered employers to
             39      provide covered individuals with group health, dental, medical, disability, life insurance,
             40      medicare supplement, conversion coverage, cafeteria, flex plan, and other programs requested
             41      by the state, its political subdivisions, or educational institutions in the most efficient and
             42      economical manner.
             43          (2) The benefits provided to a covered individual under this chapter do not constitute a
             44      continuing obligation of the state, its political subdivisions, or educational institutions.
             45          Section 2. Section 49-20-410 is amended to read:
             46           49-20-410. High deductible health plan -- Health savings account --
             47      Contributions.
             48          (1) (a) In addition to other employee benefit plans offered under Subsection
             49      49-20-201 (1), the office shall offer at least one federally qualified high deductible health plan
             50      with a health savings account as an optional health plan.
             51          (b) The provisions and limitations of the plan shall be:
             52          (i) determined by the office in accordance with federal requirements and limitations;
             53      and
             54          (ii) designed to promote appropriate health care utilization by consumers, including
             55      preventive health care services.
             56          (c) A state employee hired on or after July 1, 2011, who is offered a plan under
             57      Subsection 49-20-202(1)(a), shall be enrolled in a federally qualified high deductible health

             58      plan unless the employee chooses a different health benefit plan during the employee's open
             59      enrollment period.
             60          (2) The office shall:
             61          (a) administer the high deductible health plan in coordination with a health savings
             62      account for medical expenses for each covered individual in the high deductible health plan;
             63      [and]
             64          (b) offer to all employees training regarding all health plans offered to employees[,
             65      including, if offered, high deductible health plans and health savings accounts]; [and]
             66          (c) prepare online training as an option for the training required by Subsections (2)(b)
             67      and (4)[.];
             68          (d) ensure the training offered under Subsections (2)(b) and (c) includes information on
             69      changing coverages to the high deductible plan with a health savings account, including
             70      coordination of benefits with other insurances, restrictions on other insurance coverages, and
             71      general tax implications; and
             72          (e) coordinate annual open enrollment with the Department of Human Resource
             73      Management to give state employees the opportunity to affirmatively select preferences from
             74      among insurance coverage options.
             75          (3) (a) Contributions to the health savings account may be made by the employer.
             76          (b) The amount of the employer contributions under Subsection (3)(a) shall be
             77      determined annually by the office, after consultation with the Department of Human Resource
             78      Management and the Governor's Office of Planning and Budget[.] so that the annual employer
             79      contribution amount reflects the difference in the actuarial value between the program's health
             80      maintenance organization coverage and the federally qualified high deductible health plan
             81      coverage, after taking into account any difference in employee premium contribution.
             82          (c) The office shall distribute the annual amount determined under Subsection (3)(b) to
             83      employees in two equal amounts with a pay date in January and a pay date in July of each plan
             84      year.
             85          [(c)] (d) An employee may also make contributions to the health savings account.

             86          (4) The program shall offer a state employee and the employee's eligible dependents
             87      the option to continue coverage under the employee's high deductible health plan in place of a
             88      conversion policy under Section 31A-22-723 if:
             89          (a) the employee was covered by the state employee's high deductible health plan for at
             90      least the four years before the date of termination of employment;
             91          (b) the employee or the employee's eligible dependents have exhausted federal
             92      COBRA coverage with the same or similar state employee's high deductible health plan; and
             93          (c) the employee pays the premium group rate determined by the office for the
             94      coverage.
             95          [(4)] (5) (a) An employer participating in a plan offered under Subsection
             96      49-20-202 (1)(a) shall require each employee to complete training on the health plan options
             97      available to the employee.
             98          (b) The training required by Subsection [(4)] (5)(a):
             99          (i) shall include materials prepared by the office under Subsection (2);
             100          [(i)] (ii) may be completed online; and
             101          [(ii)] (iii) shall be completed:
             102          (A) before the end of the [2011] 2012 open enrollment period for current enrollees in
             103      the program; and
             104          (B) for employees hired on or after July 1, 2011, [prior to] before the employee's
             105      selection of a plan in the program.

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