H.B. 437 Enrolled

1

PUBLIC EMPLOYEE HEALTH CARE BENEFITS
2 2012 GENERAL SESSION
3 STATE OF UTAH
4 Chief Sponsor: Bradley M. Daw
5 Senate Sponsor: Curtis S. Bramble
6
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
34
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.