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First Substitute H.B. 437

Representative Bradley M. Daw proposes the following substitute bill:




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 and may be changed by the Legislature at any time;
             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 minimum annual employer contribution amounts and payout provisions
             21      for the 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 the exhausted Federal COBRA
             24      insurance; 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:
             44          (a) do not constitute a continuing obligation of the state, its political subdivisions, or
             45      educational institutions; and
             46          (b) may be changed by the Legislature at any time.
             47          Section 2. Section 49-20-410 is amended to read:
             48           49-20-410. High deductible health plan -- Health savings account --
             49      Contributions.
             50          (1) (a) In addition to other employee benefit plans offered under Subsection
             51      49-20-201 (1), the office shall offer at least one federally qualified high deductible health plan
             52      with a health savings account as an optional health plan.
             53          (b) The provisions and limitations of the plan shall be:
             54          (i) determined by the office in accordance with federal requirements and limitations;
             55      and
             56          (ii) designed to promote appropriate health care utilization by consumers, including

             57      preventive health care services.
             58          (c) A state employee hired on or after July 1, 2011, who is offered a plan under
             59      Subsection 49-20-202(1)(a), shall be enrolled in a federally qualified high deductible health
             60      plan unless the employee chooses a different health benefit plan during the employee's open
             61      enrollment period.
             62          (2) The office shall:
             63          (a) administer the high deductible health plan in coordination with a health savings
             64      account for medical expenses for each covered individual in the high deductible health plan;
             65      and
             66          (b) offer to all employees training regarding health plans offered to employees,
             67      including, if offered, high deductible health plans and health savings accounts; [and]
             68          (c) prepare online training as an option for the training required by Subsections (2)(b)
             69      and (4)[.]; and
             70          (d) ensure the training offered under Subsections (2)(b) and (c) shall include
             71      information on changing coverages to the high deductible plan with a health savings account,
             72      including coordination of benefits with other insurances, restrictions on other insurance
             73      coverages, and general tax implications.
             74          (e) coordinate annual open enrollment with the Department of Human Resource
             75      Management to give state employees the opportunity to affirmatively select preferences from
             76      among insurance coverage options.
             77          (3) (a) Contributions to the health savings account may be made by the employer.
             78          (b) The amount of the employer contributions under Subsection (3)(a) shall be
             79      determined annually by the office, after consultation with the Department of Human Resource
             80      Management and the Governor's Office of Planning and Budget[.] but the annual employer
             81      contribution amount may not be less than $750 for single coverage and $1500 for double or
             82      family coverage.
             83          (c) The office shall distribute the annual amount determined under Subsection (3)(b) to
             84      employees in two equal amounts with the first pay date in January and the first pay date in July
             85      of each plan year.
             86          [(c)] (d) An employee may also make contributions to the health savings account.
             87          (4) The program shall offer a state employee and the employee's eligible dependents

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

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