Chief Sponsor: Michael S. Kennedy

Senate Sponsor: Alvin B. Jackson


9     General Description:
10          This bill amends the Utah State Retirement and Insurance Benefit Act related to high
11     deductible heath insurance plans.
12     Highlighted Provisions:
13          This bill:
14          ▸     provides that an employee who is not eligible for a contribution to a health savings
15     account and is eligible for a contribution for a high deductible plan may receive that
16     contribution in a health reimbursement account or other qualified account the
17     employee is otherwise eligible for.
18     Money Appropriated in this Bill:
19          None
20     Other Special Clauses:
21          None
22     Utah Code Sections Affected:
23     AMENDS:
24          49-20-410, as last amended by Laws of Utah 2013, Chapters 310 and 319

26     Be it enacted by the Legislature of the state of Utah:
27          Section 1. Section 49-20-410 is amended to read:
28          49-20-410. High deductible health plan -- Health savings account --
29     Contributions.

30          (1) (a) In addition to other employee benefit plans offered under Subsection
31     49-20-201(1), the office shall offer at least one federally qualified high deductible health plan
32     with a health savings account as an optional health plan.
33          (b) The provisions and limitations of the plan shall be:
34          (i) determined by the office in accordance with federal requirements and limitations;
35     and
36          (ii) designed to promote appropriate health care utilization by consumers, including
37     preventive health care services.
38          (c) A state employee hired on or after July 1, 2011, who is offered a plan under
39     Subsection 49-20-202(1)(a), shall be enrolled in a federally qualified high deductible health
40     plan unless the employee chooses a different health benefit plan during the employee's open
41     enrollment period.
42          (2) The office shall:
43          (a) administer the high deductible health plan in coordination with a health savings
44     account for medical expenses for each covered individual in the high deductible health plan;
45          (b) offer to all employees training regarding all health plans offered to employees;
46          (c) prepare online training as an option for the training required by Subsections (2)(b)
47     and (4);
48          (d) ensure the training offered under Subsections (2)(b) and (c) includes information on
49     changing coverages to the high deductible plan with a health savings account, including
50     coordination of benefits with other insurances, restrictions on other insurance coverages, and
51     general tax implications; and
52          (e) coordinate annual open enrollment with the Department of Human Resource
53     Management to give state employees the opportunity to affirmatively select preferences from
54     among insurance coverage options.
55          (3) (a) Contributions to the health savings account may be made by the employer.
56          (b) The amount of the employer contributions under Subsection (3)(a) shall be
57     determined annually by the office, after consultation with the Department of Human Resource

58     Management and the Governor's Office of Management and Budget so that the annual
59     employer contribution amount reflects the difference in the actuarial value between the
60     program's health maintenance organization coverage and the federally qualified high deductible
61     health plan coverage, after taking into account any difference in employee premium
62     contribution.
63          (c) The office shall distribute the annual amount determined under Subsection (3)(b) to
64     employees in two equal amounts with a pay date in January and a pay date in July of each plan
65     year.
66          (d) An employee may also make contributions to the health savings account.
67          (e) If an employee is ineligible for a contribution to a health savings account under
68     federal law and would otherwise be eligible for the contribution under Subsection (3)(a), the
69     contribution shall be distributed into a health reimbursement account or other tax-advantaged
70     arrangement authorized under the Internal Revenue Code for the benefit of the employee.
71          (4) (a) An employer participating in a plan offered under Subsection 49-20-202(1)(a)
72     shall require each employee to complete training on the health plan options available to the
73     employee.
74          (b) The training required by Subsection (4)(a):
75          (i) shall include materials prepared by the office under Subsection (2);
76          (ii) may be completed online; and
77          (iii) shall be completed:
78          (A) before the end of the 2012 open enrollment period for current enrollees in the
79     program; and
80          (B) for employees hired on or after July 1, 2011, before the employee's selection of a
81     plan in the program.