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8 LONG TITLE
9 General Description:
10 This resolution directs the Public Employees' Benefit and Insurance Program to modify
11 certain health insurance benefits for state employees.
12 Highlighted Provisions:
13 This resolution:
14 ▸ directs the Public Employees' Benefit and Insurance Program to:
15 • increase the deductible for the STAR HSA Plan;
16 • add an individual out-of-pocket maximum to the STAR HSA Plan for double
17 and family coverage;
18 • increase the total out-of-pocket maximum for the STAR HSA Plan for all levels
19 of coverage;
20 • modify the state's HSA contribution for single coverage on the STAR HSA Plan
21 and for the Consumer Plus Plan; and
22 • adjust the percentage of premium paid by the employee.
23 Special Clauses:
24 None
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26 Be it resolved by the Legislature of the state of Utah, the Governor concurring therein:
27 WHEREAS, in accordance with Utah Code Section 49-20-201, the state participates in
28 the Public Employees' Benefit and Insurance Program;
29 WHEREAS, Utah Code Subsection 49-20-401(1)(g) provides that the program shall
30 "consult with the covered employers to evaluate employee benefit plans and develop
31 recommendations for benefit changes";
32 WHEREAS, Utah Code Subsection 49-20-401(1)(j) provides that the program shall
33 "submit, in advance, the program's recommended benefit and rate changes for state employees,
34 which may include actuarially substantiated member premium differentials between networks,"
35 to the Legislature and the director of the Division of Human Resource Management;
36 WHEREAS, Utah Code Subsection 49-20-401(1)(l) provides that the program
37 "determine benefits and rates based on the total estimated costs and the employee premium
38 share established by the Legislature, upon approval of the board, for state employees";
39 WHEREAS, the deductible for the STAR HSA Plan has to increase to $1,600 for single
40 coverage and $3,200 for double and family coverage in 2024 to be compliant with federal law;
41 WHEREAS, an embedded individual out-of-pocket maximum is currently a benefit
42 feature of the Traditional Plan and the Consumer Plus Plan and adding an embedded individual
43 out-of-pocket maximum to the STAR HSA Plan would make this a standard benefit feature
44 across plans offered;
45 WHEREAS, some families can be four times more likely than others to reach the
46 current out-of-pocket maximum due to the health status of a single member, making the
47 creation of an embedded individual out-of-pocket maximum of particular benefit to these
48 families;
49 WHEREAS, the total combined out-of-pocket maximum for the Traditional Plan is
50 $3,000 for single coverage, $6,000 for double coverage, and $9,000 for family coverage,
51 adopting the same out-of-pocket maximums for the STAR HSA Plan would create a standard
52 benefit feature and result in cost neutrality; and
53 WHEREAS, a material actuarial difference exists between the two networks offered to
54 state employees:
55 NOW, THEREFORE, BE IT RESOLVED that the Legislature of the state of Utah, the
56 Governor concurring therein, direct the Public Employees' Benefit and Insurance Program,
57 beginning with the 2025 plan year, to:
58 (1) increase the deductible for the STAR HSA Plan to $1,600 for single coverage and
59 $3,200 for double and family coverage;
60 (2) add an embedded individual out-of-pocket maximum of $4,000 to the STAR HSA
61 Plan for double and family coverage;
62 (3) increase the total out-of-pocket maximum for the STAR HSA Plan to $3,000 for
63 single coverage, $6,000 for double coverage, and $9,000 for family coverage;
64 (4) add $125 to the state's contribution for single coverage on the STAR HSA Plan;
65 (5) for the Traditional Plan, add 1% of total premium cost to the employee share for the
66 Advantage Network and subtract 2% of total premium cost from the employee share of the
67 Summit Network;
68 (6) for the STAR HSA Plan, add 1% of total premium cost to the employee share for
69 the Advantage Network and eliminate the employee premium share for the Summit Network;
70 and
71 (7) for the Consumer Plus Plan, create an employee share of 1% of total premium cost
72 for the Advantage Network and add the equivalent of 2% of total premium cost to the state's
73 HSA contribution.
74 BE IT FURTHER RESOLVED that a copy of this resolution be sent to the Public
75 Employees' Benefit and Insurance Program.