HF 2356

as introduced - 86th Legislature (2009 - 2010) Posted on 02/09/2010 02:03am

A bill for an act
relating to insurance; regulating the state employee group insurance plan;
establishing the plan as a high deductible health plan; requiring health savings
accounts to be offered to enrollees; proposing coding for new law in Minnesota
Statutes, chapter 43A.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

new text begin [43A.221] BENEFIT STRUCTURE; HEALTH SAVINGS ACCOUNTS.
new text end

new text begin (a) The state employee group insurance plan must be structured as a high deductible
health plan that would allow both the employer and participants to qualify under federal
law to use health savings accounts to:
new text end

new text begin (1) cover the annual deductible required under the high deductible health plan;
new text end

new text begin (2) provide open access to health care services and unlimited patient choice by
providing carrier open access networks for all plans offered;
new text end

new text begin (3) save on health care costs by encouraging price comparison shopping; and
new text end

new text begin (4) create a tax-free, interest-earning fund for future medical expenses.
new text end

new text begin (b) The high deductible health plan must have an annual deductible of $2,000 for
self-only coverage or $4,000 for family coverage. It must cover in-network preventive
care at 100 percent not subject to the deductible and, once the deductible has been met,
must cover other care with no further enrollee cost-sharing. The employer must pay 100
percent of the premium, or premium equivalent if the plan is self-insured, for the high
deductible health plan.
new text end

new text begin (c) The employer must offer a premium-only plan flexible spending account under
the Internal Revenue Code, section 125, that includes a health savings account that
qualifies under the Internal Revenue Code, section 223(d), allowing for qualified pretax
employee elective salary deferrals into the health savings account.
new text end

new text begin (d) The employer must contribute to the eligible person's health savings account
$1,200 per calendar year for self-only coverage or $2,400 for family coverage, whichever
applies. The employer must begin each calendar year by depositing the first calendar
year quarter's prorated annual deposit into each employee's health savings account. The
employer must advance up to the annual health savings account employer commitment
based upon verifiable medical need for qualified health care expenses. The employee may
voluntarily contribute to the health savings account on a pretax payroll deduction basis,
not to exceed the maximum annual employee contribution permitted under federal tax law.
new text end

new text begin (e) The goal of the employer is to expand coverage through the health savings
account for eligible items, including but not limited to:
new text end

new text begin (1) all preventive and medical care services;
new text end

new text begin (2) eyeglasses, contact lenses, and laser eye surgery;
new text end

new text begin (3) preventive and restorative dental procedures, including orthodontics;
new text end

new text begin (4) all over-the-counter medications and supplies;
new text end

new text begin (5) future long-term care policy premiums; and
new text end

new text begin (6) future Medicare Part B premiums.
new text end

new text begin (f) The goal of the employer is to enable a dramatic reduction in potential
out-of-pocket financial liability to the employee with both single and family coverage
as compared to the present plan.
new text end

new text begin (g) Further, the goal of the employer is to eliminate the employee's net out-of-pocket
plan liability through both tax-free accumulations of both employee elective pretax
payroll contributions, as well as the accumulation of unused health savings account funds
from year to year.
new text end

new text begin (h) Further, it is the employer's goal to allow for the portability of employee-owned
pretax health savings account accumulations into retirement for the purpose of financing
health care needs of the retired employee after retirement on a tax-free basis.
new text end

new text begin (i) And further, it is within the spirit of this section to reinvest any future premium
reductions of the high-deductible health plan back into the employee health savings
accounts as a reward for their successful efforts in achieving the goals of this new plan.
new text end

new text begin (j) The commissioner shall contract with an independent insurance agency or broker
in order to receive a financial cost savings analysis and recommendations regarding design
and implementation of coverage offered in the state employees group insurance program.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for insurance plan years beginning
January 1, 2011, and thereafter.
new text end