PRINTER'S NO. 96

THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

No.

131

Session of

2017

INTRODUCED BY BAKER, MILLARD, GREINER, RAPP, MURT, BARRAR,

KAUFFMAN, MENTZER, PHILLIPS-HILL, READSHAW, ZIMMERMAN, GROVE,

WARD, MARSICO, WATSON AND GABLER, JANUARY 23, 2017

hereby enacts as follows:

Section 1. Title 40 of the Pennsylvania Consolidated

Statutes is amended by adding a chapter to read:

CHAPTER 3

Sec.

301. Scope of chapter.

302. No unfair trade practice.

303. No required relationship.

304. Health reimbursement arrangement-only plans.

§ 302. No unfair trade practice.

Insurers that include and operate wellness and health

promotion programs, disease and condition management programs,

health risk appraisal programs and similar provisions in their

high deductible health policies in keeping with Federal

requirements shall not be considered to be engaging in unfair

trade practices under any provision of law relating to unfair

trade practices with respect to the practices of illegal

inducements, unfair discrimination and rebating.

§ 303. No required relationship.

preferred providers compared to other providers that unfairly

deny benefits for covered services;

benefit levels for services provided by nonpreferred

providers that is less than 60% of the benefit levels under

the policy for the services; or

quality of services.

§ 304. Health reimbursement arrangement-only plans.

health-related expenses recognized under Federal law.

not sold in connection with or packaged with health insurance

coverage shall not be considered insurance.

health reimbursement arrangement-only plans shall not be

considered employer sponsored or group coverage, and nothing

in this section shall be interpreted to require an insurer to

offer an individual health insurance policy for sale in

connection with or packaged with a health reimbursement

income tax purposes an amount equal to 100% of the premium paid

by the taxpayer during the taxable year for high deductible

health plans which are eligible to be used with a health savings

account under the applicable provisions of section 223 of the

Internal Revenue Code of 1986 (Public Law 99-514, 26 U.S.C. §

223) to the extent the deduction has not been included in

Federal adjusted gross income and the expenses have neither been

provided from a health reimbursement arrangement nor included in

itemized nonbusiness deductions excluded from the taxpayer's

taxable income.

expenses in an amount of $250 for each employee enrolled for

12 consecutive months in a qualified health insurance plan if

qualified health insurance is made available to all of the

employees and compensated individuals of the employer under

the applicable provisions of section 125 of the Internal

Revenue Code of 1986 (Public Law 99-514, 26 U.S.C. § 125).

under this section for a taxable year exceed the taxpayer's

income tax liability. Any unused tax credit shall be allowed

the taxpayer against succeeding years' tax liability. No

with regard to qualified health insurance expenses.

(b) Definitions.--As used in this section, the following

words and phrases shall have the meanings given to them in this

subsection unless the context clearly indicates otherwise:

"Qualified health insurance." A high deductible health plan

that includes, at a minimum, catastrophic health care coverage

which is eligible to be used with a health savings account under

the applicable provisions of section 223 of the Internal Revenue

Code of 1986 (Public Law 99-514, 26 U.S.C. § 223).

"Qualified health insurance expense." The expenditure of

Internal Revenue Service Form 1099, 50 or fewer persons and for

whom the employer provides high deductible health plans, that

include catastrophic health care coverage, which are established

and used with a health savings account under the applicable

provisions of section 223 of the Internal Revenue Code of 1986

(Public Law 99-514, 26 U.S.C. § 223) and in which the employees

are enrolled.

§ 307. Exemption from insurance premium tax.

Insurers shall be exempt from otherwise applicable taxes on

insurance premiums paid by residents for high deductible health

approval of health savings account eligible high deductible

plans designed to qualify under Federal and State

requirements as high deductible health plans for use with

health savings accounts.

savings account eligible high deductible plans by accident

and sickness insurers. Nothing in this section shall be

construed to authorize the sale of insurance in violation of

requirements relating to the transaction of insurance or

prohibiting the interstate sale of insurance.

residents of this Commonwealth.

approval process for health savings account eligible high

deductible plans already approved under the laws and

regulations of this Commonwealth or other states.

promotion and regulation of health savings account eligible

high deductible plans, including rules and regulations for

expedited review of standardized policies, advertisements,

solicitations and other matters deemed relevant.