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PRINTER'S NO. 1651
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
1357
Session of
2019
INTRODUCED BY B. MILLER, MILLARD, MURT, RYAN, ZIMMERMAN, GROVE,
MACKENZIE, SCHLEGEL CULVER, GABLER, GAYDOS, LEWIS, GLEIM AND
RAPP, MAY 1, 2019
REFERRED TO COMMITTEE ON STATE GOVERNMENT, MAY 1, 2019
AN ACT
Amending Title 40 (Insurance) of the Pennsylvania Consolidated
Statutes, providing for health savings accounts.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Title 40 of the Pennsylvania Consolidated
Statutes is amended by adding a part to read:
PART I-A
SPECIAL ACCOUNTS
Chapter
5. Health Savings Accounts
CHAPTER 5
HEALTH SAVINGS ACCOUNTS
Subchapter
A. General Provisions
B. State Employee Health Savings Accounts
SUBCHAPTER A
GENERAL PROVISIONS
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Sec.
501. Scope of chapter.
502. Definitions.
§ 501. Scope of chapter.
This chapter relates to health savings accounts.
§ 502. Definitions.
The following words and phrases when used in this chapter
shall have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Health insurance policy." An individual or group health,
sickness or accident policy or subscriber contract or
certificate issued by an entity subject to any one of the
following:
(1) The act of May 17, 1921 (P.L.682, No.284), known as
The Insurance Company Law of 1921, including section 630 and
Article XXIV of that act.
(2) The act of December 29, 1972 (P.L.1701, No.364),
known as the Health Maintenance Organization Act.
(3) The act of May 18, 1976 (P.L.123, No.54), known as
the Individual Accident and Sickness Insurance Minimum
Standards Act.
(4) Chapter 61 (relating to hospital plan corporations)
or 63 (relating to professional health services plan
corporations).
"Health savings account." As defined in section 223(d) of
the Internal Revenue Code.
"High deductible health plan." As defined in section 223(c)
(2) of the Internal Revenue Code.
"Internal Revenue Code." The Internal Revenue Code of 1986
(Public Law 99-514, 26 U.S.C. § 1 et seq.).
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"State employee." As defined in 71 Pa.C.S. § 5102 (relating
to definitions).
SUBCHAPTER B
STATE EMPLOYEE HEALTH SAVINGS ACCOUNTS
Sec.
511. Scope of subchapter.
512. Definitions.
513. Establishment of program.
514. Program designs.
515. Training.
§ 511. Scope of subchapter.
This subchapter relates to health savings accounts and high
deductible health plans for State employees.
§ 512. Definitions.
The following words and phrases when used in this subchapter
shall have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Program." The alternative and optional program established
under section 513 (relating to establishment of program).
§ 513. Establishment of program.
On or before July 1, 2021, the Pennsylvania Employees Benefit
Trust Fund shall offer, as an alternative and on an optional
basis, a program for the use of health savings accounts with a
qualifying State-sponsored, high deductible health plan.
§ 514. Program designs.
(a) Submittal.--On or before January 1, 2021, the Office of
Administration shall s ubmit a report on the program designs to
the Independent Fiscal Office for review.
(b) Optional contents.--The report on the program designs
may include multiple options for final implementation, such as
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various levels of State participation and types of benefit
designs.
(c) Mandatory contents.--The program designs shall include
all of the following:
(1) B enefit designs, including deductible amounts, for
the high deductible health plans.
(2) Premium amounts for the high deductible health
plans.
(3) Employee and employer contribution strategies for
the high deductible health plan premiums.
(4) Employer and employee contribution strategies for
the health savings account deposits.
(5) The ability for employees to make pretax
contributions through a salary deferral arrangement for the
health savings accounts.
(6) Options for custodial arrangements for the health
savings accounts.
(7) Investment options for health savings account
holders.
(8) Assessment of administrative and claim costs.
(9) Statements of the actuarial assumptions, including
demographic, participation and utilization assumptions, used
in program designs.
(10) An analysis of the impact on existing health plans
of offering the option of health savings accounts paired with
a high deductible health plan.
(d) Basis.--The p rogram designs shall be based on the
creation of coverage options so that the average per person
employer cost of the program, including the contributions for
the health savings accounts and high deductible plan, does not
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exceed the average per person employer cost of the traditional
State employee health benefits program for the same fiscal year.
§ 515. Training.
(a) Coordination.--The Office of Administration shall
coordinate and offer training for State employees, including
online training, regarding the program and health benefit plan
options offered to State employees.
(b) Requirement.--Each employer participating in a State
employee health benefit plan shall require each of its employees
to complete training on the health benefit plan options
available to the employee. The training:
(1) m ay be completed online; and
(2) shall be completed:
(i) before the end of the 2021 open enrollment
period for individuals who are State employees as of
January 1, 2021; and
(ii) prior to the employee's selection of a health
benefit plan, if the employee was hired after January 1,
2021.
Section 2. This act shall take effect immediately.
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