House File 694 - Introduced



                                       HOUSE FILE       
                                       BY  L. MILLER


    Passed House,  Date               Passed Senate, Date             
    Vote:  Ayes        Nays           Vote:  Ayes        Nays         
                 Approved                            

                                      A BILL FOR

  1 An Act relating to the offering of health care coverage to state
  2    employees through high deductible health plans and health
  3    savings accounts.
  4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  5 TLSB 2650YH 83
  6 mg/nh/5

PAG LIN



  1  1    Section 1.  NEW SECTION.  509A.12A  HEALTH SAVINGS ACCOUNTS
  1  2 FOR STATE EMPLOYEES AND RETIREES.
  1  3    1.  For purposes of this section:
  1  4    a.  "Health savings account" or "high deductible health
  1  5 plan" mean the same as defined in section 223 of the Internal
  1  6 Revenue Code.
  1  7    b.  "Internal Revenue Code" means the same as defined in
  1  8 section 422.3.
  1  9    2.  Beginning with the open enrollment period for the 2010
  1 10 plan year, the executive council of the state shall offer to
  1 11 all state employees and retirees, in addition to the plans
  1 12 currently offered, the option of receiving health care
  1 13 coverage through a high deductible health plan and the
  1 14 establishment of a health savings account.  In no instance
  1 15 shall an employee or retiree be required to enroll in a high
  1 16 deductible health plan with a deductible greater than the
  1 17 minimum allowed by law.  However, an employee or retiree shall
  1 18 have the option to enroll in a high deductible health plan up
  1 19 to the maximum allowed by law.  The health savings account
  1 20 shall conform to the guidelines established pursuant to
  1 21 section 223 of the Internal Revenue Code for the applicable
  1 22 tax year but in no case shall an employee or retiree be
  1 23 required to contribute more than the minimum amount allowed by
  1 24 law.  A qualified employee or retiree may contribute up to the
  1 25 maximum allowed by law.  In order for a state employee or
  1 26 retiree to obtain a high deductible health plan under this
  1 27 section, such individual shall present evidence, in a manner
  1 28 prescribed by the executive council, to the council that the
  1 29 individual has established a health savings account in
  1 30 compliance with section 223 of the Internal Revenue Code.
  1 31    3.  The executive council shall issue a request for
  1 32 proposals from companies interested in offering a high
  1 33 deductible health plan in connection with a health savings
  1 34 account.
  1 35    4.  The executive council of the state shall adopt rules
  2  1 for the administration and implementation of this section.
  2  2                           EXPLANATION
  2  3    This bill directs the state executive council to offer,
  2  4 beginning with the open enrollment period for the 2010 plan
  2  5 year, the option for state employees or retirees to receive
  2  6 health care coverage through a high deductible health plan and
  2  7 the establishment of a health savings account.
  2  8    High deductible health plans and health savings accounts
  2  9 are defined in the Internal Revenue Code.  A high deductible
  2 10 health plan is a plan with a minimum annual deductibility of
  2 11 $1,100 for single=only coverage and $2,200 for family
  2 12 coverage.  In addition, the annual out=of=pocket expenses
  2 13 cannot exceed $5,600 for self=only coverage and $11,200 for
  2 14 family coverage.  These figures are adjusted for inflation.
  2 15 Contributions made to a health savings account are deductible
  2 16 in determining federal adjusted gross income and thus
  2 17 deductible for Iowa tax purposes.  The amount of the deduction
  2 18 is adjusted for inflation and is approximately $2,850 for
  2 19 self=only coverage and $5,650 for family coverage.
  2 20 LSB 2650YH 83
  2 21 mg/nh/5