Bill Text: HI HB407 | 2017 | Regular Session | Amended
Bill Title: Relating To Insurance.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Enrolled - Dead) 2017-04-25 - Conference committee meeting to reconvene on 04-26-17 1:00PM in conference room 016. [HB407 Detail]
Download: Hawaii-2017-HB407-Amended.html
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HOUSE OF REPRESENTATIVES |
H.B. NO. |
407 |
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TWENTY-NINTH LEGISLATURE, 2017 |
H.D. 1 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
RELATING TO INSURANCE.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The purpose of this Act is to facilitate the availability in Hawaii of high deductible health plans that may be purchased by members of the labor force for use with a health savings account. Maintenance of a health savings accounts is intended to be a required condition of maintenance of a high deductible health plan. It is the intent of the legislature that health savings accounts shall be used to pay for or reimburse qualifying medical expenses and to maximize favorable tax treatment through year-to-year accumulation of contributions, which may be distributed on a tax-free basis.
This Act shall be liberally construed to allow employers and employees to receive maximum tax benefits provided in federal or state law through the use of a high deductible health plan.
SECTION 2. Chapter 431, Hawaii Revised Statutes, is amended by adding a new section to article 10A to be appropriately designated and to read as follows:
"§431:10A- High deductible health plan; limitations. (a) On or after January 1, 2018, and subject to regulation by the commissioner and the department of labor and industrial relations, an insurer may offer, sell, or renew a high deductible health plan to employers that are subject to chapter 393; provided that:
(1) The insurer shall also sell the employer a prepaid health care plan group accident and health or sickness insurance policy that is not a high deductible health plan;
(2) The insurer shall ensure that a prepaid health care plan group accident and health or sickness insurance policy that is not a high deductible health plan is offered to each eligible insured;
(3) The employer shall contract with a third party to offer and manage health savings accounts, which shall be maintained by each employee who elects a high deductible health plan; and
(4) The employer shall deposit funds in an amount equal to the applicable deductible amount in each health savings account maintained in conjunction with a high deductible health plan pursuant to this section.
(b) Nothing in this section shall allow an employer subject to chapter 393 to avoid providing a prepaid health care plan. It shall be a violation of this section for any insurer subject to this section to offer, sell, or renew a stand-alone high deductible health plan or stand-alone health savings account to an employer that is subject to chapter 393.
(c) If this section or any provision of this section conflicts at any time with any federal law, then the federal law shall prevail and this section or the relevant provisions of this section shall become ineffective and invalid. The ineffectiveness or invalidity of this section or any of its provisions shall not affect any other provisions or applications of this section, which shall be given effect without the invalid provision or application, and to this end, the provisions of this section are severable.
(d) Nothing in this section shall require an insurer to provide a health savings account to an employer.
(e) Nothing in this section shall be construed to affect collectively bargained agreements.
(f) As used in this section, unless the context clearly requires otherwise:
"Health savings account" means a health savings account authorized under section 223 of the Internal Revenue Code of 1986.
"High deductible health plan" shall have the same meaning as in section 223 of the Internal Revenue Code of 1986.
"Prepaid health care plan" shall have the same meaning as in section 393-3."
SECTION 3. Chapter 432, Hawaii Revised Statutes, is amended by adding a new section to article 1 to be appropriately designated and to read as follows:
"§432:1- High deductible health plan; limitations. (a) On or after January 1, 2018, and subject to regulation by the commissioner and the department of labor and industrial relations, a mutual benefit society may offer, sell, or renew a high deductible health plan to employers that are subject to chapter 393; provided that:
(1) The mutual benefit society shall also sell the employer a prepaid health care plan group hospital and medical service plan that is not a high deductible health plan;
(2) The mutual benefit society shall ensure that prepaid health care plan group hospital and medical service plan that is not a high deductible health plan is offered to each eligible member;
(3) The employer shall contract with a third party to offer and manage health savings accounts, which shall be maintained by each employee who elects a high deductible health plan; and
(4) The employer shall deposit funds in an amount equal to the applicable deductible amount in each health savings account maintained in conjunction with a high deductible health plan pursuant to this section.
(b) Nothing in this section shall allow an employer subject to chapter 393 to avoid providing a prepaid health care plan. It shall be a violation of this section for any mutual benefit society subject to this section to offer, sell, or renew a stand-alone high deductible health plan or stand-alone health savings account to an employer that is subject to chapter 393.
(c) If this section or any provision of this section conflicts at any time with any federal law, then the federal law shall prevail and this section or the relevant provisions of this section shall become ineffective and invalid. The ineffectiveness or invalidity of this section or any of its provisions shall not affect any other provisions or applications of this section, which shall be given effect without the invalid provision or application, and to this end, the provisions of this section are severable.
(d) Nothing in this section shall require a mutual benefit society to provide the health savings account to an employer.
(e) Nothing in this section shall be construed to affect collectively bargained agreements.
(f) As used in this section, unless the context clearly requires otherwise:
"Health savings account" means a health savings account authorized under section 223 of the Internal Revenue Code of 1986.
"High deductible health plan" shall have the same meaning as in section 223 of the Internal Revenue Code of 1986.
"Prepaid health care plan" shall have the same meaning as in section 393-3."
SECTION 4. Section 432D-23, Hawaii Revised Statutes, is amended to read as follows:
"§432D-23 Required provisions and benefits.
Notwithstanding any
provision of law to the contrary, each policy, contract, plan, or agreement
issued in the State after January 1, 1995, by health maintenance organizations
pursuant to this chapter, shall include benefits provided in sections
431:10-212, 431:10A-115, 431:10A-115.5, 431:10A-116, 431:10A‑116.2,
431:10A-116.5, 431:10A-116.6, 431:10A-119, 431:10A-120, 431:10A-121,
431:10A-122, 431:10A-125, 431:10A-126, 431:10A-132, 431:10A-133, 431:10A-134,
431:10A-140, and [431:10A-134,] 431:10A- , and
chapter 431M."
SECTION 5. Notwithstanding section 432D-23, Hawaii Revised Statutes, the high deductible health plan in conjunction with a health savings account to be provided by a health maintenance organization under section 4 of this Act shall apply to all group policies, contracts, plans, or agreements issued or renewed in this State by a health maintenance organization on or after January 1, 2018.
SECTION 6. If any provision of this Act, or the application thereof to any person or circumstance, is held invalid, the invalidity does not affect other provisions or applications of the Act that can be given effect without the invalid provision or application, and to this end the provisions of this Act are severable.
SECTION 7. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 8. This Act shall take effect on July 1, 2090, and shall be repealed on June 30, 2022.
Report Title:
High Deductible Health Plans; Health Savings Accounts; Insurance
Description:
Authorizes the issuance of employer-sponsored high deductible health. Requires maintenance of health savings accounts in conjunction with high deductible health plans. Requires the employer to fund deductible costs. Specifies that employers and insurers that buy or sell high deductible health plans remain subject to the Prepaid Health Care Act. (HB407 HD1)
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
