Bill Text: MS SB2425 | 2018 | Regular Session | Introduced

Mississippi Senate Bill 2425 (Prior Session Legislation)

Introduced

Bill Title: Qualified small employer health reimbursement arrangements; authorize for reimbursing medical expenses of employees.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Failed) 2018-01-30 - Died In Committee [SB2425 Detail]

Download: Mississippi-2018-SB2425-Introduced.html

MISSISSIPPI LEGISLATURE

2018 Regular Session

To: Insurance; Appropriations

By: Senator(s) Hill

Senate Bill 2425

AN ACT TO AUTHORIZE QUALIFIED SMALL EMPLOYER HEALTH REIMBURSEMENT ARRANGEMENTS FOR THE PURPOSE OF REIMBURSING MEDICAL EXPENSES FOR ELIGIBLE EMPLOYEES AND THEIR FAMILY MEMBERS; TO DEFINE CERTAIN TERMS AS USED IN THIS ACT; TO PROVIDE NOTICE REQUIREMENTS; AND FOR RELATED PURPOSES.

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

SECTION 1. Qualified small employer health reimbursement arrangement. (1) For purposes of this section, the following terms shall have the following meanings, unless the context clearly indicates otherwise:

(a) "Qualified small employer health reimbursement arrangement" means an arrangement which:

(i) Is described in paragraph (b) of this subsection; and

(ii) Is provided on the same terms to all eligible employees of the eligible employer.

(b) An arrangement is described in this paragraph if:

(i) Such arrangement is funded solely by an eligible employer and no salary reduction contributions may be made under such arrangement;

(ii) Such arrangement provides, after the employee provides proof of coverage, for the payment of, or reimbursement of, an eligible employee for expenses for medical care incurred by the eligible employee or the eligible employee's family members (as determined under the terms of the arrangement); and

(iii) The amount of payments and reimbursements described in subparagraph (ii) of this paragraph (b) for any year do not exceed Four Thousand Nine Hundred Fifty Dollars ($4,950.00).

(c) For purposes of paragraph (a)(ii) of this subsection, an arrangement shall not fail to be treated as provided on the same terms to each eligible employee merely because the employee's permitted benefit under such arrangement varies in accordance with the variation in the price of an insurance policy in the relevant individual health insurance market based on:

(i) The age of the eligible employee (and, in the case of an arrangement which covers medical expenses of the eligible employee's family members, the age of such family members); or

(ii) The number of family members of the eligible employee the medical expenses of which are covered under such arrangement.

The variation permitted under the preceding sentence shall be determined by reference to the same insurance policy with respect to all eligible employees.

(d) (i) In the case of an individual who is not covered by an arrangement for the entire year, the limitation under paragraph (b)(iii) of this subsection for such year shall be an amount which bears the same ratio to the amount which would (but for this clause) be in effect for such individual for such year under paragraph (b)(iii) of this subsection as the number of months for which such individual is covered by the arrangement for such year bears to twelve (12).

(ii) In the case of any year beginning after 2018, each of the dollar amounts in paragraph (b)(iii) of this subsection shall be increased by an amount equal to:

1. Such dollar amount, multiplied by; and

2. The cost-of-living adjustment determined under paragraph (f) of this subsection for the calendar year in which the taxable year begins.

If any dollar amount increased under the preceding sentence is not a multiple of Fifty Dollars ($50.00), such dollar amount shall be rounded to the next lowest multiple of Fifty Dollars ($50.00).

(e) "Eligible employee" means an eligible employee as defined in Section 83-63-3.

(f) "Eligible employer" means an employer that:

(i) Is a small employer as defined in Section 83-63-3; and

(ii) Does not offer a group health plan to any of its employees.

(g) "Permitted benefit" means, with respect to any eligible employee, the maximum dollar amount of payments and reimbursements which may be made under the terms of the qualified small employer health reimbursement arrangement for the year with respect to such employee.

(2) (a) An eligible employer may offer any eligible employee a qualified small employer health reimbursement arrangement for the purpose of reimbursing medical expenses for such employee and members of this family in accordance with the provisions of this section. An employer funding a qualified small employer health reimbursement arrangement for any year shall, not later than ninety (90) days before the beginning of such year (or, in the case of an employee who is not eligible to participate in the arrangement as of the beginning of such year, the date on which such employee is first so eligible), provide a written notice to each eligible employee which includes the information described in paragraph (b) of this subsection.

(b) The notice required under paragraph (a) of this subsection shall include each of the following:

(i) A statement of the amount which would be such eligible employee's permitted benefit under the arrangement for the year.

(ii) A statement that the eligible employee should provide the information described in subparagraph (i) of this paragraph to any health insurance exchange to which the employee applies for advance payment of the premium assistance tax credit.

(iii) A statement that if the employee is not covered under minimum essential coverage for any month the employee may be subject to tax for such month and reimbursements under the arrangement may be includible in gross income.

(3) For purposes of this section, payments or reimbursements from a qualified small employer health reimbursement arrangement of an individual for medical care shall not be treated as paid or reimbursed under employer-provided coverage for medical expenses under an accident or health plan if for the month in which such medical care is provided the individual does not have minimum essential coverage.

(4) The Commissioner of Insurance is authorized to promulgate rules and regulations necessary to carry out the provisions of this section.

SECTION 2. This act shall take effect and be in force from and after July 1, 2018.