House of Representatives

HB 2513

salary adjustments; state employees

Sponsors: Brimhall

 

DPA

S/E

Committee on Retirement & Government Operations

DPA

S/E

Committee on Appropriations

D/C

Committee on Financial Institutions & Insurance

DPA

Caucus and COW

 

X

As Transmitted to the Governor

 

HB 2513 requires the Department of Administration (DOA) to offer medical savings account (MSA) programs as an optional benefit program to employees of the state, political subdivisions, school districts and charter schools.

 

History

Current law authorizes any resident of the state to establish an MSA. An MSA is a tax-advantaged non-profit account intended for medical expenses, offering a tax shelter, provider choices, long-term care protection and control over savings account money.   Statute authorizes annual deposits from individuals or employers up to $2,000 per individual and an additional $1,000 for each dependent up to a maximum of $4000 (adjusted to the GDP price deflator).  Individual MSA contributions are deductible for income tax purposes and withdrawals for eligible medical expenses are not subject to taxation.  Withdrawals for other purposes are considered income, to be taxed accordingly and subject to a 10% penalty, unless made on the last day of the year.

 

Provisions

·                      Clarifies that DOA shall seek, designate and adopt performance standards for qualifying MSA programs.

 

·                      Requires DOA to expend public monies appropriated for the purpose of procuring qualified health care plans for MSA programs for employees of the state, political subdivisions, school districts and charter schools.

 

·                      Requires MSA health care plans to be statewide contracts.

 

·                      Requires DOA to identify and designate MSA providers to serve as MSA trustees.

 

·                      States that MSA trustees shall be financial institutions or insurance providers who serve as trustees for the tax-exempt MSA component of MSA programs.

 

·                      Prohibits DOA from procuring the MSA provider component of MSA programs.

 

·                      Requires DOA to administer and expend public monies for the insurance premiums of qualified health care plans for MSA programs.

 

·                      Requires qualified employees to pay for the health care insurance deductibles, trustee administrative fees and employee contributions to individual MSAs.

 

 

 

 

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45th Legislature                                                                                                                                   

First Regular Session                                       2                                                             April 19, 2001

 

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