HB1569ham001 97TH GENERAL ASSEMBLY

Rep. Patricia R. Bellock

Filed: 3/14/2011

09700HB1569ham001 LRB097 07275 JDS 52702 a

AMENDMENT TO HOUSE BILL 1569

AMENDMENT NO. ______. Amend House Bill 1569 by replacing everything after the enacting clause with the following:

"Section 5. The State Employees Group Insurance Act of 1971 is amended by adding Section 6.1A as follows:

(5 ILCS 375/6.1A new)

Sec. 6.1A. Health savings accounts.

(a) The program of health benefits 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. This optional coverage alternative shall be available no later than July 1, 2012.

(b) On or before December 31, 2011, the Director shall submit the program designs to the Commission for review. The report on program designs may include multiple options for final implementation, which may, in turn, include various levels of State participation or types of benefit designs. The program designs shall include:

(1) Benefit 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 pre-tax 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.

Program designs shall also be based on the creation of coverage options so that the average per person employer cost of the programs, including the contributions for the health savings accounts and high-deductible plan, does not exceed the average per person employer cost of the self-insured State employee health benefits program for the same fiscal year.

Section 99. Effective date. This Act takes effect upon becoming law.".