HB633 (2005) Detail

Relative to companies which do not provide health insurance to their employees and continually appropriating a special fund.


HB 633-FN-A – AS INTRODUCED

2005 SESSION

05-0423

01/09

HOUSE BILL 633-FN-A

AN ACT relative to companies which do not provide health insurance to their employees and continually appropriating a special fund.

SPONSORS: Rep. Weed, Ches 3; Rep. Pratt, Ches 2; Rep. Owen, Merr 4

COMMITTEE: Labor, Industrial and Rehabilitative Services

ANALYSIS

This bill requires the labor commissioner to assess a fee on private employers who do not provide health insurance to their employees. The moneys from the fees are to be deposited into a special fund to be used for such employees’ health insurance costs.

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Explanation: Matter added to current law appears in bold italics.

Matter removed from current law appears [in brackets and struckthrough.]

Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

05-0423

01/09

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Five

AN ACT relative to companies which do not provide health insurance to their employees and continually appropriating a special fund.

Be it Enacted by the Senate and House of Representatives in General Court convened:

1 New Subdivision; Employers and Health Insurance. Amend RSA 275 by inserting after section 60 the following new subdivision:

Employers and Health Insurance

275:61 Employers and Health Insurance; Fund; Rules.

I. The labor commissioner shall assess a fee of $.50 per hour for each full-time employee, as defined in RSA 274:4, II, of an employer, as defined in RSA 275:4, I, which does not provide health insurance to its employees. The moneys from the fees shall be deposited into the fund established in paragraph II to be used for the employees’ health insurance costs to the extent possible.

II. There is hereby established in the office of the state treasurer a fund to be known as the employees’ health insurance fund. All moneys from fees assessed under paragraph I and interest on the fund shall be deposited in the fund. Moneys in this fund shall be nonlapsing and continually appropriated to the department of labor and shall be expended for the health insurance costs of the employees of those employers, as defined in paragraph I.

III. The labor commissioner shall adopt rules, pursuant to RSA 541-A, relative to:

(a) The application process.

(b) Content and format of all forms required under this subdivision.

(c) How the fee required under paragraph I is to be assessed and the procedure for remittance to the commissioner for deposit into the fund established in paragraph II.

(d) Promoting awareness among eligible employees of the benefit established under this subdivision.

2 New Subparagraph; Employees’ Health Insurance Fund. Amend RSA 6:12, I by inserting after subparagraph (234) the following new subparagraph:

(235) Moneys deposited in the employees’ health insurance fund pursuant to RSA 275:61, I.

3 Effective Date. This act shall take effect 60 days after its passage.

LBAO

05-0423

Revised 2/8/05

HB 633 FISCAL NOTE

AN ACT relative to companies which do not provide health insurance to their employees and continually appropriating a special fund.

FISCAL IMPACT:

      The Department of Employment Security has determined this bill will increase state restricted revenue and expenditures by $111,102,160 in FY 2006 and each year thereafter. The Department of Labor has determined this bill will increase state general fund expenditures by $169,403 in FY 2006, $162,804 in FY 2007, $170,285 in FY 2008, and $177,670 in FY 2009. There will be no fiscal impact on county and local revenue or expenditures.

METHODOLOGY:

    The Department of Employment Security states this bill will require the Commissioner of Labor to assess a fee on private employers that do not provide health insurance to their full-time employees. The Department assumes this bill applies only to private employers that do not provide any form of health insurance coverage to employees. According to the US Bureau of Labor Statistics, there were 537,000 full-time workers in New Hampshire during calendar year 2002, and 449,000 of these employees had some form of health insurance. The Department assumes 96% of insured workers, or 430,171 are full-time. The Department estimated the number of full-time workers without health insurance provided by their employer (537,000 full-time workers – 430,171 full-time workers with employer-provided health insurance = 106,829 full-time workers receiving no health insurance from their employer). The Department estimated the restricted revenue generated by this bill in FY 2006 and each year thereafter as follows:

    106,829 full-time workers receiving no health insurance from their employer x 52 weeks/year x 40 hours per week x $0.50 per hour = $111,102,160

    The Department of Employment Security states 100% of this restricted revenue, or $111,102,160, would be expended for health insurance costs in FY 2006 and each year thereafter.

    The Department of Labor states it will need to hire 1 additional Wage and Hour Administrator (labor grade 31) and 2 additional Labor Inspectors (labor grade 19) to enforce this bill. The Department states hiring these additional employees will increase state general fund expenditures by $169,403 in FY 2006, $162,804 in FY 2007, $170,285 in FY 2008, and $177,670 in FY 2009, including salary, benefits (44% of salary), office equipment, computers, and phone charges.