HB 1704-FN-A – AS INTRODUCED
2006 SESSION
01/10
HOUSE BILL 1704-FN-A
AN ACT establishing a health care fund, continually appropriating a special fund, and requiring certain employers to report certain information to the department of health and human services.
SPONSORS: Rep. Moody, Rock 12; Rep. Walz, Merr 13; Rep. Marshall Quandt, Rock 13; Rep. Matthew Quandt, Rock 13; Rep. Harvey, Hills 21; Sen. Fuller Clark, Dist 24
This bill requires employers with 1500 or more employees who do not spend a certain percentage of their payroll toward health care for their employees to put a certain amount into a health care fund which shall be used to support the Medicaid program. This bill grants rulemaking authority to the commissioner of the department of health and human services for the purposes of the bill.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
06-2279
01/10
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Six
AN ACT establishing a health care fund, continually appropriating a special fund, and requiring certain employers to report certain information to the department of health and human services.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 New Subdivision; Fair Share Health Care Fund. Amend RSA 167 by inserting after section 97 the following new subdivision:
167:98 Definitions. In this subdivision:
I. “Commissioner” means the commissioner of the department of health and human services.
II. “Employee” means all individuals employed full-time or part-time directly by an employer.
III. “Employer” means employer as defined in RSA 77-E:1, VIII. The term “employer” shall not include the federal government, the state, another state, or a political subdivision of the state or another state.
IV. “Fund” means the fair share health care fund, established in RSA 167:99.
V. “Health insurance benefits” includes payments for medical care, prescription drugs, vision care, medical savings accounts, and any other costs to provide health benefits, as defined in section 213(d) of the Internal Revenue Code.
VI. “Health insurance costs” means the amount paid by an employer to provide health care or health insurance to employees in the state to the extent the costs may be deductible by the employer under federal tax law. The term “health insurance costs” includes payments for medical care, prescription drugs, vision care, medical savings accounts, and any other costs to provide health benefits as defined in section 213(d) of the Internal Revenue Code.
VII. “Wages” mean wages as defined in RSA 281-A:2, XV.
167:99 Fair Share Health Care Fund. There is hereby established in the office of the state treasurer a fund to be known as the fair share health care fund. Moneys required under RSA 167:100 and any other money from any other source shall be deposited in the fund. Moneys in this fund shall be nonlapsing and continually appropriated to the commissioner to be used to support the operation of the Medicaid program.
167:100 Employers to Provide a Percentage of Payroll.
I. An employer which has 1,500 or more employees and which is:
(a) An employer that is organized as a nonprofit organization that does not spend up to 8.5 percent of the total wages paid to employees in the state on health insurance costs shall pay to the fund each year, an amount equal to the difference between what the employer spends for health insurance costs and an amount equal to 8.5 percent of the total wages paid to employees in the state.
(b) An employer that is organized as a for-profit organization and which does not spend up to 10.5 percent of the total wages paid to employees in the state on health insurance costs shall pay to the fund each year, an amount equal to the difference between what the employer spends for health insurance costs and an amount equal to 10.5 percent of the total wages paid to employees in the state.
II. An employer shall not deduct any payment made under subparagraph I(a) or (b) from the wages of an employee.
167:101 Reporting Guidelines.
I. An employer which has 1500 or more employees shall, commencing on January 1, 2007 and annually thereafter, submit the following information on a department-approved form to the commissioner:
(a) The number of employees of the employer in the state as of one day in the year immediately preceding the previous calendar year as determined by the employer on an annual basis.
(b) The number of employees eligible for health insurance benefits.
(c) The requirements employees and dependents must meet to qualify for health insurance benefits.
(d) The amount spent by the employer in the year immediately preceding the previous calendar year on health insurance costs in the state.
(e) The percentage of payroll that was spent by the employer in the year immediately preceding the previous calendar year on health insurance costs in the state.
II. The information required under paragraph I shall:
(a) Be designated in a report signed by the principal executive officer or an individual performing a similar function; and
(b) Include an affidavit under penalty of perjury that the information required under paragraph I of this section:
(1) Was reviewed by the signing officer; and
(2) Was based on the officer’s knowledge and does not contain any untrue statement of a material fact or omit a material fact necessary to make the statement made not misleading is true to the best of the signing officer’s knowledge, information, and belief.
III. When calculating the percentage of payroll under paragraph I, an employer may exempt:
(a) Wages paid to any employee beyond the amount taxable for federal Social Security (FICA) purposes;
(b) Wages paid to an employee who is enrolled in or eligible for Medicare; and
(c) Wages paid to an employee who is a seasonal worker or works less than 90 days a year.
167:102 Duties of Commissioner; Rulemaking.
I. The commissioner shall, on an annual basis, based on the information reported under RSA 167:101:
(a) Verify which employers in the state have 1500 or more employees in the state.
(b) Ensure that all employers in the state with 1500 or more employees have made the report required under RSA 167:101.
(c) Pay the payroll assessment required under RSA 167:100 to the fund established in RSA 167:99.
II. The commissioner shall adopt rules, pursuant to RSA 541-A, relative to:
(a) When the payments required under RSA 167:100 shall be due.
(b) The content of any forms required under this subdivision.
(c) Further information which may be required under RSA 167:101.
167:103 Penalty. Any employer who violates the provisions of this subdivision shall be guilty of a violation if a natural person, and guilty of a misdemeanor if any other person.
167:104 Report to General Court and Governor Required. On or before March 15 of each year, the commissioner shall make a report to the general court and the governor relative to:
I. The name of each nonprofit and for profit employer with 1500 or more employees in the state.
II. The employer’s definition of full-time employee and part-time employee.
III. The number of full-time employees.
IV. The number of full-time employees eligible to receive health insurance benefits.
V. The number of full-time employees receiving health insurance benefits from the employer.
VI. The source of health insurance benefits for those eligible full-time employees not receiving health insurance benefits through an employer subject to reporting under this subdivision.
VII. The number of part-time employees.
VIII. The number of part-time employees eligible to receive health insurance benefits.
IX. The number of part-time employees receiving health insurance benefits from the employer.
X. The source of health insurance benefits for those eligible part-time employees not receiving health insurance benefits through an employer subject to reporting under this subdivision.
2 New Subparagraph; Treasury. Amend RSA 6:12, I(b) by inserting after subparagraph 242 the following new subparagraph:
(243) Moneys received under RSA 167:100, which shall be credited to the fair share health care fund.
3 Effective Date. This act shall take effect January 1, 2007.
LBAO
06-2279
Revised 1/11/06
HB 1704 FISCAL NOTE
AN ACT establishing a health care fund, continually appropriating a special fund, and requiring certain employers to report certain information to the department of health and human services.
FISCAL IMPACT:
The Department of Health and Human Services states this bill will increase state revenue and expenditures by indeterminable amounts in FY 2007 and each year thereafter. The Insurance Department states this bill will have an indeterminable fiscal impact on state, county, and local revenue and expenditures.
METHODOLOGY:
The Department of Health and Human Services assumed there are relatively few employers in New Hampshire with more than 1,500 employees; and therefore subject to the provisions of this bill. The Department is unable to determine how many non-profits do not spend 8.5% of total wages for health care benefits or how many for-profits do not spend 10.5% of their total payroll for health care benefits. The Department assumed it would incur administrative costs to draft rules, receive and process the reports from employers, monitor employer’s compliance and administer the fund. The Department is not able to project the administrative costs but states these costs are not eligible for federal Medicaid funds.
The Insurance Department stated this bill does not have a direct impact on health insurance costs, but may impact how employers choose to design employee benefit plans. The Department assumed that employers that spend less on employee health insurance may see their costs increase, and if those employers change their health benefit plans there could be an impact on premium tax revenue.