HB1434 (2020) Detail

Repealing premium contribution requirements for certain state and judicial retirees.


HB 1434-FN - AS INTRODUCED

 

 

2020 SESSION

20-2328

10/03

 

HOUSE BILL 1434-FN

 

AN ACT repealing premium contribution requirements for certain state and judicial retirees.

 

SPONSORS: Rep. Schuett, Merr. 20; Rep. Desjardin, Hills. 13; Rep. Doherty, Merr. 20; Rep. M. Pearson, Rock. 34

 

COMMITTEE: Executive Departments and Administration

 

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ANALYSIS

 

This bill repeals the requirements for retired state employees and judicial retirees who are medicare-eligible to pay premium contributions for the state retiree health plan.

 

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

20-2328

10/03

 

STATE OF NEW HAMPSHIRE

 

In the Year of Our Lord Two Thousand Twenty

 

AN ACT repealing premium contribution requirements for certain state and judicial retirees.

 

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

 

1  Repeals; Provisions Requiring Premium Contributions for State, Local, and Judicial Retirees who are Eligible for Medicare Parts A and B.  The following are repealed:

I.  RSA 100-A:54, III(b), relative to premium contributions for retired state employees in the retirement system.

II.  RSA 21-I:30, XIII(b), relative to premium contributions for retired state employees not in the retirement system.

III.  RSA 100-C:11-a, II, relative to premium contributions for judicial retirement plan retirees.

IV.  2017, 156:10, I, relative to the 10 percent premium contribution.

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

 

LBAO

20-2328

Revised 1/15/20

 

HB 1434-FN- FISCAL NOTE

AS INTRODUCED

 

AN ACT repealing premium contribution requirements for certain state and judicial retirees.

 

FISCAL IMPACT:      [ X ] State              [    ] County               [    ] Local              [    ] None

 

 

 

Estimated Increase / (Decrease)

STATE:

FY 2020

FY 2021

FY 2022

FY 2023

   Appropriation

$0

$0

$0

$0

   Revenue

($1,318,400)

($1,521,100)

($1,762,000)

($2,031,000)

   Expenditures

$0

$0

$0

$0

Funding Source:

  [ X ] General            [ X ] Education            [ X ] Highway           [ X ] Other

 

METHODOLOGY:

This bill repeals the premium contributions for state local and judicial retirees who are eligible for Medicare Parts A and B.  The Department of Administrative Services (DAS) states that approximately 3,500 Medicare eligible retirees/spouses are required to pay 10% of the monthly premium (working rate) or $32.04 per month in FY 2020, based on the number of Medicare retirees and spouses with a date of birth on or after January 1, 1949.  DAS used budgeted rates to calculate the loss of these funds for FY 2020 and FY 2021.  DAS projected increases in premium rates and enrollments to compile the estimated loss of these funds for FY 2022 and FY 2023.  DAS states the Retiree Health Benefit Plan is required to administer the Plan within the funds appropriated.  Elimination of the Medicare eligible retiree premium contribution as a source of funding the plan would require plan design changes which would increase the cost of health care for those using the Plan.  Examples of such changes may include increases in pharmacy co-payments or prescription drug deductibles for all retirees.  Repealing these provisions will also increase other post-employment benefits liability to the State, required to be reported per Governmental Accounting Standards Board guidelines.

 

The New Hampshire Retirement System indicates it will cost approximately $2,500 to make the necessary software changes to implement this bill.

 

AGENCIES CONTACTED:

Department of Administrative Services and New Hampshire Retirement System

 

Links

HB1434 at GenCourtMobile
HB1434 Discussion

Action Dates

Date Body Type
Jan. 21, 2020 House Hearing
Feb. 12, 2020 House Exec Session
House Floor Vote
Feb. 19, 2020 House Floor Vote

Bill Text Revisions

HB1434 Revision: 7074 Date: Jan. 17, 2020, 9:39 a.m.

Docket

Date Status
Jan. 8, 2020 Introduced 01/08/2020 and referred to Executive Departments and Administration HJ 1 P. 22
Jan. 21, 2020 Public Hearing: 01/21/2020 01:00 pm LOB 306
Feb. 12, 2020 Executive Session: 02/12/2020 10:00 am LOB 306
Majority Committee Report: Ought to Pass (Vote 14-5; RC)
Feb. 19, 2020 Majority Committee Report: Ought to Pass for 02/19/2020 (Vote 14-5; RC) HC 7 P. 30
Minority Committee Report: Inexpedient to Legislate
Feb. 20, 2020 Lay on Table (Rep. Ley): MA VV 02/20/2020