HB1574 (2020) Detail

Relative to state health savings accounts.


HB 1574-FN - AS INTRODUCED

 

 

2020 SESSION

20-2353

01/10

 

HOUSE BILL 1574-FN

 

AN ACT relative to state health savings accounts.

 

SPONSORS: Rep. Abramson, Rock. 20

 

COMMITTEE: Executive Departments and Administration

 

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ANALYSIS

 

This bill requires the commissioner of the department of administrative services to contract with a suitable company or suitable companies to provide health savings accounts for a high deductible health plan.  Under this bill, all public and private employees may elect to participate in the health savings account program.  This bill also exempts any balances in health savings accounts from the interest and dividends tax.

 

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

20-2353

01/10

 

STATE OF NEW HAMPSHIRE

 

In the Year of Our Lord Two Thousand Twenty

 

AN ACT relative to state health savings accounts.

 

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

 

1  New Subdivision; Health Savings Accounts.  Amend RSA 21-I by inserting after section 36-b the following new subdivision:

Health Savings Accounts

21-I:36-c  Health Savings Accounts Program Established.  The commissioner of administrative services shall establish a federal qualified health savings account program for high deductible health plans as an option for retired state employees between the ages of 45 and 65.  The health savings accounts shall not include the insurance mandates in current New Hampshire statutes.  The commissioner is hereby authorized to enter into a contract or contracts with a suitable company or companies necessary to implement such program.  All public and private employees may elect to participate in the health savings accounts program.  The members of the high deductible health savings plans shall be responsible for their premiums and shall determine the coverages and deductibles to be included in the plan.  Notwithstanding any provision of RSA 77, any balances in the health savings accounts shall not be subject to the interest and dividends tax under RSA 77.  The commissioner shall adopt rules, pursuant to RSA 541-A, relative to the implementation of the program.

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

 

LBAO

20-2353

11/22/19

 

HB 1574-FN- FISCAL NOTE

AS INTRODUCED

 

AN ACT relative to state health savings accounts.

 

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

$0

Indeterminable Decrease

Indeterminable Decrease

Indeterminable Decrease

   Expenditures

$0

Indeterminable Increase

Indeterminable Increase

Indeterminable Increase

Funding Source:

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

 

 

 

 

 

METHODOLOGY:

This bill requires the Commissioner of the Department of Administrative Services (DAS) to establish a federal qualified health savings account program for high deductible health plans as an option for retired state employees between the ages of 45 and 65.  All public and private employees may elect to participate in this program.  The Commissioner is authorized to contract for services to implement the program.  Balances in these accounts shall not be subject to the Interest and Dividends Tax under RSA 77.

 

The Department of Administrative Services states the extent of program participation ranges vastly from state employees between the ages of 45 and 65 and all public and private employees. Because of this variability, DAS cannot predict the extent of any costs that will be incurred to contract with a vendor to implement and administer this program or how much additional staff may be necessary to do so.

 

The Department of Revenue Administration indicates there is no applicability date for taxable periods nor does it provide an exemption under the Interest and Dividends Tax statute (RSA 77).   The DRA assumes this bill would be applicable to taxable periods ending on or after July 1, 2020. DRA states there would be  a loss of Interest and Dividends Tax revenue of an indeterminable amount.  DRA indicates it could administer the change to the tax without additional expenditures.

 

AGENCIES CONTACTED:

Department of Administrative Services and Department of Revenue Administration

 

Links

HB1574 at GenCourtMobile
HB1574 Discussion

Action Dates

Date Body Type
Jan. 22, 2020 House Hearing
Feb. 5, 2020 House Exec Session
House Floor Vote
Feb. 19, 2020 House Floor Vote

Bill Text Revisions

HB1574 Revision: 7189 Date: Dec. 3, 2019, 11:45 a.m.

Docket

Date Status
Jan. 8, 2020 Introduced 01/08/2020 and referred to Executive Departments and Administration
Jan. 22, 2020 Public Hearing: 01/22/2020 01:00 pm LOB 306
Feb. 5, 2020 Executive Session: 02/05/2020 01:30 pm LOB 306
Feb. 19, 2020 Committee Report: Inexpedient to Legislate for 02/19/2020 (Vote 19-0; CC) HC 7 P. 9
Committee Report: Inexpedient to Legislate (Vote 19-0; CC)
Feb. 19, 2020 Inexpedient to Legislate: MA VV 02/19/2020