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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.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.
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
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| 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 | |||
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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
| Date | Body | Type |
|---|---|---|
| Jan. 22, 2020 | House | Hearing |
| Feb. 5, 2020 | House | Exec Session |
| House | Floor Vote | |
| Feb. 19, 2020 | House | Floor Vote |
Feb. 19, 2020: Inexpedient to Legislate: MA VV 02/19/2020 HJ 4 P. 13
: Committee Report: Inexpedient to Legislate (Vote 19-0; CC)
Feb. 19, 2020: Committee Report: Inexpedient to Legislate for 02/19/2020 (Vote 19-0; CC) HC 7 P. 9
Feb. 5, 2020: Executive Session: 02/05/2020 01:30 pm LOB 306
Jan. 22, 2020: Public Hearing: 01/22/2020 01:00 pm LOB 306
Jan. 8, 2020: Introduced 01/08/2020 and referred to Executive Departments and Administration HJ 1 P. 27