SB 902 — AN ACT CONCERNING HIGH DEDUCTIBLE HEALTH PLANS.

(5) "Qualified high deductible health plan" means a high deductible health plan (A) that imposes an annual deductible that is not less than LCO 4518 \\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-00902-R011 of 3 SB.docx Raised Bill No.

4518902 1 of 4 Raised Bill No.902 the minimum amount necessary for such plan to qualify as a high deductible health plan, and (B) regardless of whether such plan (i) is used to establish a medical savings account or an Archer MSA pursuant to Section 220 of the Internal Revenue Code, or a health savings account pursuant to Section 223 of the Internal Revenue Code, or (ii) caps annual out-of-pocket expenses in the amount specified by the Internal Revenue Service, or any successor agency, for high deductible health plans;

and (B) Provide deductions for the cost of all covered benefits that are LCO 4518 {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-00902 of 3 R01-SB.docx } Raised Bill No.

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Section 1 January 1, 2021 New section StatementINS Joint Favorable LCO 4518 {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-00902-3 of Purpose:3 R01-SB.docx }

To require certain high deductible health plans, to the maximum extent permitted by federal law, to:

(1) Apply annual deductibles on a calendar year basis;

(2) prorate annual deductibles to reflect (A) the portion of the calendar year during which coverage under such plans is effective, and (B) a deduction for payments made by individuals covered under such plans while such individuals were covered under other high deductible health plans during such year;

(3) provide LCO No.

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902 deductions for in-network and out-of-network covered benefits;

and (4) not apply (A) increased annual deductibles solely because such plans provide family coverage, or (B) annual deductibles that vary solely due to family size.

[Proposed deletions are enclosed in brackets.

Proposed additions are indicated by underline, except that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not underlined.] LCO No.

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