HB246 Summary

• Authorizes the State Employees' Insurance Board to offer a High Deductible Health Plan (HDHP) with a federally qualified Health Savings Account (HSA) to eligible active and retired state employees and their dependents.

• Excludes retired state employees eligible for or entitled to Medicare benefits from participating in the HDHP-HSA program.

• Allows the State Employees' Insurance Board to make employer contributions to participants' HSAs and HRAs in amounts determined by the Board, which do not constitute employee compensation.

• Permits state employees to voluntarily deposit their own funds into HSAs through salary reduction agreements, with reduced amounts continuing to count as earnable compensation for retirement benefits.

• Authorizes the State Employees' Insurance Board to offer Health Reimbursement Arrangements (HRA) to eligible active and retired state employees and their dependents, with terms and conditions established by the Board in accordance with federal requirements.