SB127 Summary

• Authorizes the State Employees' Insurance Board to offer a High Deductible Health Plan with a federally qualified Health Savings Account (HDHP-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 plan.

• Permits the State Employees' Insurance Board to make employer contributions to participants' HSAs and HRAs in amounts determined by the board, with employees able to make voluntary salary reduction contributions.

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

• Specifies that employer contributions to HSAs and HRAs do not constitute employee compensation for purposes of salary limitations or retirement benefit calculations, but salary reductions remain included as earnable compensation for retirement benefits.