Bill Text: PA HB275 | 2013-2014 | Regular Session | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Providing for affordable health insurance.

Spectrum: Partisan Bill (Republican 25-0)

Status: (Introduced - Dead) 2013-01-23 - Referred to INSURANCE [HB275 Detail]

Download: Pennsylvania-2013-HB275-Introduced.html

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PRINTER'S NO.  287

 

THE GENERAL ASSEMBLY OF PENNSYLVANIA

 

HOUSE BILL

No.

275

Session of 2013

 

 

 

INTRODUCED BY BAKER, PICKETT, SAYLOR, MICOZZIE, GINGRICH, KAUFFMAN, MACKENZIE, EMRICK, STERN, AUMENT, M. K. KELLER, CUTLER, C. HARRIS, HICKERNELL, GROVE, SWANGER, DENLINGER, MILNE, BROOKS, BENNINGHOFF, MURT AND GABLER, JANUARY 23, 2013

 

 

REFERRED TO COMMITEE ON INSURANCE, JANUARY 23, 2013

 

 

 

AN ACT

 

Providing for affordable health insurance.

The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:

Section 1.  Short title.

This act shall be known and may be cited as the Affordable
Health Insurance Act.

Section 2.  No unfair trade practice.

Insurers that include and operate wellness and health
promotion programs, disease and condition management programs,
health risk appraisal programs and similar provisions in their
high deductible health policies in keeping with Federal
requirements shall not be considered to be engaging in unfair
trade practices under any provision of law relating to unfair
trade practices with respect to the practices of illegal
inducements, unfair discrimination and rebating.

Section 3.  No required relationship.

There shall be no required relationship between preferred
provider and nonpreferred provider plan reimbursements for
health savings account-eligible high deductible plans using
nonpreferred provider reimbursements. Such plans shall not:

(1)  unfairly deny health benefits for medically
necessary covered services;

(2)  have differences in benefit levels payable to
preferred providers compared to other providers that unfairly
deny benefits for covered services;

(3)  have a plan coinsurance percentage applicable to
benefit levels for services provided by nonpreferred
providers that is less than 60% of the benefit levels under
the policy for such services; or

(4)  have an adverse effect on the availability or the
quality of services.

Section 4.  Health reimbursement arrangement-only plans.

The following shall apply:

(1)  The Insurance Commissioner shall be authorized to
allow health reimbursement arrangement-only plans that
encourage employer financial support of health insurance or
health-related expenses recognized under Federal law.

(2)  Health reimbursement arrangement-only plans that are
not sold in connection with or packaged with health insurance
coverage shall not be considered insurance.

(3)  Individual health insurance policies funded through
health reimbursement arrangement-only plans shall not be
considered employer sponsored or group coverage, and nothing
in this section shall be interpreted to require an insurer to
offer an individual health insurance policy for sale in
connection with or packaged with a health reimbursement

arrangement-only plan or to accept premiums from health
reimbursement arrangement-only plans for individual health
insurance policies.

Section 5.  Deductions.

In addition to other deductions allowed by law, a taxpayer in
this Commonwealth may deduct from taxable income for State
income tax purposes an amount equal to 100% of the premium paid
by the taxpayer during the taxable year for high deductible
health plans which are eligible to be used with a health savings
account under the applicable provisions of section 223 of the
Internal Revenue Code of 1986 (Public Law 99-514, 26 U.S.C. §
223) to the extent the deduction has not been included in
Federal adjusted gross income and the expenses have neither been
provided from a health reimbursement arrangement nor included in
itemized nonbusiness deductions excluded from the taxpayer's
taxable income.

Section 6.  Credits.

(a)  Qualified health credits.--The following shall apply:

(1)  A taxpayer shall be allowed a credit against the
income tax imposed by law for qualified health insurance
expenses in an amount of $250 for each employee enrolled for
12 consecutive months in a qualified health insurance plan if
qualified health insurance is made available to all of the
employees and compensated individuals of the employer under
the applicable provisions of section 125 of the Internal
Revenue Code of 1986 (Public Law 99-514, 26 U.S.C. § 125).

(2)  In no event shall the total amount of the tax credit
under this section for a taxable year exceed the taxpayer's
income tax liability. Any unused tax credit shall be allowed
the taxpayer against succeeding years' tax liability. No such

credit shall be allowed the taxpayer against prior years' tax
liability.

(3)  The Department of Revenue shall promulgate rules and
regulations necessary to implement and administer this
section.

(4)  The credit allowed by this section shall apply only
with regard to qualified health insurance expenses.

(b)  Definitions.--As used in this section, the following
words and phrases shall have the meanings given to them in this
subsection unless the context clearly indicates otherwise:

"Qualified health insurance."  A high deductible health plan
that includes, at a minimum, catastrophic health care coverage
which is eligible to be used with a health savings account under
the applicable provisions of section 223 of the Internal Revenue
Code of 1986 (Public Law 99-514, 26 U.S.C. § 223).

"Qualified health insurance expense."  The expenditure of
funds of at least $250 annually for health insurance premiums
for qualified health insurance.

"Taxpayer."  An employer who employs directly, or who pays
compensation to individuals whose compensation is reported on
Internal Revenue Service Form 1099, 50 or fewer persons and for
whom the employer provides high deductible health plans, that
include catastrophic health care coverage, which are established
and used with a health savings account under the applicable
provisions of section 223 of the Internal Revenue Code of 1986
(Public Law 99-514, 26 U.S.C. § 223) and in which the employees
are enrolled.

Section 7.  Exemption from insurance premium tax.

Insurers shall be exempt from otherwise applicable taxes on
insurance premiums paid by residents for high deductible health

plans eligible to be used with a health savings account under
the applicable provisions of section 223 of the Internal Revenue
Code of 1986 (Public Law 99-514, 26 U.S.C. § 223).

Section 8.  Duties of Insurance Commissioner.

The Insurance Commissioner shall:

(1)  Develop flexible guidelines for coverage and
approval of health savings account eligible high deductible
plans designed to qualify under Federal and State
requirements as high deductible health plans for use with
health savings accounts.

(2)  Encourage and promote the marketing of health
savings account eligible high deductible plans by accident
and sickness insurers. Nothing in this section shall be
construed to authorize the sale of insurance in violation of
requirements relating to the transaction of insurance or
prohibiting the interstate sale of insurance.

(3)  Conduct a study of health savings account eligible
high deductible plans available in all other states and
determine whether, and in what manner, they serve the
uninsured and whether they should be made available to the
citizens of this Commonwealth.

(4)  Develop an automatic or fast track approval process
for health savings account eligible high deductible plans
already approved under the laws and regulations of this
Commonwealth or other states.

(5)  Promulgate rules and regulations for the design,
promotion and regulation of health savings account eligible
high deductible plans, including rules and regulations for
expedited review of standardized policies, advertisements,
solicitations and other matters deemed relevant.

Section 9.  Effective date.

This act shall take effect in 60 days.