HB 596-FN-LOCAL - AS INTRODUCED
2015 SESSION
15-0260
01/10
HOUSE BILL 596-FN-LOCAL
AN ACT relative to health insurance plans of public employers.
SPONSORS: Rep. Murphy, Hills 7; Rep. Itse, Rock 10; Rep. Beaudoin, Straf 9; Rep. Abramson, Rock 20
COMMITTEE: Commerce and Consumer Affairs
This bill declares that the state, or any political subdivision of the state, shall not offer its employees any health care plan subject to the excise tax under the Patient Protection and Affordable Care Act unless the extra expense arising from such tax is borne by the plan participants.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
15-0260
01/10
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Fifteen
AN ACT relative to health insurance plans of public employers.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 New Section; Employee Health Insurance. Amend RSA 21-I by inserting after section 26 the following new section:
21-I:26-a Excise Tax; Patient Protection and Affordable Care Act. The state, or any political subdivision of the state, shall not provide any health insurance plan to its employees subject to the excise tax on high cost employer-sponsored health coverage under the Patient Protection and Affordable Care act of 2009, Public Law 111-148, as amended, unless the expenses associated with such tax is borne by the plan participants. The expenses arising from the excise tax shall not be transferred to the public.
2 Applicability. Section 1 of this act shall not apply to any health insurance plan in effect on the effective date of this act.
3 Effective Date. This act shall take effect 60 days after its passage.
LBAO
15-0260
Revised 02/03/15
HB 596-FN-LOCAL FISCAL NOTE
AN ACT relative to health insurance plans of public employers.
FISCAL IMPACT:
The Department of Administrative Services and the New Hampshire Municipal Association state this bill, as introduced, will have an indeterminable impact on state, county, and local revenue and expenditures in FY 2016 and each year thereafter.
METHODOLOGY:
The Department of Administrative Services states this bill prohibits public employers from offering employees any health care plan subject to the excise under the federal Patient Protection and Affordable Care Act, unless the employee pays the cost arising from such tax. The Department states the bill’s fiscal impact is indeterminable, and notes that current RSA 273-A:3 requires public employers to collectively bargain with a certified employee organization. The Department notes that should the terms of the bill take effect while the current collective bargaining agreements are in place, the result will be a violation of those agreements. In addition, the Department states that any future requirements related to employees paying the cost of the excise tax will need to be collectively bargained. The federal excise tax is scheduled to take effect in calendar year 2018.
The New Hampshire Municipal Association states that to the extent this bill invalidates existing contractual obligations to provide employee health plans, it may be unenforceable and will have no fiscal impact. To the extent the bill prohibits the provision of such plans in the future, the fiscal impact on municipal expenditures in indeterminable. An impact on municipal revenues would occur only if employees were required to reimburse employers for the cost of the excise tax.
The New Hampshire Association of Counties states this bill will have an indeterminable impact on county expenditures. An impact on county revenues would occur only if employees were required to reimburse employers for the cost of the excise tax.