08 LC 37
0690S/AP
House
Bill 977 (AS PASSED HOUSE AND SENATE)
By:
Representatives Knox of the
24th,
Keen of the
179th,
and Channell of the
116th
A
BILL TO BE ENTITLED
AN ACT
AN ACT
To
amend Title 33 of the Official Code of Georgia Annotated, relating to insurance,
so as to provide for legislative intent; to provide an exemption from insurance
premium taxes for certain insurance products; to provide for the Commissioner of
Insurance to adopt policies to promote, approve, and encourage health savings
account eligible high deductible plans in Georgia; to provide for exemptions
from certain unfair trade practices for certain wellness and health promotion
programs, condition or disease management programs, health risk appraisal
programs, and similar provisions in such plans; to provide for certain
requirements for such plans; to provide for health reimbursement arrangement
only plans that encourage employer financial support of health insurance or
health related expenses under certain circumstances; to amend Chapter 7 of Title
48 of the Official Code of Georgia Annotated, relating to income taxes, so as to
provide for an income tax deduction for high deductible health plans established
and used with a health savings account; to provide for an income tax credit for
certain employers who provide high deductible health plans established and used
with a health savings account; to provide for procedures, conditions, and
limitations; to provide for powers, duties, and authority of the state revenue
commissioner with respect to the foregoing; to provide for related matters; to
provide for applicability and effective dates; to repeal conflicting laws; and
for other purposes.
BE
IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:
SECTION
1.
Title
33 of the Official Code of Georgia Annotated, relating to insurance, is amended
by adding a new subsection (c) in Code Section 33-8-4, relating to amount and
method of computing tax on insurance premiums generally, to read as
follows:
"(c)
Insurers shall be exempt from otherwise applicable state premium taxes as
provided for in subsection (a) of this Code section on premiums paid by Georgia
residents for high deductible health plans sold or maintained in connection with
a health savings account under the applicable provisions of Section 223 of the
Internal Revenue Code."
SECTION
2.
Said
title is further amended by adding a new subsection (a.1) in Code Section
33-8-8.2, relating to amount and method of computing local insurance premium
taxes on insurance companies other than life insurance companies, to read as
follows:
"(a.1)
Insurers shall be exempt from otherwise applicable local premium taxes as
provided for in subsection (a) of this Code section on premiums paid by Georgia
residents for high deductible health plans sold or maintained in connection with
a health savings account under the applicable provisions of Section 223 of the
Internal Revenue Code."
SECTION
3.
Said
title is further amended by striking Chapter 51 in its entirety and inserting in
lieu thereof a new Chapter 51 to read as follows:
"CHAPTER
51
33-51-1.
This
chapter shall be known and may be cited as the 'Georgia Affordable HSA Eligible
High Deductible Health Plan.'
33-51-2.
It
is the intent of the General Assembly:
(1)
To authorize the Commissioner to establish flexible guidelines for health
savings account eligible high deductible plan designs which will be affordable
to Georgians and to increase the availability of these types of plans by
accident and sickness insurers licensed to transact such insurance in this
state;
(2)
To encourage the offering of affordable health savings account eligible high
deductible plans, as required under the rules of the federal Internal Revenue
Service related to the establishment of health savings accounts, with the
specific intent of reaching many otherwise uninsured Georgians and the general
intent of creating affordable comprehensive health insurance for all Georgians;
and
(3)
To enhance the affordability of insurance with the flexible health savings
account eligible high deductible plans allowed under this chapter by allowing
rewards and incentives for participation in and adherence to health behaviors
that recognize the value of the personal responsibility of each citizen to
maintain good health, seek preventative care services, and comply with approved
treatments.
33-51-3.
(a)
The Commissioner shall develop flexible guidelines for coverage and approval of
health savings account eligible high deductible plans which are designed to
qualify under federal and state requirements as high deductible health plans for
use with health savings accounts which comply with federal requirements under
the applicable provisions of the federal Internal Revenue Code for high
deductible health plans sold in connection with health savings
accounts.
(b)
The Commissioner shall be authorized to encourage and promote the marketing of
health savings account eligible high deductible plans by accident and sickness
insurers in this state; provided, however, that nothing in this Code section
shall be construed to authorize the sale of insurance in violation of Chapter 3
of this title or interstate sales of insurance.
(c)
The Commissioner shall be authorized to conduct a national study of health
savings account eligible high deductible plans available in other states and to
determine if and how these products serve the uninsured and if they should be
made available to Georgians.
(d)
The Commissioner shall be authorized to 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 state or other
states.
(e)
The Commissioner shall be authorized to promulgate such rules and regulations as
he or she deems necessary and appropriate for the design, promotion, and
regulation of health savings account eligible high deductible plans, including
rules and regulations for the expedited review of standardized policies,
advertisements and solicitations, and other matters deemed relevant by the
Commissioner.
33-51-4.
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 Code Section 33-6-4 with respect to references to the practices of illegal
inducements, unfair discrimination, and rebating.
33-51-5.
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, however, 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 percent of the benefit
levels under the policy for such services; or
(4)
Have an adverse effect on the availability or the quality of
services.
33-51-6.
Notwithstanding
the provisions of paragraphs (2) and (3) of Code Section 33-51-5, health benefit
plans providing incentives for covered persons to use pharmaceutical or dental
services of preferred providers shall provide, and clearly indicate, that the
payment or reimbursement for a noncontracting provider of covered pharmaceutical
or dental services shall be the same as the payment or reimbursement for a
preferred provider of covered pharmaceutical or dental services; provided,
however, that the health benefit plan shall not be required to make payment or
reimbursement in an amount which is greater than the actual fee charged by the
provider for such dental or pharmaceutical services."
SECTION
4.
Title
48 of the Official Code of Georgia Annotated, relating to revenue and taxation,
is amended by adding a new paragraph in subsection (a) of Code Section 48-7-27,
relating to computation of taxable net income, to read as follows:
"(13.1)
An amount equal to 100 percent of the premium paid by the taxpayer during the
taxable year for high deductible health plans established and used with a health
savings account under the applicable provisions of Section 223 of the Internal
Revenue Code to the extent the deduction has not been included in federal
adjusted gross income, as defined under the Internal Revenue Code of 1986, and
the expenses have not been provided from a health reimbursement arrangement and
have not been included in itemized nonbusiness deductions;"
SECTION
5.
Said
title is further amended by adding a new Code section to read as
follows:
"48-7-29.13.
(a)
As used in this Code section, the term:
(1)
'Qualified health insurance' means a high deductible health plan that includes,
at a minimum, catastrophic health care coverage which is established and used
with a health savings account under the applicable provisions of Section 223 of
the Internal Revenue Code.
(2)
'Qualified health insurance expense' means the expenditure of funds of at least
$250.00 annually for health insurance premiums for qualified health insurance.
(3)
'Taxpayer' means an employer who employs directly, or who pays compensation to
individuals whose compensation is reported on Form 1099, 50 or fewer persons and
for whom the taxpayer provides high deductible health plans that include, at a
minimum, 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 and in which such employees are enrolled.
(b)
A taxpayer shall be allowed a credit against the tax imposed by Code Section
48-7-20 or 48-7-21, as applicable, for qualified health insurance expenses in an
amount of $250.00 for each employee enrolled for twelve consecutive months in a
qualified health insurance plan if such qualified health insurance is made
available to all of the employees and compensated individuals of the employer
pursuant to the applicable provisions of Section 125 of the Internal Revenue
Code.
(c)
In no event shall the total amount of the tax credit under this Code 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.
(d)
The commissioner shall be authorized to promulgate any rules and regulations
necessary to implement and administer the provisions of this Code
section.
(e)
The credit allowed by this Code section shall apply only with regard to
qualified health insurance expenses."
SECTION
6.
(a)
Sections 1, 4, and 5 of this Act shall become effective on January 1, 2009, and
shall be applicable to all taxable years beginning on or after January 1, 2009.
The remaining sections of this Act shall become effective upon its approval by
the Governor or upon its becoming law without such
approval.
(b) Section 2 of this Act shall expire on January 1, 2015, unless the General Assembly acts to extend these provisions.
(b) Section 2 of this Act shall expire on January 1, 2015, unless the General Assembly acts to extend these provisions.
SECTION
7.
All
laws and parts of laws in conflict with this Act are repealed.