HB1434: repealing premium contribution requirements for certain state and judicial retirees.

HB 1434-FN - AS INTRODUCED

2020 SESSION

20-2328

10/03

HOUSE BILL 1434-FN

AN ACT repealing premium contribution requirements for certain state and judicial retirees.

SPONSORS: Rep. Schuett, Merr. 20; Rep. Desjardin, Hills. 13; Rep. Doherty, Merr. 20; Rep. M. Pearson, Rock. 34

COMMITTEE: Executive Departments and Administration

ANALYSIS

This bill repeals the requirements for retired state employees and judicial retirees who are medicare-eligible to pay premium contributions for the state retiree health plan.

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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

20-2328

10/03

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Twenty

AN ACT repealing premium contribution requirements for certain state and judicial retirees.

Be it Enacted by the Senate and House of Representatives in General Court convened:

1 Repeals; Provisions Requiring Premium Contributions for State, Local, and Judicial Retirees who are Eligible for Medicare Parts A and B. The following are repealed:

I. RSA 100-A:54, III(b), relative to premium contributions for retired state employees in the retirement system.

II. RSA 21-I:30, XIII(b), relative to premium contributions for retired state employees not in the retirement system.

III. RSA 100-C:11-a, II, relative to premium contributions for judicial retirement plan retirees.

IV. 2017, 156:10, I, relative to the 10 percent premium contribution.

2 Effective Date. This act shall take effect 60 days after its passage.

LBAO

20-2328

Revised 1/15/20

HB 1434-FN- FISCAL NOTE

AS INTRODUCED

AN ACT repealing premium contribution requirements for certain state and judicial retirees.

FISCAL IMPACT: [ X ] State [ ] County [ ] Local [ ] None

Estimated Increase / (Decrease)

STATE:

FY 2020

FY 2021

FY 2022

FY 2023

Appropriation

$0

$0

$0

$0

Revenue

($1,318,400)

($1,521,100)

($1,762,000)

($2,031,000)

Expenditures

$0

$0

$0

$0

Funding Source:

[ X ] General [ X ] Education [ X ] Highway [ X ] Other

METHODOLOGY:

This bill repeals the premium contributions for state local and judicial retirees who are eligible for Medicare Parts A and B. The Department of Administrative Services (DAS) states that approximately 3,500 Medicare eligible retirees/spouses are required to pay 10% of the monthly premium (working rate) or $32.04 per month in FY 2020, based on the number of Medicare retirees and spouses with a date of birth on or after January 1, 1949. DAS used budgeted rates to calculate the loss of these funds for FY 2020 and FY 2021. DAS projected increases in premium rates and enrollments to compile the estimated loss of these funds for FY 2022 and FY 2023. DAS states the Retiree Health Benefit Plan is required to administer the Plan within the funds appropriated. Elimination of the Medicare eligible retiree premium contribution as a source of funding the plan would require plan design changes which would increase the cost of health care for those using the Plan. Examples of such changes may include increases in pharmacy co-payments or prescription drug deductibles for all retirees. Repealing these provisions will also increase other post-employment benefits liability to the State, required to be reported per Governmental Accounting Standards Board guidelines.

The New Hampshire Retirement System indicates it will cost approximately $2,500 to make the necessary software changes to implement this bill.

AGENCIES CONTACTED:

Department of Administrative Services and New Hampshire Retirement System