40-2261. Employer providing certain health insurance coverage may offer cafeteria plan; employer not restricted in providing such benefits or coverage; definitions.
40-2261
40-2261. Employer providing certain health insurancecoverage may offer cafeteria plan; employer not restricted in providing suchbenefits or coverage; definitions.(a) An employer that provides health insurance coverage for which any portionof the premium is payable by an employee may also offer a premium onlycafeteria plan as permitted under 26 U.S.C. Section 125. The provisions of thissubsection shall not apply o any employer who offers health insurance throughany self-insured or self-funded group health benefit plan of any type ordescription.
(b) No provision of this section shall prohibit or otherwise restrict anemployer's ability toeither provide a group health benefit plan or create a premium only cafeteriaplan with definedcontributions and in which the employee purchases the policy.
(c) For the purposes of this section:
(1) "Health benefit plan" means any hospital or medical expense policy,health, hospital or medical service corporation contract and a plan provided bya municipal group-funded pool or a health maintenance organization contractoffered by an employer or any certificate issued under any such policies,contracts or plans. Health benefit plan also includes a cafeteria planauthorized by 26 U.S.C. Section 125. The cafeteria plan may offer the option ofpaying all or any portion of the health insurance premium or the option ofreceiving health insurance coverage through a high deductible health plan andthe establishment of a health savings account. In order for an eligibleindividual to obtain a high deductible health plan through the cafeteria plan,such individual shall present evidence to the employer that such individual hasestablished a health savings account in compliance with 26 U.S.C. Section 223and any amendments and regulations. "Health benefit plan" does not includepolicies or certificates covering only accident, credit, dental, disabilityincome, long-term care, hospital indemnity, medicare supplement, specifieddisease, vision care, coverage issued as a supplement to liability insurance,insurance arising out of a workers compensation or similar law, automobilemedical-payment insurance or insurance under which benefits are payable with orwithout regard to fault and which is statutorily required to be contained inany liability insurance policy or equivalent self-insurance.
(2) "Health savings account" shall have the same meaning ascribed to it as insubsection (d) of 26 U.S.C. Section 223.
(3) "High deductible health plan" shall mean a policy or contract of healthinsurance or health care plan that meets the criteria established in subsection(c) of 26 U.S.C. Section 223 and anyamendments and regulations.
(d) The provisions of this section shall not take effect until July 1, 2008.
History: L. 2008, ch. 164, § 2; May 29.