5304-2S AMS MCDO S1565.5

2SSB 5304 - S AMD  000167

By Senator McDonald

                             NOT ADOPTED 3/12/93 - ROLL CALL 23-24

    On page 26, after line 22, insert the following:

    "NEW SECTION. Sec. 222.  A new section is added to Title 28A RCW to read as follows:

    (1) All persons covered under this chapter shall have a choice of purchasing an employee benefit plan or a medical care savings account.

    (2)(a) The public school shall purchase a major medical policy equal in amount to the total amount currently paid for the employee's benefit plan and direct deposit the remaining funds into the employee's medical care savings account created by the state.  These funds must be used by the employee for the sole purpose of health care expenditures.  The major medical policy shall have a three thousand dollar deductible, which shall increase by the federal medical inflation price index published by the health care financing administration.  At the beginning of each calendar year, the public school shall renew the major medical policy and direct deposit the remaining funds into the employee's medical care savings account.  When more than fifty percent of all employees are participating in the medical care savings account, the public school will recommend methods to increase future participation in medical care savings accounts, up to one hundred percent.  When federal laws permit, the individual may deposit remaining funds from the medical care savings account into the individual's federal tax-exempt individual retirement account.

    (b) For the purposes of this subsection "medical care savings account" means a trust created or organized in the United States for the exclusive health care benefit of an individual, the individual's spouse, or the individual's dependents.

    (c) The qualified differential premium differential amount for an employee is equal to:

    (i) The premium differential amount realized by the employer in the plan year in which the employee elects coverage under a qualified higher deductible health plan; and

    (ii) For each subsequent plan year during which such election remains in effect, the amount determined increased by an amount equal to:

    (A) Such a dollar amount, multiplied by,

    (B) The federal medical inflation price index as published by the health care financing administration for the calendar year in which the plan year begins, by substituting the calendar year in which the plan year began.

    (3) Participants who purchase a medical care savings account under this section are not required to purchase an employee benefit plan."

2SSB 5304 - S AMD

By Senator McDonald

    On page 1, line 12 of the title, after "74.09 RCW;" insert "adding a new section to Title 28A RCW;"

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