Public Employees' Retirement System: Board of Administration: health benefits.

Existing law creates the Public Employees' Medical and Hospital Care Act, which is administered by the Board of Administration of the Public Employees' Retirement System, which is granted all powers reasonably necessary to carry its responsibilities granted pursuant to the act. Existing law authorizes the board to contract with carriers for health benefit plans or with entities that provide services relating to the administration of these plans. Existing state and federal income tax laws allow a deduction for contributions to a qualifying medical savings account by a taxpayer who is covered under a high deductible health plan, as defined. Money within this type of account may be used to pay for qualified medical expenses, as defined. This bill would require the board to establish a wellness program for state employees and annuitants that is consistent with the requirements of the federal Patient Protection and Affordable Care Act. The bill would require the program to provide financial incentives for participation. The bill would require the program to include both provisions that require an individual to meet a standard related to a health factor to receive an incentive and provisions that only require participation. This bill would also, on and after January 1, 2014, require the Board of Administration of the Public Employees' Retirement System to offer a high deductible health plan, as defined in the federal tax law, and a health savings account option to public employees and annuitants, as specified. The bill would establish the Public Employees' Health Savings Fund, a continuously appropriated fund within the State Treasury, for payment of qualified medical expenses of employees and annuitants who elect to enroll in the high deductible health plan and participate in the health savings account option, and would require those employees and annuitants, and their employers, to make specified contributions to that fund, thereby making an appropriation.