SENATE FLOOR SUBSTITUTE FOR

SENATE BILL 407

48th legislature - STATE OF NEW MEXICO - second session, 2008

AN ACT

RELATING TO HEALTH INSURANCE; PROVIDING A HEALTH COVERAGE OPTION OF A HIGH-DEDUCTIBLE POLICY WITH A HEALTH SAVINGS ACCOUNT; REQUIRING RULEMAKING AND RECOMMENDATIONS FROM THE INSURANCE DIVISION.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

     Section 1. A new section of the New Mexico Insurance Code is enacted to read:

     "[NEW MATERIAL] HIGH-DEDUCTIBLE HEALTH PLANS--HEALTH SAVINGS ACCOUNTS.--

          A. Beginning July 1, 2009, health insurers may offer to persons requesting health insurance coverage the option of a health-savings-account-qualified high-deductible health plan, with an annual coverage deductible of at least two thousand five hundred dollars ($2,500), in conjunction with the person's creation of a health savings account in compliance with the federal Internal Revenue Code of 1986 and regulations promulgated pursuant to that code by the federal internal revenue service.

          B. Notwithstanding any other provision of law, a health-savings-plan-qualified high-deductible health plan as provided in Subsection A of this section shall qualify as creditable coverage under the Insurance Code and shall meet any health coverage requirements pursuant to law or rule.

          C. The insurance division shall:

                (1) promulgate rules for the administration and implementation of this section; and

                (2) prior to October 1, 2008, recommend to the interim legislative health and human services committee measures, including legislation, to encourage the use of health-savings-account-qualified high-deductible health plans as provided in Subsection A of this section."

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