HB422: HB422 State employees' health insurance; include high deductible health plans

Georgia's state employee health insurance program currently is not required to offer high deductible health plans paired with health savings accounts. House Bill 422 changes that by adding a new section to state law governing employee insurance and benefits (O.C.G.A. Chapter 18 of Title 45). The State Health Benefit Plan board must make sure at least two high deductible health plans, from different insurers with affiliated health savings account custodians, are offered by January 1, 2028, as long as the bids are cost neutral. By January 1, 2026, covered state employees enrolled in a high deductible plan must be able to make pretax payroll contributions to a health savings account. The State Accounting Office and state agency heads are authorized to make those payroll deductions. Other government employers, such as local school boards, are encouraged but not required to offer the same option to their employees.

• Requires the State Health Benefit Plan board to include at least two high deductible health plans from different insurers by January 1, 2028, provided bids are cost neutral.
• Requires that by January 1, 2026, covered state employees enrolled in a high deductible plan can make pretax payroll contributions to a health savings account (a tax-advantaged medical savings account tied to high deductible insurance).
• Authorizes the State Accounting Office and heads of state agencies to deduct employee-designated amounts from pay for health savings account contributions.
• Encourages, without requiring, other government employers such as local school boards to give their employees enrolled in high deductible plans the same pretax contribution option.
• Defines 'covered employee' and 'high deductible health plan' by referencing existing state and federal definitions (O.C.G.A. § 45-18-1 and Section 223 of the federal Internal Revenue Code).

State employees covered by Georgia's state health insurance plan, the State Health Benefit Plan board that administers it, the State Accounting Office and state agency heads who process payroll, and other government employers such as local school boards whose employees are in the same insurance plan.

State employees who choose a high deductible health plan would gain a payroll-based way to save pretax money for medical expenses through a health savings account, potentially lowering their taxable income and out-of-pocket costs, while agencies must adjust payroll systems to handle these deductions.

• Adds new Code Section 45-18-3.1 to Chapter 18 of Title 45, covering employees' insurance and benefits plans.
• Subsection (b) requires at least two high deductible health plans from different insurers with affiliated health savings account custodians by January 1, 2028, contingent on cost-neutral bids.
• Subsection (c) requires that by January 1, 2026, covered employees enrolled in a qualifying high deductible plan can make pretax payroll contributions to a health savings account.
• Subsection (d) authorizes the State Accounting Office or state agency heads to deduct employee-designated contribution amounts from pay.
• Subsection (e) encourages, but does not require, other government entities like local boards of education to offer the same pretax contribution option to their employees.
• Section 2 repeals any conflicting laws.

1. 2025-05-14Effective Date 2025-07-01
2. 2025-05-14Act 267
3. 2025-05-14House Date Signed by Governor (House)
4. 2025-04-09House Sent to Governor (House)
5. 2025-04-04House Agreed Senate Amend or Sub (House)
6. 2025-04-04Senate Passed/Adopted By Substitute (Senate)
7. 2025-04-04Senate Third Read (Senate)
8. 2025-04-04Senate Taken from Table (Senate)

• Derrick McCollum (R, HD-030)Primary sponsor
• Jan Jones (R, HD-047)
• James Burchett (R, HD-176)
• Bruce Williamson (R, HD-112)
• Shaw Blackmon (R, HD-146)
• Brad Thomas (R, HD-021)
• Jason Esteves (D, SD-035)

1. PassedHouse voteFebruary 28, 2025

   163 yea, 0 nay (7 not voting, 10 absent)

   Passage: House Vote #119

2. PassedHouse voteApril 4, 2025

   163 yea, 0 nay (4 not voting, 13 absent)

   Agree To Senate Substitute: House Vote #450

3. PassedSenate voteApril 4, 2025

   52 yea, 1 nay (1 not voting, 2 absent)

   Passage By Substitute: Senate Vote #461

• state employee benefits
• health insurance
• health savings accounts
• payroll deductions
• public employees