--- title: HB 422. State employees' health insurance; include high deductible health plans collection: bills id: 2025-2026/hb422 cite_as: HB 422, 2025-2026 Regular Session (Ga.) canonical_url: https://georgiacommons.org/bills/2025-2026/hb422 md_url: https://georgiacommons.org/bills/2025-2026/hb422.md text_url: https://georgiacommons.org/bills/2025-2026/hb422/text source_url: https://www.legis.ga.gov/legislation/70267 date: 2025-05-14 status: passed corpus_version: bills-2026-08-28 license: Public record of the Georgia General Assembly, via LegiScan; see about.md publisher: Georgia Commons, an independent project of Georgia Civic Data. Not the State of Georgia. Not legal advice. up: https://georgiacommons.org/bills/2025-2026.md previous: https://georgiacommons.org/bills/2025-2026/hb421.md next: https://georgiacommons.org/bills/2025-2026/hb423.md index: https://georgiacommons.org/bills/index.md omitted: votes and history omitted_chars: 1284 omitted_url: https://georgiacommons.org/bills/2025-2026/hb422.md?full=1 bill_number: HB 422 session: 2025-2026 Regular Session session_slug: 2025-2026 chamber: House bill_type: bill status_date: 2025-05-14 last_action: Effective Date 2025-07-01 sponsors: - Derrick McCollum - Jan Jones - James Burchett - Bruce Williamson - Shaw Blackmon - Brad Thomas - Jason Esteves text_version: Enrolled has_text: true legiscan_url: https://legiscan.com/GA/bill/HB422/2025 upstream_id: 1968129 summaries_model: claude-sonnet-5 topic_tags: - state employee benefits - health insurance - health savings accounts - payroll deductions - public employees --- # HB 422. State employees' health insurance; include high deductible health plans ## Text 25 HB 422/AP House Bill 422 (AS PASSED HOUSE AND SENATE) By: Representatives McCollum of the 30 th, Jones of the 47 th, Burchett of the 176 th, Williamson of the 112th, Blackmon of the 146th, and others A BILL TO BE ENTITLED AN ACT To amend Chapter 18 of Title 45 of the Official Code of Georgia Annotated, relating to1 employees' insurance and benefits plans, so as to require that the state employees' health2 insurance plan include high deductible health plans; to provide for certain employees3 enrolled in such high deductible health plans to have the ability to make pretax contributions4 to health savings accounts through deductions from the salary, wages, or other compensation5 payable to such employees; to authorize deductions from the sal ary, wages, or other6 compensation of such employees for such accounts; to encourage other governmental entities7 that employ other employees enrolled in such high deductible health plans to provide such8 other employees the ability to make pretax contributions to health savings accounts through9 deductions from the salary, wages, or other compensation payable to such other employees;10 to provide for related matters; to repeal conflicting laws; and for other purposes.11 BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:12 SECTION 1.13 Chapter 18 of Title 45 of the Official Code of Georgia Annotate d, relating to employees'14 insurance and benefits plans, is amended by adding a new Code section to read as follows:15 H. B. 422 - 1 - 25 HB 422/AP "45-18-3.1.16 (a) As used in this Code section, the term:17 (1) 'Covered employee' means an individual described in subpar agraph (A) or (D) of18 paragraph (2) of Code Section 45-18-1.19 (2) 'High deductible health plan' shall have the meaning as set forth in Section 223 of the20 United States Internal Revenue Code.21 (b) On or before January 1, 2028, the board shall ensure that at least two high deductible22 health plans are included in the health insurance plan or plans established under this part23 that are offered by different insurance providers that each have an affiliated custodian for24 health savings accounts authorized under Section 223 of the United States Internal Revenue25 Code, provided that any bid proposals accepted by the board for such high deductible26 health plans are cost neutral.27 (c) On or before January 1, 2026, the board shall ensure that each covered employee who28 is enrolled in a high deductible health plan that is included in the health insurance plan or29 plans established under this part has the ability to make preta x contributions, through30 deductions from the salary, wages, or other compensation payabl e to such covered31 employee, to a health savings account, as authorized under Section 223 of the United States32 Internal Revenue Code, that is maintained by a custodian affili ated with the health33 insurance provider that offers such high deductible health plan.34 (d) The State Accounting Office or the head of any state governmental entity that employs35 a covered employee who is enrolled in a high deductible health plan included in the health36 insurance plan or plans established under this part shall be authorized to deduct or reduce37 from the salary, wages, or other compensation payable to such covered employee amounts38 voluntarily designated by such covered employee for the purpose of making contributions39 to a health savings account, as authorized under Section 223 of the United States Internal40 Revenue Code.41 H. B. 422 - 2 - 25 HB 422/AP (e) Any governmental entity that employs individuals who do not meet the definition of42 a covered employee as provided in subsection (a) of this Code section but who are included43 in the health insurance plan or plans established under this part, including, but not limited44 to, any local board of education, is encouraged to ensure that any such individuals who are45 enrolled in a high deductible health plan included in the healt h insurance plan or plans46 established under this part can make pretax contributions, thro ugh deductions from the47 salary, wages, or other compensation payable to such individual s, to a health savings48 account, as authorized under Section 223 of the United States Internal Revenue Code."49 SECTION 2.50 All laws and parts of laws in conflict with this Act are repealed.51 H. B. 422 - 3 - ## Summaries written by Georgia Commons The following was written by claude-sonnet-5 from the text above and is not part of the bill. Quote the text, not the summary. House Bill 422 would require Georgia's state employee health insurance plan to offer high deductible health plans and let covered employees make pretax payroll contributions to health savings accounts. ### Plain-language summary 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. ### What it does - 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. ยง 45-18-1 and Section 223 of the federal Internal Revenue Code). ### Who it affects 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. ### Why it matters 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. ### Key provisions - 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. ## Status - Status: Passed (2025-05-14) - Last action: Effective Date 2025-07-01 (2025-05-14) - Sponsors: Derrick McCollum, Jan Jones, James Burchett, Bruce Williamson, Shaw Blackmon, Brad Thomas, Jason Esteves - Official page: https://www.legis.ga.gov/legislation/70267 > The history, votes, and amendments (1,284 characters) are at https://georgiacommons.org/bills/2025-2026/hb422.md?full=1