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House rejects high-deductible health option for state employees after extended debate on adverse selection
Summary
House Bill 334, proposing a high-deductible option with a health-reimbursement arrangement for state employees, failed 28-37 after extensive floor debate that centered on adverse-selection risks, fiscal mechanics, and whether PEHP could implement the plan without statute.
The Utah House debated and ultimately rejected House Bill 334 on Feb. 23, a proposal to add to the Public Employees Health Plan (PEHP) an option that would pair a high-deductible insurance plan with a health reimbursement arrangement funded in part by employer contributions.
Sponsor Representative Eric Hutchings described the proposal as an additional option for employees that could allow disciplined workers to accumulate funds for future medical needs. "What my bill does, it allows an…
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