Senate Bill 2684

AN ACT TO CREATE THE MISSISSIPPI FAIR SHARE HEALTH CARE ACT; TO DEFINE CERTAIN TERMS; TO PROVIDE THAT CERTAIN EMPLOYERS THAT DO NOT SPEND AT LEAST 8% OF THE TOTAL WAGES PAID TO ITS EMPLOYEES IN THIS STATE ON HEALTH INSURANCE COSTS SHALL PAY TO THE DIVISION OF MEDICAID, OFFICE OF THE GOVERNOR, AN AMOUNT EQUAL TO THE DIFFERENCE BETWEEN WHAT THE EMPLOYER SPENDS FOR HEALTH INSURANCE COSTS AND AN AMOUNT EQUAL TO 8% OF THE TOTAL WAGES PAID TO ITS EMPLOYEES IN THIS STATE; TO PROVIDE A CIVIL PENALTY FOR FAILING TO MAKE THE REQUIRED PAYMENT; AND FOR RELATED PURPOSES.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:

SECTION 1. This act shall be known and may be cited as the "Mississippi Fair Share Health Care Act."

SECTION 2. The following words shall have the ascribed meanings unless the context clearly indicates otherwise:

(a) "Employee" means all individuals employed full time or part time directly by an employer.

(b) "Employer" means any person, institution, organization or other entity that pays salary or wages for work performed. The term "employer" shall not include the federal government, the State of Mississippi, or any political subdivision thereof, or any employer with ten thousand (10,000) or less employees in this state.

(c) "Health insurance costs" means the amount paid by an employer to provide health care or health insurance to employees in this state to the extent the costs may be deductible by an employer under federal tax law.

(d) "Health insurance costs" includes payments for medical care, prescription drugs, vision care, medical savings accounts, and any other costs to provide health benefits as defined in Section 213(d) of the Internal Revenue Code.

SECTION 3. (1) An employer that is organized as a nonprofit organization that does not spend at least six percent (6%) of the total wages paid to its employees in this state on health insurance costs shall pay to the Division of Medicaid, Office of the Governor an amount equal to the difference between what the employer spends for health insurance costs and an amount equal to six percent (6%) of the total wages paid to its employees in this state.

(2) An employer that is not organized as a nonprofit organization and does not spend at least eight percent (8%) of the total wages paid to its employees in this state on health insurance costs shall pay to the Division of Medicaid, Office of the Governor, an amount equal to the difference between what the employer spends for health insurance costs and an amount equal to eight percent (8%) of the total wages paid to its employees in this state.

(3) An employer may not deduct any payment made under subsection (1) or (2) from the wages of an employee.

(4) An employer shall make the payment required under this section to the Division of Medicaid, Office of the Governor, on a periodic basis as determine by the Executive Director of the Division of Medicaid.

(5) Failure to make the payment required under this section shall result in the imposition of a civil penalty by the Executive Director of the Division of Medicaid in an amount not to exceed Five Hundred Dollars ($500.00).

(6) On an annual basis, the Executive Director of the Division of Medicaid shall verify which employers have ten thousand (10,000) or more employees in this state and shall ensure that all employers have made the payment required in this section.

(7) The Division of Medicaid, Office of the Governor, shall promulgate rules and regulations necessary to carry out the provisions of this act.

SECTION 4. This act shall take effect and be in force from and after July 1, 2006.