6057764 Human Resources, Department of - Notice of Second Emergency and Proposed Rulemaking - To Amend Chapter 21, Health Benefits
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D.C. DEPARTMENT OF HUMAN RESOURCES
NOTICE OF SECOND EMERGENCY AND PROPOSED RULEMAKING
The Director of the D.C. Department of Human Resources, with the concurrence of the City Administrator, pursuant to Mayor’s Order 2008-92, dated June 26, 2008, and in accordance with Title XXI of the District of Columbia Government Comprehensive Merit Personnel Act of 1978 (CMPA), effective March 3, 1979 (D.C. Law 2-139; D.C. Official Code §§ 1-620.01 et seq. (2012 Repl. & 2015 Supp.)); the Health Care Benefits Expansion Amendment Act of 2005, effective April 4, 2006 (D.C. Law 16-82; D.C. Official Code § 32-706 (2012 Repl.)); and Title 26 of the United States Code §§ 125(a) and 152(a)(d)(2), hereby gives notice of the adoption, on an emergency basis, of an amendment to Section 2129, entitled “Optional Health Benefits Coverage for Domestic Partners,” of Chapter 21 (Health Benefits), of Title 6 (Personnel), Subtitle B (Government Personnel) of the District of Columbia Municipal Regulations (DCMR).
A Notice of Proposed and Emergency Rulemaking was initially published in the D.C. Register on May 20, 2016 at 63 DCR 007755. This notice did not provide a full explanation for the required updates and all impacted provisions that will be revised. Therefore, this second notice is being issued to supersede the previously published emergency rulemaking.
Premium conversion tax benefits, provided under Title 26 of the United States Code (U.S.C.) § 125(a), allow employees who are eligible for health insurance to pay their portion of the health insurance premium cost from their gross salary on a pre-tax basis. Employees are also allowed to enroll their spouse, as defined by District law, and dependent(s), as defined in 26 U.S.C. § 152, in their health insurance plan. The pre-tax benefit does not extend to domestic partners, unless the domestic partner qualifies as a “dependent” pursuant to 26 U.S.C. § 152(a). A domestic partner is considered a “dependent” if the individual receives more than half of his or her support from the employee for the calendar year in which the taxable year of the employee begins and is related to the employee through one of the relationships defined in 26 U.S.C. § 152(d)(2).
This rule will require an employee who enrolls a domestic partner for health insurance coverage under the D.C. Employee Health Benefits Program to deduct the health insurance premium cost on an after tax basis, unless the domestic partner meets the definition of “dependent” pursuant to 26 U.S.C. § 152(a). The utilization of emergency rulemaking is the only available means of complying with this requirement and, thereby, providing for the payment of health insurance premiums on an after-tax basis, as required by the Internal Revenue Service. Therefore, to ensure that the health insurance premium payments are in compliance with federal law, action was taken on April 22, 2016 to adopt the following rules on an emergency basis, effective April 22, 2016. These rules will remain in effect for up to one hundred twenty (120) days from the adoption date, expiring August 20, 2016, unless earlier superseded by another rulemaking notice.
The Director also gives notice of the intent to adopt this rule in not less than thirty (30) days from the date of publication of this notice in the D.C. Register. Upon adoption, this rule will amend Chapter 21 (Health Benefits) of Title 6-B DCMR (Government Personnel), published at 50 DCR 3027 (April 18, 2003) and 56 DCR 003667 (May 8, 2009).
D.C. PERSONNEL REGULATIONS
Chapter 21, HEALTH BENEFITS, of Title 6-B DCMR, GOVERNMENT PERSONNEL, is amended as follows:
Subsections 2129.7 through 2129.13 of Section 2129, OPTIONAL HEALTH BENEFITS COVERAGE FOR DOMESTIC PARTNERS, are being amended to read as follows:
2129.7 Any health insurance premiums pursuant to this section shall be deducted on an after-tax basis directly from the employee’s paycheck.
2129.8 A domestic partner may qualify as a dependent, if he or she meets the definition of a dependent, as defined in Title 26 of the United States Code § 152.
2129.9 Health benefits for a domestic partner and eligible dependents shall be terminated upon the death of the employee. A surviving domestic partner enrolled as a dependent may convert to an individual health insurance policy directly through the health insurance provider.
2129.10 Upon termination of District government service, the eligible employee may elect to continue health benefits coverage as specified in Section 2130 of this chapter, and may include continued health benefits coverage for his or her domestic partner and eligible dependents of the domestic partner.
2129.11 An eligible employee shall inform his or her personnel authority, in writing, of any change in the circumstances attested to in the Affidavit of Domestic Partnership for Health Insurance Benefits referenced in Subsection 2129.4 of this section.
2129.12 A domestic partnership may be terminated, with or without the consent of both partners, by filing a termination of domestic partnership statement with the D.C. Department of Health. The termination of the domestic partnership shall become effective six (6) months after the date it is filed with the D.C. Department of Health.
2129.13 An employee whose domestic partnership is terminated as specified in Subsection 2129.12 of this section shall notify his or her personnel authority within thirty (30) days of the filing of the termination of domestic partnership statement. Health benefits enrollment of the domestic partner and his or her dependents shall continue, at the cost specified in Subsection 2129.6 of this section, during the six (6) months that the termination of the domestic partnership is pending, provided District government employment is maintained.
Comments on this emergency and proposed regulation should be submitted, in writing, within thirty (30) days of the date of the publication of this notice to Mr. Justin Zimmerman, Associate Director, Policy and Compliance Administration, D.C. Department of Human Resources, 441 4th Street, N.W., Suite 330S, Washington, D.C. 20001, or via email at justin.zimmerman@dc.gov. Additional copies of this proposed regulation is available at the above address.