SECTION 1.  Section 25 of chapter 32B of the General Laws, as appearing in the 2020 Official Edition, is hereby amended by adding the following subsection:-

“(a) For the purposes of this chapter, health reimbursement arrangements shall satisfy the group insurance requirements to eligible retired employees as defined in section 1 and their Medicare eligible dependents and permit said employees and their Medicare eligible dependents to enter into a health insurance plan purchased on the individual Medicare marketplace. In lieu of the premium cost sharing arrangement outlined in Section 2, minimum annual funding for such health reimbursement arrangements of this chapter for each eligible retired employee and/or dependent shall be established by adding 50% of the sum of the lowest cost Medicare Supplement 1 plan filed in the Commonwealth by January 1 of the current calendar year plus the weighted average Part D premium in Region 2 for the prior calendar year.”

SECTION 2.  Section 4 of chapter 32A of the General Laws, as appearing in the 2020 Official Edition, is hereby amended by adding the following subsection:-

“(a) Notwithstanding any general or special law or regulation to the contrary, Medicare eligible retired employees and their Medicare eligible dependents subject to the provisions of this chapter shall be permitted to enter into a health insurance plan purchased on the individual Medicare marketplace. In lieu of the premium cost sharing arrangement outlined in this chapter, minimum annual funding for such health reimbursement arrangements defined by section 25 of chapter 32B shall be established by adding “X%” of the sum of the lowest cost Medicare Supplement 1 plan filed in the Commonwealth by January 1 of the current calendar year plus the weighted average Part D premium in Region 2 for the prior calendar year, where “X%” equals the current premium cost sharing between the Commonwealth and eligible retirees.”