Bill Text: IA SF2349 | 2017-2018 | 87th General Assembly | Enrolled
Bill Title: A bill for an act relating to health plans established by associations of employers or sponsored by certain agricultural organizations. (Formerly SF 2182.) Effective 7-1-18.
Spectrum: Committee Bill
Status: (Passed) 2018-04-02 - Signed by Governor. S.J. 860. [SF2349 Detail]
Download: Iowa-2017-SF2349-Enrolled.html
Senate File 2349 - Enrolled
SENATE FILE
BY COMMITTEE ON COMMERCE
(SUCCESSOR TO SF 2182)
\5
A BILL FOR
\1
Senate File 2349
AN ACT
RELATING TO HEALTH PLANS ESTABLISHED BY ASSOCIATIONS
OF EMPLOYERS OR SPONSORED BY CERTAIN AGRICULTURAL
ORGANIZATIONS.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
Section 1. NEW SECTION. 505.20 Certain agricultural
organizations exempt from regulation.
1. A health benefit plan, sponsored by a nonprofit
agricultural organization domiciled in this state and created
primarily to promote programs for the development of rural
communities and the economic stability and sustainability of
farmers in the state which meets the requirements set forth in
subsection 2, shall be deemed to not be insurance and shall
not be subject to the provisions of Title XIII, subtitle 1, to
the extent such plan, after January 1, 2018, provides health
benefits under a self=funded arrangement that is administered
by a domestic entity that is registered as a third=party
administrator pursuant to chapter 510 and that has continuously
provided, either directly or through an affiliate, health
care administrative services to the nonprofit agricultural
organization or its affiliates for a period in excess of ten
years.
2. A nonprofit agricultural organization providing a health
benefit plan to its members under this section must meet all
of the following requirements:
a. Have been in existence for twenty=five continuous years
prior to the issuance of health benefits to members of the
organization.
b. Provide membership opportunities for eligible individuals
in all ninety=nine counties of the state.
c. Collect annual dues from members.
d. Hold regular meetings to further the purposes of the
members.
e. Provide the members with representation on its governing
board and committees.
f. Provide education, mentoring, and financial assistance to
grow and expand rural businesses in the state.
g. Have contracted with the domestic entity described in
subsection 1 to administer the health benefit plan.
3. Such nonprofit agricultural organization shall file a
certification with the commissioner that the organization meets
the foregoing requirements prior to providing health benefits
under a self=funded arrangement to its members.
Sec. 2. Section 507A.4, subsection 9, Code 2018, is amended
to read as follows:
9. a. Transactions involving a multiple employer welfare
arrangement, as defined in section 3 of the federal Employee
Retirement Income Security Act of 1974, 29 U.S.C. {1002,
paragraph 40, if the multiple employer welfare arrangement
meets all of the following conditions:
(1) The arrangement is administered by an authorized
insurer or an authorized third=party administrator.
(2) The arrangement has been in existence and provided
health insurance in Iowa for at least five years prior to July
1, 1997.
(3) (2) The arrangement was is established by a trade,
industry, or professional association of employers that
has a constitution or bylaws, and has been is organized and
maintained in good faith for at least ten continuous years
prior to July 1, 1997 with membership stability as defined by
rules adopted by the commissioner.
(4) (3) The arrangement registers with and obtains
and maintains a certificate of registration issued by the
commissioner of insurance.
(5) (4) The arrangement is subject to the jurisdiction
of the commissioner of insurance, including regulatory
oversight and complies with all rules and solvency standards as
established by rules adopted by the commissioner of insurance
pursuant to chapter 17A.
b. A multiple employer welfare arrangement registered with
the commissioner of insurance that does not meet the solvency
standards requirements established by rule adopted by the
commissioner of insurance is pursuant to chapter 17A shall be
subject to chapter 507C.
c. A multiple employer welfare arrangement that meets all
of the conditions of paragraph "a" shall not be considered any
of the following:
(1) An insurance company or association of any kind or
character under section 432.1.
(2) A member of the Iowa individual health benefit
reinsurance association under section 513C.10.
(3) A member insurer of the Iowa life and health insurance
guaranty association under section 508C.5, subsection 12.
d. A multiple employer welfare arrangement registered with
the commissioner of insurance shall file with the commissioner
of insurance on or before March 1 of each year a copy of the
report required to be filed by the multiple employer welfare
arrangement with the United States department of labor pursuant
to 29 C.F.R. {2520.101=2. A newly formed multiple employer
welfare arrangement shall file with the commissioner a copy
of the report required to be filed pursuant to 29 C.F.R.
{2520.101=2 by a newly formed multiple employer welfare
arrangement with the United States department of labor thirty
days prior to operating in any state. The copy shall be filed
with the commissioner within thirty calendar days of the date
that the multiple employer welfare arrangement files the report
with the United States department of labor.
e. When not otherwise provided, a A foreign or domestic
multiple employer welfare arrangement doing business in this
state shall pay to the commissioner of insurance the fees
as required in pursuant to section 511.24 unless otherwise
provided by law.
Sec. 3. Section 509.1, Code 2018, is amended by adding the
following new subsection:
NEW SUBSECTION. 8A. A policy of group health insurance
coverage issued to an associated health plan pursuant
to section 513D.1 that is subject to regulation by the
commissioner.
Sec. 4. Section 509.1, subsection 9, unnumbered paragraph
1, Code 2018, is amended to read as follows:
A policy issued to a resident of this state under a group
life, accident, or health insurance policy issued to a group
other than one described in subsections 1 through 8 8A, subject
to the following requirements:
Sec. 5. NEW SECTION. 513D.1 Association health plans.
The commissioner shall adopt rules that allow for the
creation of association health plans that are consistent with
the United States department of labor's regulations in 29
C.F.R. pt. 2510.
Sec. 6. NEW SECTION. 513D.2 Rules and enforcement.
1. The commissioner shall adopt rules, as necessary,
pursuant to chapter 17A to administer this chapter.
2. The commissioner may take any enforcement action under
the commissioner's authority to enforce compliance with this
chapter.
Sec. 7. EMERGENCY RULES. The commissioner may adopt
emergency rules under section 17A.4, subsection 3, and
section 17A.5, subsection 2, paragraph "b", to administer the
provisions of this Act. Any rules adopted in accordance with
this section shall also be published as a notice of intended
action as provided in section 17A.4.
CHARLES SCHNEIDE
LINDA UPMEYER
W. CHARLES SMITH
KIM REYNOLDS
-1-
