SSB 3173 (LSB 6157XC (5) 87)

SENATE FILE _____ 

BY  (PROPOSED COMMITTEE ON COMMERCE BILL BY CHAIRPERSON CHAPMAN)

A BILL FOR

An Act relating to health benefit plans for members of 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.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This bill relates to health benefit plans for members of certain agricultural organizations.
   The bill provides that a health benefit plan sponsored by a nonprofit agricultural organization domiciled in the state for its members shall not be deemed to be insurance and shall not be subject to the jurisdiction of the commissioner of insurance if it meets the requirements as outlined in the bill.
   The bill requires that the health benefit plan be provided via a self-funded arrangement and administered by a domestic third-party administrator that holds a certificate of registration issued by the commissioner. The third-party administrator shall have acted as the third-party administrator of health care administrative services, either directly or through an affiliate, for the nonprofit agricultural organization for more than 10 consecutive years prior to the date the nonprofit agricultural organization begins offering a health benefit plan to its members.
   The organization shall certify its compliance with the requirements of the bill with the commissioner prior to providing a health benefit plan to its members.