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1 1 Section 1. NEW SECTION. 514I.1 IOWA HEALTHY KIDS
1 2 CORPORATION ACT – SHORT TITLE – LEGISLATIVE INTENT.
1 3 1. This chapter may be cited as the "Iowa Healthy Kids
1 4 Corporation Act".
1 5 2. The general assembly finds that increased access to
1 6 health care services could improve children's health and
1 7 reduce the incidence and costs of childhood illness and
1 8 disabilities among children in this state. Many children do
1 9 not have health care services available or funded, and for
1 10 those who do, lack of access is a restriction to obtaining
1 11 such services. It is the intent of the general assembly that
1 12 a nonprofit corporation be organized to facilitate a program
1 13 to provide health care services and comprehensive health
1 14 benefit or insurance coverage to children. A goal for the
1 15 corporation created in this chapter is to cooperate with any
1 16 existing programs funded by either the public or private
1 17 sector.
1 18 3. For the purposes of this chapter, unless the context
1 19 otherwise requires:
1 20 a. "Board" means the Iowa healthy kids corporation board
1 21 of directors designated in section 514I.4.
1 22 b. "Corporation" means the Iowa healthy kids corporation
1 23 created in section 514I.2.
1 24 c. "Program" means the program developed by the
1 25 corporation in accordance with section 514I.3.
1 26 Sec. 2. NEW SECTION. 514I.2 IOWA HEALTHY KIDS
1 27 CORPORATION AUTHORIZATION.
1 28 1. The general assembly creates the Iowa healthy kids
1 29 corporation, a quasi-public nonprofit corporation which shall
1 30 be organized under chapter 504A. The corporation shall not be
1 31 regarded as a state agency. A member of the board is not
1 32 considered a state employee, except for purposes of chapter
1 33 669, relating to state tort claims. Chapters 8, 17A, 18, 19A,
1 34 and 20, and other provisions of law that relate to the
1 35 requirements or restrictions dealing with state personnel or
2 1 state funds, do not apply to the corporation and any employees
2 2 of the board or the corporation except to the extent provided
2 3 in this chapter. The corporation shall have all powers
2 4 necessary to carry out the purposes of this chapter,
2 5 including, but not limited to, the power to receive and accept
2 6 grants, loans, or advances of funds from any person and to
2 7 receive and accept from any source contributions of money,
2 8 property, labor, or any other thing of value, to be held,
2 9 used, and applied for the purposes of this chapter.
2 10 2. The corporation shall operate initially on a pilot
2 11 project basis to include urban and rural areas. Expansion
2 12 beyond the initial pilot project is subject to authorization
2 13 by law.
2 14 Sec. 3. NEW SECTION. 514I.3 IOWA HEALTHY KIDS
2 15 CORPORATION DUTIES.
2 16 The corporation shall develop a program to attain all of
2 17 the following objectives:
2 18 1. Provide comprehensive health benefits or insurance
2 19 coverage to children.
2 20 2. Arrange for the collection of any payment or premium,
2 21 in an amount to be determined by the corporation board of
2 22 directors. The payment or premium shall be collected from a
2 23 family of a participating child or other person to provide for
2 24 payment for health care services or premiums for comprehensive
2 25 health benefits or insurance coverage and for the actual or
2 26 estimated administrative expenses incurred during the period
2 27 for which the payments are made. The amount of payment or
2 28 premium charged shall be based on the ability of the family of
2 29 a child to pay. The board shall provide for adjustment of the
2 30 amount charged to reflect contributions, public subsidy, or
2 31 other means used to defray the amount charged.
2 32 3. Establish administrative and accounting procedures for
2 33 the operation of the corporation.
2 34 4. Establish, in consultation with appropriate
2 35 professional organizations, standards for health care
3 1 services, providers, and comprehensive health benefits or
3 2 insurance coverage appropriate for children and their family
3 3 members.
3 4 5. Establish eligibility criteria which children and their
3 5 family members must meet in order to participate in the
3 6 program.
3 7 6. Establish participation criteria for the program and,
3 8 if appropriate, contract with an authorized insurer, health
3 9 maintenance organization, or insurance or benefits
3 10 administrator to provide administrative services to the
3 11 corporation.
3 12 7. Contract with authorized insurers or benefits providers
3 13 or any provider of health care services, meeting standards
3 14 established by the corporation, for the provision of
3 15 comprehensive health benefits or insurance coverage and health
3 16 care services to participants.
3 17 8. Develop and implement a plan to publicize the Iowa
3 18 healthy kids corporation program, eligibility requirements of
3 19 the program, and procedures for enrollment in the program and
3 20 to maintain public awareness of the corporation and the
3 21 program.
3 22 9. Secure staff necessary to properly administer the
3 23 corporation and the program. Staff costs shall be funded from
3 24 state and local matching funds and other private or public
3 25 funds as they become available. The board shall determine the
3 26 number of staff members necessary to administer the
3 27 corporation and the program.
3 28 10. As appropriate, enter into contracts with local school
3 29 boards or other agencies to provide on-site information,
3 30 enrollment, and other services necessary to the operation of
3 31 the program.
3 32 11. Provide an interim report on or before March 1, 1997,
3 33 to the governor, commissioner of insurance, director of the
3 34 department of education, director of public health, and
3 35 general assembly, on the development of the program to date
4 1 and an annual report thereafter until the program is
4 2 terminated or extended statewide.
4 3 Sec. 4. NEW SECTION. 514I.4 BOARD OF DIRECTORS.
4 4 1. The corporation shall operate subject to the
4 5 supervision and approval of a board of directors chaired by
4 6 the commissioner of insurance or the commissioner's designee,
4 7 and composed of fourteen other members selected for three-year
4 8 staggered terms as follows:
4 9 a. One member who is a school administrator appointed by
4 10 the director of the department of education.
4 11 b. One member who is a member of a school board appointed
4 12 by the director of the department of education.
4 13 c. One member employed by the state or local government in
4 14 public health services appointed by the director of public
4 15 health.
4 16 d. One member who is a pediatrician nominated by the
4 17 American academy of pediatrics, Iowa chapter, appointed by the
4 18 director of public health.
4 19 e. The director of human services or the director's
4 20 designee.
4 21 f. One member appointed by the commissioner of insurance
4 22 from among persons nominated by the association of Iowa
4 23 hospitals and health systems.
4 24 g. Two members who are representatives of authorized
4 25 health care insurers or health maintenance organizations
4 26 appointed by the commissioner of insurance.
4 27 h. One member who represents a university center for
4 28 health issues appointed by the commissioner of insurance.
4 29 i. One member who is a family practice physician nominated
4 30 by the Iowa academy of family physicians appointed by the
4 31 director of public health.
4 32 j. One member who is a school nurse nominated by the Iowa
4 33 nurses association appointed by the director of public health.
4 34 k. The director of public health or the director's
4 35 designee.
5 1 l. A citizen who is knowledgeable concerning health care
5 2 and children's issues appointed by the commissioner of
5 3 insurance.
5 4 m. A citizen who is a parent with children at home who is
5 5 active in a school-parent organization appointed by the
5 6 director of the department of education.
5 7 2. A member of the board of directors may be removed by
5 8 the official who appointed that member prior to the completion
5 9 of the member's term. The board shall appoint an executive
5 10 director, who is responsible for other staff authorized by the
5 11 board.
5 12 3. Board members are entitled to receive, from funds of
5 13 the corporation, reimbursement for actual and necessary
5 14 expenses incurred in the performance of their official duties.
5 15 There shall be no liability on the part of, and no cause of
5 16 action shall arise against, any member of the board of
5 17 directors for any action the member takes in the performance
5 18 of the member's powers and duties under this chapter.
5 19 Sec. 5. NEW SECTION. 514I.5 LICENSING NOT REQUIRED –
5 20 FISCAL OPERATION.
5 21 1. Health benefits or insurance coverage obtained under
5 22 the Iowa healthy kids corporation program is secondary to any
5 23 other available private or public health benefits or insurance
5 24 coverage held by the participant child or family member. The
5 25 corporation may establish procedures for coordinating benefits
5 26 under this program with benefits under other public and
5 27 private coverage.
5 28 2. The corporation shall not be deemed an insurer. The
5 29 officers, directors, and employees of the corporation shall
5 30 not be deemed to be agents of an insurer. The corporation and
5 31 any officer, director, or employee of the corporation is not
5 32 subject to the insurance licensing requirements of state law
5 33 or the administrative rules of the insurance division.
5 34 However, the insurance division may require that any marketing
5 35 representative utilized and compensated by the corporation be
6 1 appointed as a representative of the insurers or health
6 2 benefits services providers with which the corporation
6 3 contracts.
6 4 3. The board has complete fiscal control over the
6 5 corporation and is responsible for all corporate operations.
6 6 4. The insurance division shall supervise any liquidation
6 7 or dissolution of the corporation and shall have, with respect
6 8 to a liquidation or dissolution, all power granted to it
6 9 pursuant to this subtitle.
6 10 Sec. 6. NEW SECTION. 514I.6 THE IOWA HEALTHY KIDS TRUST
6 11 FUND.
6 12 1. An Iowa healthy kids trust fund is created in the state
6 13 treasury under the authority of the commissioner of insurance,
6 14 to which all appropriations shall be deposited and used to
6 15 carry out the purposes of this chapter. Other revenues of the
6 16 corporation such as grants, contributions, matching funds, and
6 17 participant payments shall not be considered revenue of the
6 18 state, but rather shall be funds of the corporation. However,
6 19 the corporation may designate portions of grants,
6 20 contributions, matching funds, and participant payments as
6 21 funds of the state and deposit those funds in the trust fund.
6 22 2. The trust fund shall be separate from the general fund
6 23 of the state and shall not be considered part of the general
6 24 fund of the state. The moneys in the trust fund are not
6 25 subject to section 8.33 and shall not be transferred, used,
6 26 obligated, appropriated, or otherwise encumbered except as
6 27 provided in this section. Notwithstanding section 12C.7,
6 28 subsection 2, interest or earnings on moneys deposited in the
6 29 trust fund shall be credited to the trust fund.
6 30 Sec. 7. NEW SECTION. 514I.7 ACCESS TO RECORDS –
6 31 CONFIDENTIALITY – PENALTIES.
6 32 1. Notwithstanding any other law to the contrary, the
6 33 corporation shall have access to the medical records of a
6 34 child who is participating or applying to participate in the
6 35 program upon receipt of permission from a parent or guardian
7 1 of the child, including but not limited to the medical records
7 2 maintained by the state or a political subdivision of the
7 3 state. Notwithstanding chapter 22, any identifying
7 4 information, including medical records and family financial
7 5 information, obtained by the corporation pursuant to this
7 6 subsection is confidential. The corporation, the
7 7 corporation's employees, and agents of the corporation shall
7 8 not release, without the written consent of the participant or
7 9 the parent or guardian of the participant, to any state or
7 10 federal agency, to any private business or person, or to any
7 11 other entity, any confidential information received pursuant
7 12 to this subsection.
7 13 2. A violation of the provisions of subsection 1 is a
7 14 serious misdemeanor.
7 15 Sec. 8. INITIAL TERMS. In order to provide for staggered
7 16 terms, the initial terms of the appointments to the Iowa
7 17 healthy kids corporation board of directors in section 514I.4,
7 18 as enacted by this Act, shall be as follows:
7 19 1. The appointments in subsection 1, paragraphs "a"
7 20 through "d", one year.
7 21 2. The appointments in subsection 1, paragraphs "e"
7 22 through "h", two years.
7 23 3. The appointments in subsection 1, paragraphs "i"
7 24 through "k", three years.
7 25 Sec. 9. HEALTHY KIDS CORPORATION. There is appropriated
7 26 from the general fund of the state to the insurance division
7 27 of the department of commerce for the fiscal year beginning
7 28 July 1, 1996, and ending June 30, 1997, the following amount,
7 29 or so much thereof as is necessary, to be used for the
7 30 purposes designated:
7 31 For planning, administration, and implementation of the
7 32 Iowa healthy kids corporation:
7 33 .................................................. $ 500,000
7 34 Notwithstanding section 8.33, moneys appropriated in this
7 35 section which remain unexpended or unobligated at the close of
8 1 the fiscal year shall not revert to the general fund of the
8 2 state but shall remain available for expenditure in the
8 3 succeeding fiscal year.
8 4 EXPLANATION
8 5 This bill creates an Iowa healthy kids corporation to
8 6 provide health services and health coverage to children.
8 7 New section 514I.1 provides legislative findings as to the
8 8 need for the corporation and definitions.
8 9 New section 514I.2 provides the corporation is a quasi-
8 10 public nonprofit corporation organized under state law and is
8 11 authorized to receive moneys and other assistance to be used
8 12 for the purposes of the program. The bill provides that as a
8 13 quasi-public corporation, the corporation shall not be
8 14 regarded as a state agency and the following chapters' state
8 15 personnel and state fund requirements or restrictions do not
8 16 apply: chapter 8, the state budget and financial control Act;
8 17 chapter 17A, the state administrative procedures Act; chapter
8 18 19A, relating to the department of personnel; and chapter 20,
8 19 relating to collective bargaining. A member of the board is
8 20 not considered a state employee except for purposes of chapter
8 21 669, relating to tort claims. Initially, the corporation is
8 22 to operate a pilot project which includes rural and urban
8 23 areas. Expansion beyond the pilot project must be authorized
8 24 by law.
8 25 New section 514I.3 specifies the corporation's duties to
8 26 provide a program of services, comprehensive health benefits,
8 27 or insurance coverage to children; arrange for collection of
8 28 payments or premiums; establish administrative processes;
8 29 establish standards for services and benefits; establish
8 30 eligibility criteria; provide authority for the corporation to
8 31 contract for health coverages or administrative services;
8 32 require development of a publicity plan; authorize staff;
8 33 authorize contracting with school boards and other agencies;
8 34 and require an initial and annual report.
8 35 New section 514I.4 provides for the membership on the board
9 1 of directors. Appointments of knowledgeable members are to be
9 2 made by the governor, commissioner of insurance, director of
9 3 the department of education, and director of public health.
9 4 Members are to serve for three-year staggered terms but can be
9 5 removed by the appointing authority. Members are eligible for
9 6 reimbursement of actual and necessary expenses.
9 7 New section 514I.5 provides that insurance under the
9 8 program is secondary coverage. In addition, this section
9 9 provides the corporation is not to be deemed an insurer and
9 10 its officers, directors, and employees are not to be deemed
9 11 agents of an insurer. The board of directors has complete
9 12 fiscal control. The insurance division is directed to
9 13 supervise if the corporation is liquidated or dissolved.
9 14 New section 514I.6 creates an Iowa healthy kids trust fund
9 15 under the authority of the commissioner of insurance for
9 16 deposit and disbursement of public moneys and other funds
9 17 appropriated for the program.
9 18 New section 514I.7 provides for access to confidential
9 19 medical records of a child as authorized by the child's parent
9 20 or guardian. Confidential records are not an open public
9 21 record and unauthorized disclosure is a serious misdemeanor.
9 22 The bill makes a $500,000 appropriation to the insurance
9 23 division for the fiscal year beginning July 1, 1996, for
9 24 purposes of the Iowa healthy kids corporation planning,
9 25 administration, and implementation. Moneys from the
9 26 appropriation can be carried to the succeeding fiscal year.
9 27 A temporary law section provides for staggering the initial
9 28 terms of the corporation's board of directors.
9 29 LSB 3960SV 76
9 30 jp/jw/5
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