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House Journal: Page 796: Tuesday, March 25, 1997

18     (2)  Any adjustment due to change in coverage or
19   change in the case characteristics of the small
20   employer as determined from the small employer
21   carrier's rate manual for the class of business.
22     Sec. ___.  Section 513B.4, subsection 3, unnumbered
23   paragraph 3, Code 1997, is amended to read as follows:
24     Rating factors shall produce premiums for identical
25   groups which differ only by amounts attributable to
26   plan coverage design and do not reflect differences
27   due to the nature of the groups assumed to select
28   particular health benefit plans.  A small employer
29   carrier shall treat all health benefit plans
insurance
30   coverages issued or renewed in the same calendar month
31   as having the same rating period.
32     Sec. ___.  Section 513B.4, subsection 4, Code 1997,
33   is amended to read as follows:
34     4.  For purposes of this section, a health benefit
35   plan insurance coverage that contains a restricted
36   network provision shall not be considered similar
37   coverage to a health benefit plan insurance coverage
38   that does not contain such a provision, if the
39   restriction of benefits to network providers results
40   in substantial differences in claims costs.
41     Sec. ___.  Section 513B.4A, Code 1997, is amended
42   to read as follows:
43     513B.4A  EXEMPTION FROM PREMIUM RATE RESTRICTIONS.
44     A Taft-Hartley trust or a carrier with the written
45   authorization of such a trust may make a written
46   request to the commissioner for an exemption from the
47   application of any provisions of section 513B.4 with
48   respect to a health benefit plan health insurance
49   coverage provided to such a trust.  The commissioner
50   may grant an exemption if the commissioner finds that

Page 5

 1   application of section 513B.4 with respect to the
 2   trust would have a substantial adverse effect on the
 3   participants and beneficiaries of such trust, and
 4   would require significant modifications to one or more
 5   collective bargaining arrangements under which the
 6   trust is established or maintained.  An exemption
 7   granted under this section shall not apply to an
 8   individual if the individual participates in a trust
 9   as an associate member of an employee organization."
10     8.  Page 7, by inserting after line 19 the
11   following:
12     "Sec. ___.  Section 513B.6, unnumbered paragraph 1,
13   Code 1997, is amended to read as follows:
14     A small employer carrier or organized delivery
15   system shall make reasonable disclosure in
16   solicitation and sales materials provided to small
17   employers of all of the following:

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