Text: SF00324 Text: SF00326 Text: SF00300 - SF00399 Text: SF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Section 1. Section 507A.4, subsection 10, Code 2001, is 1 2 amended to read as follows: 1 3 10. a. Transactions involving a multiple employer welfare 1 4 arrangement, as defined in section 3 of the federal Employee 1 5 Retirement Income Security Act of 1974, 29 U.S.C. } 1002, 1 6 paragraph 40, if the multiple employer welfare arrangement 1 7 meets all of the following conditions: 1 8 (1) The arrangement is administered by an authorized 1 9 insurer or an authorized third-party administrator. 1 10 (2) The arrangement has been in existence and provided 1 11 health insurance in Iowa for at least five years prior to July 1 12 1, 1997. 1 13 (3) The arrangement was established by a trade, industry, 1 14 or professional association of employers that has a 1 15 constitution or bylaws, and has been organized and maintained 1 16 in good faith for at least ten continuous years prior to July 1 17 1, 1997. 1 18 (4) The arrangement registers with and obtains a 1 19 certificate of registration issued by the commissioner of 1 20 insurance. 1 21 (5) The arrangement is subject to the jurisdiction of the 1 22 commissioner of insurance, including regulatory oversight and 1 23 solvency standards as established by rules adopted by the 1 24 commissioner of insurance pursuant to chapter 17A. 1 25 b. A multiple employer welfare arrangement registered with 1 26 the commissioner of insurancewhichthat does not meet the 1 27 solvency standards established by rule adopted by the 1 28 commissioner of insurance is subject to chapter 507C. 1 29 c. A multiple employer welfare arrangement that meets all 1 30 of the conditions of paragraph "a" shall not be considered any 1 31 of the following: 1 32 (1) An insurance company or association of any kind or 1 33 character under section 432.1. 1 34 (2) A member of the Iowa individual health benefit 1 35 reinsurance association under section 513C.10. 2 1 (3) A member insurer of the Iowa life and health insurance 2 2 guaranty association under section 508C.5, subsection 8. 2 3 d. A multiple employer welfare arrangement registered with 2 4 the commissioner of insurance shall file with the commissioner 2 5 of insurance on or before March 1 of each year a copy of the 2 6 report required to be filed with the United States department 2 7 of labor pursuant to 29 C.F.R. } 2520.101-2. 2 8 e. A multiple employer welfare arrangement registered with 2 9 the commissioner of insurance shall file with the commissioner 2 10 of insurance on or before March 1 of each year an annual 2 11 report containing all of the following information regarding 2 12 the multiple employer welfare arrangement: 2 13 (1) The number of participants. 2 14 (2) The amount of premium collected. 2 15 (3) Those special health and accident coverages under 2 16 chapter 514C provided by the multiple welfare arrangement. 2 17 f. The reports filed by the multiple employer welfare 2 18 arrangements pursuant to paragraph "e" shall be compiled by 2 19 the insurance division and filed annually with the general 2 20 assembly by March 30. The compilation shall include the 2 21 following information: 2 22 (1) A computation of the amount of premium tax that would 2 23 have been paid by the multiple employer welfare arrangements 2 24 if the arrangements had been insurance companies. 2 25 (2) A computation of the amount that would have been 2 26 assessed by the Iowa individual health benefit reinsurance 2 27 association to the multiple employer welfare arrangements if 2 28 the arrangements had been members of the Iowa individual 2 29 health benefit reinsurance association. 2 30 Sec. 2. INTERIM STUDY. The legislative council is 2 31 requested to authorize an interim study committee to review 2 32 the current status of the health insurance market in Iowa with 2 33 regard to multiple employer welfare arrangements presently 2 34 registered with the commissioner of insurance, and whether or 2 35 not additional multiple employer welfare arrangements should 3 1 be permitted to operate in Iowa. The study shall include a 3 2 review of the regulatory oversight of all health insurance 3 3 products sold in Iowa, and report on the conditions of the 3 4 health insurance market in Iowa. The study committee shall be 3 5 composed of representatives of the general assembly, the 3 6 insurance division, the insurance industry, the business 3 7 community, and such other interests as the legislative council 3 8 deems appropriate. Appointments to the committee shall be 3 9 made no later than June 15, 2001. Staffing for the committee 3 10 shall be provided by the legislative service bureau. The 3 11 study committee shall submit a report of findings and 3 12 recommendations, including proposed legislation, if any, to 3 13 the general assembly on or before November 15, 2001. 3 14 Sec. 3. 1994 Iowa Acts, chapter 1038, section 3, as 3 15 amended by 1995 Iowa Acts, chapter 33, section 1; 1996 Iowa 3 16 Acts, chapter 1024, section 1; 1997 Iowa Acts, chapter 67, 3 17 section 2; and 1998 Iowa Acts, chapter 1012, section 1, is 3 18 repealed. 3 19 Sec. 4. Section 507A.4, subsection 10, paragraphs e and f, 3 20 as enacted in this Act, are amended by striking the paragraphs 3 21 effective July 1, 2002. 3 22 Sec. 5. EFFECTIVE DATE. This Act, being deemed of 3 23 immediate importance, takes effect upon enactment. 3 24 EXPLANATION 3 25 This bill relates to regulation of multiple employer 3 26 welfare arrangements (MEWAs) by the commissioner of insurance. 3 27 The bill repeals the sunset repeal date of July 1, 2001, as 3 28 provided in the Iowa Acts as amended, thereby making 3 29 regulation of MEWAs as provided in Code section 507A.4, 3 30 subsection 10, no longer subject to sunset. 3 31 The bill also amends Code section 507A.4, subsection 10, 3 32 which provides that MEWAs are excluded from consideration as 3 33 an unauthorized insurer in the state if the conditions of the 3 34 subsection are met. The subsection is amended to provide that 3 35 one condition is that the arrangement has been in existence 4 1 and provided health insurance specifically in Iowa for at 4 2 least five years prior to July 1, 1997, rather than the 4 3 previous requirement of providing the health insurance 4 4 anywhere for at least five years prior to July 1, 1997. 4 5 In addition, a new paragraph is added to the subsection to 4 6 provide that a MEWA meeting the conditions in the subsection 4 7 will not be considered to be an insurance company or 4 8 association under Code section 432.1, a member of the Iowa 4 9 individual health benefit reinsurance association under Code 4 10 section 513C.10, or a member insurer of the Iowa life and 4 11 health insurance guaranty association under Code section 4 12 508C.5, subsection 8. 4 13 Another new paragraph requires a MEWA registered with the 4 14 commissioner of insurance to file with the commissioner a copy 4 15 of the report filed with the United States department of labor 4 16 of each year. 4 17 Two other new paragraphs require the MEWAs to file an 4 18 annual report with the commissioner indicating the number of 4 19 participants, the amount of premium collected, and coverages 4 20 under Code chapter 514C provided by the MEWA. The insurance 4 21 division, in turn, shall compile the information and file it 4 22 with the general assembly. These paragraphs are repealed 4 23 effective July 1, 2002. 4 24 The bill also includes a request for an interim study on 4 25 MEWAs. 4 26 The bill takes effect upon enactment. 4 27 LSB 2158SV 79 4 28 jj/pj/5
Text: SF00324 Text: SF00326 Text: SF00300 - SF00399 Text: SF Index Bills and Amendments: General Index Bill History: General Index
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