Text: SF00324                           Text: SF00326
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Senate File 325

Partial Bill History

Bill Text

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 insurance which that 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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