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Senate Study Bill 1118

Bill Text

PAG LIN
  1  1    Section 1.  Section 513C.3, subsection 5, Code 2001, is
  1  2 amended to read as follows:
  1  3    5.  "Carrier" means any entity that provides individual
  1  4 health benefit plans in this state.  For purposes of this
  1  5 chapter, carrier includes an insurance company, a group
  1  6 hospital or medical service corporation, a fraternal benefit
  1  7 society, a health maintenance organization, and any other
  1  8 entity providing an individual plan of health insurance or
  1  9 health benefits subject to state insurance regulation, except
  1 10 any entity establishing a plan under chapter 509A.  "Carrier"
  1 11 does not include an organized delivery system.
  1 12    Sec. 2.  Section 513C.5, subsection 2, Code 2001, is
  1 13 amended to read as follows:
  1 14    2.  Notwithstanding subsection 1, the commissioner, with
  1 15 the concurrence of the board of the Iowa individual health
  1 16 benefit reinsurance association established in section 513C.10
  1 17 under chapter 514E, may by order reduce or eliminate the
  1 18 allowed rating bands provided under subsection 1, paragraphs
  1 19 "a", "b", "c", and "e", or otherwise limit or eliminate the
  1 20 use of experience rating.  The commissioner shall also develop
  1 21 a recommendation for the elimination of age as a rating
  1 22 characteristic, and shall submit such recommendation by
  1 23 January 8, 1996.
  1 24    Sec. 3.  Section 513C.10, subsection 1, Code 2001, is
  1 25 amended to read as follows:
  1 26    1.  A nonprofit corporation is established to be known as
  1 27 the The Iowa individual health benefit reinsurance association
  1 28 is established as a nonprofit corporation.
  1 29    a.  All persons that provide health benefit plans in this
  1 30 state including insurers providing accident and sickness
  1 31 insurance under chapter 509, 514, or 514A; fraternal benefit
  1 32 societies providing hospital, medical, or nursing benefits
  1 33 under chapter 512B; and health maintenance organizations,
  1 34 organized delivery systems, and all other entities providing
  1 35 health insurance or health benefits subject to state insurance
  2  1 regulation, except any entity establishing a plan under
  2  2 chapter 509A, shall be members of this association.
  2  3    b.  The association shall be incorporated under chapter
  2  4 504A, shall operate under a plan of operation established and
  2  5 approved pursuant to chapter 504A, and shall exercise its
  2  6 powers through a the board of directors established under this
  2  7 section chapter 514E.
  2  8    Sec. 4.  Section 513C.10, subsections 2 through 5, Code
  2  9 2001, are amended by striking the subsections.
  2 10    Sec. 5.  Section 514E.2, subsections 1, 2, and 13, Code
  2 11 2001, are amended to read as follows:
  2 12    1.  There is established a nonprofit corporation known as
  2 13 the The Iowa comprehensive health insurance association which
  2 14 is established as a nonprofit corporation.  The association
  2 15 shall assure that health insurance, as limited by sections
  2 16 514E.4 and 514E.5, is made available to each eligible Iowa
  2 17 resident and each federally eligible individual applying to
  2 18 the association for coverage.  The association shall also be
  2 19 responsible for administering the Iowa individual health
  2 20 benefit reinsurance association pursuant to all of the terms
  2 21 and conditions contained in chapter 513C.
  2 22    a.  All carriers as defined in section 514E.1, subsection
  2 23 3, and all organized delivery systems licensed by the director
  2 24 of public health providing health insurance or health care
  2 25 services in Iowa shall be members of the association.
  2 26    b.  The association shall operate under a plan of operation
  2 27 established and approved under subsection 3 and shall exercise
  2 28 its powers through a board of directors established under this
  2 29 section.
  2 30    2.  The board of directors of the association shall consist
  2 31 of four of all of the following:
  2 32    a.  Four members who shall be representatives of the four
  2 33 largest domestic carriers of individual health insurance in
  2 34 the state as of the calendar year ending December 31, 2000,
  2 35 based on earned premium standards.
  3  1    b.  Three members who shall be representatives of the three
  3  2 largest carriers of health insurance in the state, based on
  3  3 earned premium standards, excluding Medicare supplement
  3  4 coverage premiums, that are not otherwise represented.
  3  5    c.  Four members selected by the members of the
  3  6 association, two of whom shall be representatives from
  3  7 corporations operating pursuant to chapter 514 on July 1,
  3  8 1989, or any successors in interest, and two of whom shall be
  3  9 representatives of organized delivery systems or insurers
  3 10 providing coverage pursuant to chapter 509 or 514A; four.
  3 11    d.  Four public members selected by the governor; the.
  3 12    e.  The commissioner or the commissioner's designee from
  3 13 the division of insurance; and two.
  3 14    f.  Two members of the general assembly, one of whom shall
  3 15 be appointed by the speaker of the house and one of whom shall
  3 16 be appointed by the president of the senate, after
  3 17 consultation with the majority leader and the minority leader
  3 18 of the senate, who shall be ex officio, and nonvoting members.
  3 19    PARAGRAPH DIVIDED.  The composition of the board of
  3 20 directors shall be in compliance with sections 69.16 and
  3 21 69.16A.  The governor's appointees shall be chosen from a
  3 22 broad cross-section of the residents of this state.
  3 23    Members of the board may be reimbursed from the moneys of
  3 24 the association for expenses incurred by them as members, but
  3 25 shall not be otherwise compensated by the association for
  3 26 their services.
  3 27    13.  A member who, after July 1, 1986 2001, has paid one or
  3 28 more assessments levied under this chapter or chapter 513C may
  3 29 take a credit against the premium taxes, or similar taxes,
  3 30 upon revenues or income of the member that are imposed by the
  3 31 state on health insurance premiums pursuant to chapter 432 or
  3 32 payments subject to taxation under section 514B.31, up to the
  3 33 amount of twenty percent of those taxes due, for each of the
  3 34 five calendar years following the year for which an assessment
  3 35 was paid, or until the aggregate of those assessments has been
  4  1 offset by credits against those taxes if this occurs first.
  4  2 If a member ceases doing business, all uncredited assessments
  4  3 may be credited against its premium tax liability for the year
  4  4 it ceases doing business.  
  4  5                           EXPLANATION
  4  6    This bill amends sections of Code chapters 513C and 514E,
  4  7 dealing with the Iowa individual health benefit reinsurance
  4  8 association and the Iowa comprehensive health insurance
  4  9 association, respectively.
  4 10    The bill amends Code section 513C.10 to exclude from
  4 11 membership in the Iowa individual health benefit reinsurance
  4 12 association entities that establish plans under Code chapter
  4 13 509A, the chapter that addresses group insurance for public
  4 14 employees.  The bill also amends the definition of "carrier"
  4 15 in Code section 513C.3 to exclude the same entities from the
  4 16 definition.
  4 17    The bill also amends Code section 513C.10 to provide that
  4 18 the board of directors governing the Iowa individual health
  4 19 benefit reinsurance association is established under Code
  4 20 chapter 514E, rather than under Code section 513C.10, and also
  4 21 divides existing language into paragraphs.  A similar change
  4 22 is made to Code section 513C.5 regarding the reference to Code
  4 23 chapter 514E.  Code section 513C.5 also deletes a reference to
  4 24 a study that the commissioner has completed.
  4 25    The bill deletes subsections of Code section 513C.10 that
  4 26 address the board of directors for the Iowa individual health
  4 27 benefit reinsurance association.
  4 28    The bill amends Code section 514E.2 to provide that the
  4 29 Iowa comprehensive health insurance association shall be
  4 30 responsible for administering the Iowa individual health
  4 31 benefit reinsurance association pursuant to all of the terms
  4 32 and conditions contained in Code chapter 513C.  The bill also
  4 33 divides existing language into paragraphs.
  4 34    The bill also amends Code section 514E.2 regarding the
  4 35 composition of the board of directors of the Iowa individual
  5  1 health benefit reinsurance association, resulting in a merger
  5  2 of the boards of the Iowa comprehensive health insurance
  5  3 association and the Iowa individual health benefit reinsurance
  5  4 association.  The bill adds as member representatives the four
  5  5 largest domestic carriers of the individual health insurance
  5  6 in the state as of the calendar year ending December 31, 2000,
  5  7 measured by an earned premium standard, and representatives of
  5  8 the three largest carriers of health insurance in the state,
  5  9 measured by an earned premium standard, excluding Medicare
  5 10 supplement coverage premiums, that are not otherwise
  5 11 represented.  These are the same groups deleted under Code
  5 12 section 513C.10 as the board of directors for the Iowa
  5 13 individual health benefit reinsurance association.  The bill
  5 14 also divides existing language into paragraphs.
  5 15    The bill also amends Code section 514E.2 to provide that a
  5 16 credit against the premium taxes, or similar taxes, is
  5 17 available to members who have paid one or more assessments
  5 18 levied under Code chapter 514E or Code chapter 513C after July
  5 19 1, 2001, rather than just under Code chapter 514E.  
  5 20 LSB 1772SC 79
  5 21 jj/gg/8
     

Text: SSB01117                          Text: SSB01119
Text: SSB01100 - SSB01199               Text: SSB Index
Bills and Amendments: General Index     Bill History: General Index

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