Text: HF00413 Text: HF00415 Text: HF00400 - HF00499 Text: HF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN
1 1 Section 1. NEW SECTION. 509C.1 DEFINITIONS.
1 2 As provided in this chapter, unless the context otherwise
1 3 requires:
1 4 1. "Employer" means as defined in section 91A.2.
1 5 2. "Group health insurance" means insurance provided
1 6 pursuant to chapter 509, 509A, 509B, 513B, 514, or 514B.
1 7 3. "Labor commissioner" means the commissioner appointed
1 8 pursuant to section 91.2.
1 9 Sec. 2. NEW SECTION. 509C.2 NOTIFICATION REQUIREMENT –
1 10 EMPLOYER LIABILITY.
1 11 1. An employer shall notify employees in writing that any
1 12 applicable group health insurance will be canceled at least
1 13 thirty days prior to the date of cancellation.
1 14 a. The employer's obligation to notify under this
1 15 subsection applies when the employer intends to cancel the
1 16 group health insurance, as well as when the employer is aware
1 17 that the group health insurance will be canceled or will lapse
1 18 for any other reason, including failure to pay premiums or
1 19 deductibles.
1 20 b. If the employer becomes aware that the group health
1 21 insurance will be canceled or will lapse less than thirty days
1 22 prior to the date of cancellation or lapse, then the employer
1 23 shall notify employees as soon as possible, but in no event
1 24 later than two days after the employer became aware of the
1 25 cancellation or lapse.
1 26 c. An employer may satisfy the notice provisions of this
1 27 subsection by posting a prominent notice on an employee
1 28 bulletin board located in the workplace, in accordance with
1 29 rules issued by the labor commissioner.
1 30 2. An employer shall be liable for employee medical bills
1 31 incurred during any time period when the group health
1 32 insurance is canceled or lapsed, and denied for reimbursement
1 33 by the insurer, and prior to notice being given to employees.
1 34 The labor commissioner may seek recovery for the medical bills
1 35 from the employer as if the unreimbursed medical bills were
2 1 unpaid wages under chapter 91A.
2 2 EXPLANATION
2 3 This bill enacts new Code chapter 509C, requiring
2 4 notification by employers to employees prior to cancellation
2 5 of group insurance coverage. The bill requires a minimum of
2 6 30 days' notice prior to cancellation, including for
2 7 cancellation or lapse due to nonpayment of premiums or
2 8 deductibles. However, if the employer becomes aware of an
2 9 impending lapse or cancellation less than 30 days prior to the
2 10 date of the cancellation or lapse, the employer must give
2 11 notice to the employees as soon as possible, but in no event
2 12 later than two days after learning of the impending
2 13 cancellation or lapse.
2 14 The notice requirement may be satisfied by means of posting
2 15 on an employee bulletin board in the workplace, pursuant to
2 16 rule.
2 17 If the insurance is canceled or lapses and the employee
2 18 incurred unreimbursed medical bills prior to receiving
2 19 notification from the employer, the labor commissioner may
2 20 seek reimbursement for the medical bills from the employer, as
2 21 if the bills were unpaid wages under Code chapter 91A.
2 22 The bill also defines "group insurance", "labor
2 23 commissioner", and "employer".
2 24 LSB 2845HH 80
2 25 jj/cl/14
Text: HF00413 Text: HF00415 Text: HF00400 - HF00499 Text: HF Index Bills and Amendments: General Index Bill History: General Index
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