House Amendment 1002
PAG LIN
1 1 Amend House File 1 as follows:
1 2 #1. Page 1, by inserting before line 1 the
1 3 following:
1 4 <DIVISION I
1 5 MINIMUM HOURLY WAGE REQUIREMENTS>
1 6 #2. Page 1, by inserting after line 35 the
1 7 following:
1 8 <DIVISION II
1 9 ASSOCIATION GROUP HEALTH CARE PLANS
1 10 Sec. . Section 509.1, Code 2007, is amended by
1 11 adding the following new subsection:
1 12 NEW SUBSECTION. 7A. A policy of group health
1 13 insurance coverage, as defined in section 513B.2,
1 14 issued by a small employer carrier, as defined in
1 15 section 513B.2, to a bona fide association, subject to
1 16 the following requirements:
1 17 a. The policy provides group health insurance
1 18 coverage to eligible employees of members of a bona
1 19 fide association that are small employers as defined
1 20 in section 513B.2, and to the spouses and dependents
1 21 of such employees.
1 22 b. The policy is issued to a bona fide
1 23 association. For the purposes of this subsection, a
1 24 bona fide association is an association which meets
1 25 all of the following requirements:
1 26 (1) The association is a trade, industry, or
1 27 professional association which is organized in good
1 28 faith as a nonprofit corporation under chapter 504 for
1 29 purposes other than obtaining insurance and has been
1 30 in existence and actively maintained for at least five
1 31 continuous years at the time the policy is issued.
1 32 (2) The association does not condition membership
1 33 in the association on the health status of employees
1 34 of its members or the health status of the spouses and
1 35 dependents of such employees.
1 36 (3) Group health insurance coverage offered by the
1 37 association is available to all eligible employees of
1 38 its members that are small employers as defined in
1 39 section 513B.2 who choose to participate in the health
1 40 insurance coverage offered, and to the spouses and
1 41 dependents of such employees, regardless of the health
1 42 status of such employees or their spouses and
1 43 dependents.
1 44 (4) Group health insurance coverage offered by the
1 45 association is available only to persons who are
1 46 eligible employees of a small employer as defined in
1 47 section 513B.2 that is a member of the association, or
1 48 to the spouses or dependents of such employees.
1 49 Sec. . Section 509.1, subsection 8, unnumbered
1 50 paragraph 1, Code 2007, is amended to read as follows:
2 1 A policy issued to a resident of this state under a
2 2 group life, accident, or health insurance policy
2 3 issued to a group other than one described in
2 4 subsections 1 through 7 7A, subject to the following
2 5 requirements:
2 6 Sec. . Section 513B.2, subsection 6, paragraph
2 7 a, subparagraph (3), Code 2007, is amended by striking
2 8 the subparagraph and inserting in lieu thereof the
2 9 following:
2 10 (3) The coverages are provided by a policy of
2 11 group health insurance coverage through a bona fide
2 12 association as provided in section 509.1, subsection
2 13 7A, which meets the requirements for a class of
2 14 business under section 513B.4. A small employer
2 15 carrier may condition coverages under such a policy of
2 16 group health insurance coverage on any of the
2 17 following requirements:
2 18 (a) Minimum levels of participation by employees
2 19 of each member of a bona fide association that offers
2 20 the coverage to its employees.
2 21 (b) Minimum levels of contribution by each member
2 22 of a bona fide association that offers the coverage to
2 23 its employees.
2 24 (c) A specified policy term, subject to annual
2 25 premium rate adjustments as permitted by section
2 26 513B.4.
2 27 Sec. . Section 513B.2, subsection 6, paragraph
2 28 a, Code 2007, is amended by adding the following new
2 29 subparagraph:
2 30 NEW SUBPARAGRAPH. (4) The coverages are provided
2 31 by a policy of group health insurance coverage through
2 32 two or more bona fide associations as provided in
2 33 section 509.1, subsection 7A, which a small employer
2 34 carrier has aggregated as a distinct grouping that
2 35 meets the requirements for a class of business under
2 36 section 513B.4. After a distinct grouping of bona
2 37 fide associations is established as a class of
2 38 business, the small group carrier shall not remove a
2 39 bona fide association from the class based on the
2 40 claims experience of that association. A small
2 41 employer carrier may condition coverages under such a
2 42 policy of group health insurance coverage on any of
2 43 the following requirements:
2 44 (a) Minimum levels of participation by employees
2 45 of each member of a bona fide association in the class
2 46 that offers the coverage to its employees.
2 47 (b) Minimum levels of contribution by each member
2 48 of a bona fide association in the class that offers
2 49 the coverage to its employees.
2 50 (c) A specified policy term, subject to annual
3 1 premium rate adjustments as permitted by section
3 2 513B.4.
3 3 Sec. . Section 513B.2, subsection 6, paragraph
3 4 b, Code 2007, is amended to read as follows:
3 5 b. A small employer carrier may establish no more
3 6 than two additional groupings under each of the
3 7 subparagraphs in paragraph "a" on the basis of
3 8 underwriting criteria which are expected to produce
3 9 substantial variation in the health care costs.
3 10 DIVISION III
3 11 WELLNESS INITIATIVES
3 12 Sec. . Section 513B.4, Code 2007, is amended by
3 13 adding the following new subsection:
3 14 NEW SUBSECTION. 6. Notwithstanding subsection 4,
3 15 a small employer carrier may offer to transfer a small
3 16 employer into a different class of business with a
3 17 lower index rate based upon claims experience,
3 18 implementation of managed care or wellness programs,
3 19 or health status improvement of the small employer
3 20 since issue.
3 21 Sec. . NEW SECTION. 513B.4B SMALL EMPLOYER
3 22 INCENTIVES == SUSPENSION OR MODIFICATION OF PREMIUM
3 23 RATE RESTRICTIONS.
3 24 1. In order to encourage voluntary participation
3 25 in wellness or disease management programs, a small
3 26 employer carrier may offer premium credits or
3 27 discounts to a small employer for the benefit of
3 28 eligible employees of that small employer who
3 29 participate in such a program. An employee shall not
3 30 be penalized in any way for not participating in such
3 31 a program.
3 32 2. The commissioner shall adopt, by rule or order,
3 33 provisions allowing suspension or modification of
3 34 premium rate restrictions to enable a small employer
3 35 carrier to provide premium credits or discounts to a
3 36 small employer based on measurable reductions in costs
3 37 of that small employer, including but not limited to
3 38 tobacco use cessation, participation in established
3 39 wellness or disease management programs, and reduced
3 40 administrative or distribution costs.
3 41 DIVISION IV
3 42 EFFECTIVE DATE>
3 43 #3. Title page, line 1, by inserting after the
3 44 word <to> the following: <conditions of employment
3 45 including>.
3 46 #4. Title page, line 1, by inserting after the
3 47 word <requirements> the following: <, association
3 48 group health care plans, wellness initiatives,>.
3 49
3 50
4 1
4 2 KAUFMANN of Cedar
4 3
4 4
4 5
4 6 STRUYK of Pottawattamie
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4 8
4 9
4 10 VAN FOSSEN of Scott
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4 14 FORRISTALL of Pottawattamie
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4 18 MAY of Dickinson
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4 22 UPMEYER of Hancock
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4 25
4 26 PAULSEN of Linn
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4 28
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4 30 ALONS of Sioux
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4 32
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4 34 ANDERSON of Page
4 35
4 36
4 37
4 38 ARNOLD of Lucas
4 39
4 40
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4 42 BAUDLER of Adair
4 43
4 44
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4 46 BOAL of Polk
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4 48
4 49
4 50 CHAMBERS of O'Brien
5 1
5 2
5 3
5 4 CLUTE of Polk
5 5
5 6
5 7
5 8 DE BOEF of Keokuk
5 9
5 10
5 11
5 12 DEYOE of Story
5 13
5 14
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5 16 DOLECHECK of Ringgold
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5 18
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5 20 DRAKE of Pottawattamie
5 21
5 22
5 23
5 24 GIPP of Winneshiek
5 25
5 26
5 27
5 28 GRANZOW of Hardin
5 29
5 30
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5 32 GRASSLEY of Butler
5 33
5 34
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5 36 GREINER of Washington
5 37
5 38
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5 40 HUSEMAN of Cherokee
5 41
5 42
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5 44 JACOBS of Polk
5 45
5 46
5 47
5 48 HOFFMAN of Crawford
5 49
5 50
6 1
6 2 LUKAN of Dubuque
6 3
6 4
6 5
6 6 L. MILLER of Scott
6 7
6 8
6 9
6 10 S. OLSON of Clinton
6 11
6 12
6 13
6 14 RAECKER of Polk
6 15
6 16
6 17
6 18 RANTS of Woodbury
6 19
6 20
6 21
6 22 RASMUSSEN of Buchanan
6 23
6 24
6 25
6 26 RAYHONS of Hancock
6 27
6 28
6 29
6 30 ROBERTS of Carroll
6 31
6 32
6 33
6 34 SANDS of Louisa
6 35
6 36
6 37
6 38 SCHICKEL of Cerro Gordo
6 39
6 40
6 41
6 42 SODERBERG of Plymouth
6 43
6 44
6 45
6 46 TJEPKES of Webster
6 47
6 48
6 49
6 50 TOMENGA of Polk
7 1
7 2
7 3
7 4 TYMESON of Madison
7 5
7 6
7 7
7 8 VAN ENGELENHOVEN of Marion
7 9
7 10
7 11
7 12 WATTS of Dallas
7 13
7 14
7 15
7 16 WIENCEK of Black Hawk
7 17
7 18
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7 20 WINDSCHITL of Harrison
7 21
7 22
7 23
7 24 WORTHAN of Buena Vista
7 25 HF 1.702 82
7 26 av/gg/5470
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