Amend House File 2339 as follows:
   1.  Page 11, after line 7 by inserting: 
   <Sec. ___.  Section 514E.1, Code 2011, is amended by adding the following new subsection:
   NEW SUBSECTION.  12A.  “HIPIOWA-FED” means the limited liability company organized by the association for the purposes of administering the state of Iowa temporary high-risk insurance pool program pursuant to a contract with the United States department of health and human services.
   Sec. ___.  Section 514E.2, subsection 2, Code 2011, is amended by striking the subsection and inserting in lieu thereof the following:
   2.
  a.  The board of directors of the association shall consist of seven voting members and seven nonvoting members. The voting members shall be appointed by the governor, subject to confirmation by the senate. The governor shall designate one voting member as chairperson and one as vice chairperson.
   b.  The voting members of the board of directors shall be appointed by the governor as follows:
   (1)  Two persons who represent the interests of small business from nominations made to the governor by nationally recognized groups that represent the interests of small business.
   (2)  Two persons who represent the interests of consumers from nominations made to the governor by nationally recognized groups that represent the interests of consumers.
   (3)  One person who is an insurance producer licensed under chapter 522B.
   (4)  One person who is a health care actuary or economist with expertise in health insurance.
   (5)  One person who is a health care provider.
   c.  The nonvoting members are as follows:
   (1)  The commissioner or the commissioner’s designee.
   (2)  The director of human services or the director’s designee.
   (3)  The director of public health or the director’s designee.
   (4)  Four members of the general assembly, one appointed by the speaker of the house of representatives, one appointed by the minority leader of the house of representatives, one appointed by the majority leader of the senate, and one appointed by the minority leader of the senate.
   d.  Meetings of the board of directors shall be held at the call of the chairperson or upon the request of at least two voting members. Four voting members shall constitute a quorum and the affirmative vote of four voting members shall be necessary for any action taken by the board.
   e.  The voting members of the board of directors shall be appointed for staggered terms of three years within sixty days after the effective date of this section of this Act and by December 15 of each year thereafter. The initial terms of the voting members of the board shall be staggered at the discretion of the governor. A voting member of the board is eligible for reappointment. The governor shall fill a vacancy on the board in the same manner as the original appointment for the remainder of the term.
   f.  Members of the board may be reimbursed from the moneys of the association for expenses incurred by them as members, but shall not be otherwise compensated by the association for their services.
   Sec. ___.  Section 514E.2, subsection 4, Code 2011, is amended to read as follows:
   4.
  a.  The plan of operation may provide that the powers and duties of the association may be delegated to a person who will perform functions similar to those of the association. A delegation under this section takes effect only upon the approval of both the board of directors and the commissioner. The commissioner shall not approve a delegation unless the protections afforded to the insured are substantially equivalent to or greater than those provided under this chapter.
   b.  A delegation made to a person pursuant to this subsection shall be subject to annual review by the government oversight standing committees of the general assembly. Within sixty days after the effective date of this section of this Act and annually thereafter, any person to whom the powers and duties of the association have been delegated pursuant to this subsection shall submit a report to the government oversight committees setting forth the following:
   (1)  The scope of the functions performed by the person. 
   (2)  Any contractual provisions between the person and the association or between the person and any other entity on behalf of the association.
   (3)  An accounting of the activities and services performed by the person on behalf of the association.
   (4)  An accounting of all payments made to the person by the association, including but not limited to an itemization of the services rendered and the amount of each payment apportioned to the performance of each activity or service.
   (5)  Any other information requested by the board of directors of the association, the commissioner of insurance, or the government oversight committees. 
   Sec. ___.  Section 514E.2, Code 2011, is amended by adding the following new subsection:
   NEW SUBSECTION.  5A.  The association shall accept third-party payment of premiums for an individual enrolled in health insurance coverage from the association.
   Sec. ___.  Section 514E.2, subsection 7, Code 2011, is amended by adding the following new paragraph:
   NEW PARAGRAPH.  0b.  Following the close of each calendar year, HIPIOWA-FED shall determine the net premiums and payments, the expenses of administration, and the incurred losses of the program for the year. HIPIOWA-FED shall certify the amount of any net loss for the preceding calendar year to the commissioner of insurance and director of revenue and to the United States department of health and human services. In the event that additional federal funding is not provided to HIPIOWA-FED to offset the loss, the loss shall be assessed by the association on behalf of HIPIOWA-FED to all members of the association in proportion to their respective shares of total health insurance premiums or payments for subscriber contracts received in Iowa during the second preceding calendar year, or with paid losses in the year, coinciding with or ending during the calendar year or on any other equitable basis as provided in the plan of operation of the association or as required by the United States department of health and human services. In sharing losses, the association, on behalf of HIPIOWA-FED, may abate or defer in any part the assessment of a member, if, in the opinion of the board of the association, payment of the assessment would endanger the ability of the member to fulfill its contractual obligations. The association, on behalf of HIPIOWA-FED, may also provide for an initial or interim assessment against members of the association if necessary to assure the financial capability of HIPIOWA-FED to meet the incurred or estimated claims expenses or operating expenses of the temporary high-risk insurance pool program until the next calendar year is completed. Net gains, if any, must be held at interest to offset future losses or allocated to reduce future premiums.
   Sec. ___.  Section 514E.2, Code 2011, is amended by adding the following new subsections:
   NEW SUBSECTION.  12A.  The association shall be considered a governmental body for purposes of chapter 21 and a government body for purposes of chapter 22. A person to whom the association delegates the duties and powers of the association shall be considered a governmental body for purposes of chapter 21 and a government body for purposes of chapter 22 to the extent that the person carries out the powers and duties of the association.
   NEW SUBSECTION.  12B.  HIPIOWA-FED shall be considered a governmental body for purposes of chapter 21 and a government body for purposes of chapter 22. A person to whom the duties and powers of the limited liability company are delegated shall be considered a governmental body for purposes of chapter 21 and a government body for purposes of chapter 22 to the extent that the person carries out the powers and duties of the limited liability company.
   Sec. ___.  Section 514E.7, subsection 5, paragraph d, Code 2011, is amended by striking the paragraph.
   Sec. ___.  Section 514J.103, subsection 1, Code Supplement 2011, is amended to read as follows:
   1.  Except as provided in subsection 2, this chapter shall apply to all health carriers, including health carriers issuing a policy or certificate that provides coverage for dental care.
   Sec. ___.  Section 514J.103, subsection 2, paragraph a, Code Supplement 2011, is amended to read as follows:
   a.  A policy or certificate that provides coverage only for a specified disease, specified accident or accident-only, credit, disability income, hospital indemnity, long-term care, dental care, vision care, or any other limited supplemental benefit.>
   2.  Page 16, after line 17 by inserting: 
   <Sec. ___.  REQUEST FOR AMENDMENT OF CONTRACT PROVISIONS BY HIPIOWA-FED.  Within thirty days after enactment of the sections of this Act amending sections 514E.1 and 514E.2, HIPIOWA-FED, the limited liability company organized by the Iowa comprehensive health insurance association for the purpose of administering the state of Iowa temporary high-risk insurance pool program pursuant to a contract with the United States department of health and human services, shall request that the United States department of health and human services amend the requirements of the contract between HIPIOWA-FED and the department to allow HIPIOWA-FED to accept third-party payment of premiums for an individual enrolled in the program.>
   3.  Page 16, after line 21 by inserting: 
   <2.  The section of this Act amending section 514E.1.
   3.  The sections of this Act amending section 514E.2.>
   4.  By renumbering as necessary.

______________________________
PETTENGILL of Benton