House File 540
HOUSE FILE
BY PETERSEN
Passed House, Date Passed Senate, Date
Vote: Ayes Nays Vote: Ayes Nays
Approved
A BILL FOR
1 An Act relating to the establishment of pilot projects for
2 individual and group health insurance.
3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
4 TLSB 2082HH 80
5 jj/sh/8
PAG LIN
1 1 Section 1. GROUP HEALTH INSURANCE PILOT PROJECT == SMALL
1 2 EMPLOYERS AND NONPROFIT ENTITIES.
1 3 1. DEFINITIONS. For purposes of this section, unless the
1 4 context otherwise requires:
1 5 a. "Nonprofit entity" means an entity organized under the
1 6 provisions of chapter 504 or 504A, or an entity that qualifies
1 7 under 26 U.S.C. } 501(c)(3).
1 8 b. "Small employer" means as defined in section 513B.2.
1 9 2. PILOT PROJECTS.
1 10 a. The insurance division of the department of commerce
1 11 shall implement one or more pilot projects designed to examine
1 12 methods of improving the availability and affordability of
1 13 health insurance for individuals and group health insurance
1 14 for small employers and nonprofit entities, including child
1 15 day care centers. The division shall determine whether the
1 16 unique needs and characteristics of each group warrant
1 17 separate pilot projects.
1 18 b. The pilot projects shall be designed to gather
1 19 information regarding the feasibility of alternative types of
1 20 coverages, including but not limited to the following:
1 21 (1) Policies that provide only catastrophic coverage.
1 22 (2) Policies that offer very basic benefits that are not
1 23 subject to some or all of the existing coverage mandates under
1 24 the Code.
1 25 (3) Policies that offer a basic level of benefits plus an
1 26 option to choose additional benefits from a list of additional
1 27 coverages.
1 28 (4) Policies offering alternative types of coverage that
1 29 are restricted to individuals or groups that have been without
1 30 health insurance for a period of time.
1 31 3. PROGRESS REPORTS. The division shall determine the
1 32 design and scope of each pilot project, including the length
1 33 of time necessary to evaluate adequately the performance of
1 34 each pilot project, and shall provide periodic progress
1 35 reports to the general assembly, including when each pilot
2 1 project is launched and the expected duration. The first
2 2 progress report is due in January 2004, and at least annually
2 3 thereafter until each pilot project has been completed. Once
2 4 all pilot projects have been completed, the division shall
2 5 issue a final report to the general assembly regarding its
2 6 findings.
2 7 EXPLANATION
2 8 This bill provides for the development of pilot projects
2 9 for health insurance for individuals and group health
2 10 insurance for small employers and nonprofit entities by the
2 11 division of insurance, department of commerce, to examine
2 12 methods of improving availability and affordability. Specific
2 13 groups for pilot project focus are individuals, small
2 14 businesses, nonprofit entities, and child day care centers.
2 15 The division may determine whether separate pilot projects are
2 16 warranted for each group, or whether the groups may be
2 17 encompassed within one project. The division is also directed
2 18 to determine the design, scope, and time for the projects.
2 19 The division is directed to gather certain information,
2 20 including but not limited to that regarding the feasibility of
2 21 implementation of certain specific alternative coverages.
2 22 Periodic reporting to the general assembly, beginning in
2 23 January 2004, evaluating the performance of each pilot project
2 24 is required by the division, as well as a final report at the
2 25 conclusion of all pilot projects.
2 26 LSB 2082HH 80
2 27 jj/sh/8