House File 586

                                   HOUSE FILE       
                                   BY  COMMITTEE ON COMMERCE,
                                       REGULATION AND LABOR

                                   (SUCCESSOR TO HF 444)


    Passed House,  Date               Passed Senate, Date             
    Vote:  Ayes        Nays           Vote:  Ayes        Nays         
                 Approved                            

                                      A BILL FOR

  1 An Act relating to notice of rate increases for group health
  2    insurance coverage.
  3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  4 TLSB 1977HV 80
  5 jj/cf/24

PAG LIN

  1  1    Section 1.  NEW SECTION.  509.20  NOTICE OF RATE INCREASE.
  1  2    1.  For purposes of this section, "policy or contract for
  1  3 group health benefit coverages, including a contract to
  1  4 provide services to a plan providing group health benefit
  1  5 coverages" applies to all of the following:
  1  6    a.  A group policy of health insurance under this chapter.
  1  7    b.  A plan established pursuant to chapter 509A for public
  1  8 employees.
  1  9    c.  A plan offered pursuant to chapter 513B.
  1 10    d.  A group contract of a nonprofit health service
  1 11 corporation under chapter 514.
  1 12    e.  A group plan of a health maintenance organization under
  1 13 chapter 514B.
  1 14    f.  An organized delivery system authorized under 1993 Iowa
  1 15 Acts, chapter 158, and licensed by the director of public
  1 16 health.
  1 17    g.  Preferred provider contracts limiting choice of
  1 18 specific provider.
  1 19    h.  Any other policy, contract, or plan for covering the
  1 20 health care costs of a defined group.
  1 21    2.  A person who issues a policy or contract for group
  1 22 health benefit coverages, including a contract to provide
  1 23 services to a plan providing group health benefit coverages to
  1 24 a group, shall provide notice of a rate increase for the
  1 25 policy or contract at least forty=five days prior to the
  1 26 effective date of the rate increase to the policyholder,
  1 27 contract holder, or sponsor of the group health benefit plan.
  1 28    Sec. 2.  Section 514.6, Code 2003, is amended to read as
  1 29 follows:
  1 30    514.6  RATES == APPROVAL BY COMMISSIONER == NOTICE OF
  1 31 INCREASE.
  1 32    1.  The rates charged by any such corporation to the
  1 33 subscribers for health care service shall at all times be
  1 34 subject to the approval of the commissioner of insurance.
  1 35    2.  A corporation offering health care services to
  2  1 subscribers pursuant to this chapter shall provide notice of a
  2  2 rate increase to subscribers at least forty=five days prior to
  2  3 the effective date of the rate increase.
  2  4                           EXPLANATION
  2  5    This bill amends various Code chapters dealing with certain
  2  6 types of health insurance to require a 45=day notice of rate
  2  7 increases in premiums.  The bill adds new Code section 509.20
  2  8 to require such notice for group health insurance policies,
  2  9 contracts, and plans.  Code section 514.6 addresses coverage
  2 10 provided by a nonprofit health service corporation.
  2 11 LSB 1977HV 80
  2 12 jj/cf/24