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