Senate File 350
SENATE FILE
BY COMMITTEE ON COMMERCE
(SUCCESSOR TO SSB 1124)
Passed Senate, Date Passed House, Date
Vote: Ayes Nays Vote: Ayes Nays
Approved
A BILL FOR
1 An Act relating to a premium tax offset for the Iowa individual
2 health reinsurance association, and phasing=in a standing
3 appropriation for replacement of the individual health
4 reinsurance association assessments upon political
5 subdivisions and school corporations.
6 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
7 TLSB 2071SV 80
8 jj/cf/24
PAG LIN
1 1 Section 1. NEW SECTION. 509A.16 APPROPRIATION FOR
1 2 ASSESSMENTS LEVIED ON LOCAL GOVERNMENTS.
1 3 There is appropriated from the general fund of the state to
1 4 the Iowa individual health benefit reinsurance association
1 5 established pursuant to section 513C.10 the following amount
1 6 of the assessments due and owing, pursuant to section 513C.10,
1 7 from each political subdivision and school corporation for
1 8 health benefit plans:
1 9 1. For the fiscal year beginning July 1, 2006, twenty
1 10 percent of such assessments.
1 11 2. For the fiscal year beginning July 1, 2007, forty
1 12 percent of such assessments.
1 13 3. For the fiscal year beginning July 1, 2008, sixty
1 14 percent of such assessments.
1 15 4. For the fiscal year beginning July 1, 2009, eighty
1 16 percent of such assessments.
1 17 5. For the fiscal year beginning July 1, 2010, and
1 18 succeeding fiscal years, one hundred percent of such
1 19 assessments.
1 20 Sec. 2. Section 514E.2, subsection 13, Code 2003, is
1 21 amended to read as follows:
1 22 13. A member who, after July 1, 1986 2003, has paid one or
1 23 more assessments levied under this chapter or chapter 513C may
1 24 take a credit against the premium taxes, or similar taxes,
1 25 upon revenues or income of the member that are imposed by the
1 26 state on health insurance premiums pursuant to chapter 432 or
1 27 payments subject to taxation under section 514B.31, up to the
1 28 amount of twenty percent of those taxes due, for each of the
1 29 five calendar years following the year for which an assessment
1 30 was paid, or until the aggregate of those assessments has been
1 31 offset by credits against those taxes if this occurs first.
1 32 If a member ceases doing business, all uncredited assessments
1 33 may be credited against its premium tax liability for the year
1 34 it ceases doing business.
1 35 Sec. 3. INDIVIDUAL HEALTH INSURANCE TASK FORCE. The
2 1 insurance division of the department of commerce shall
2 2 establish an individual health insurance task force. The
2 3 individual health insurance task force shall conduct a study
2 4 to review the individual health insurance market reform under
2 5 chapter 513C and the Iowa comprehensive health insurance
2 6 association under chapter 514E. The study shall include
2 7 review of the following:
2 8 1. The premium rating system for the guaranteed basic and
2 9 standard plans regulated under chapter 513C and the
2 10 comprehensive health insurance plans under chapter 514E.
2 11 2. The availability of and qualifications for coverage
2 12 under the guaranteed basic and standard plans regulated under
2 13 chapter 513C and the comprehensive health insurance plans
2 14 under chapter 514E.
2 15 3. The cost=sharing and assessment mechanisms under
2 16 sections 513C.10 and 514E.2.
2 17 4. Any other matters as agreed upon by the task force
2 18 which affect the individual health insurance market.
2 19 The commissioner of insurance shall select the members of
2 20 the task force which shall include representatives from the
2 21 Iowa comprehensive health insurance association, the public
2 22 employee governing bodies subject to chapter 509A, and other
2 23 health insurance=related parties or experts as deemed
2 24 appropriate by the commissioner.
2 25 The commissioner shall submit a report from the task force
2 26 to the general assembly on or before January 15, 2004,
2 27 regarding the task force's findings and recommendations
2 28 including proposed legislation concerning individual health
2 29 insurance.
2 30 EXPLANATION
2 31 This bill amends Code section 514E.2 to provide for a
2 32 phased=in, graduated, five=year premium tax offset for the
2 33 individual health reinsurance association assessments paid by
2 34 health insurers and health plans. In conjunction, the bill
2 35 adds new Code section 509A.16, which establishes a five=year,
3 1 phased=in, graduated general fund appropriation to replace the
3 2 elimination of the individual health reinsurance association
3 3 assessments paid by self=funded government entities and school
3 4 districts.
3 5 The bill also requires the insurance division to establish
3 6 an individual health insurance task force to study individual
3 7 health insurance market reform and the Iowa comprehensive
3 8 health insurance association, including certain specific
3 9 issues. Members of the task force are to include
3 10 representatives from the insurance industry, public employees,
3 11 and health insurance=related parties or experts as
3 12 appropriate. The report from the task force is due to the
3 13 general assembly on or before January 15, 2004.
3 14 LSB 2071SV 80
3 15 jj/cf/24