Senate File 2246 - Introduced
SENATE FILE
BY BOLKCOM, DVORSKY, DANIELSON,
HATCH, SCHOENJAHN, FRAISE,
COURTNEY, QUIRMBACH, KIBBIE,
and McCOY
Passed Senate, Date Passed House, Date
Vote: Ayes Nays Vote: Ayes Nays
Approved
A BILL FOR
1 An Act creating the fair share health care fund and providing for
2 assessments, penalties, and an appropriation.
3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
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PAG LIN
1 1 Section 1. NEW SECTION. 249A.35 FAIR SHARE HEALTH CARE
1 2 FUND.
1 3 1. DEFINITIONS. As used in this section, unless the
1 4 context otherwise requires:
1 5 a. "Employee" means a natural person who is employed in
1 6 this state for wages by an employer on a full=time or part=
1 7 time basis. "Employee" does not include employees of the
1 8 federal government, the state, another state, a political
1 9 subdivision of another state, or a political subdivision of
1 10 this state.
1 11 b. "Health care expenditures" means the amount paid by an
1 12 employer to provide health care benefits or reimburse
1 13 employees for their health care costs, including but not
1 14 limited to payments for medical care, prescription drugs,
1 15 vision care, and medical savings accounts.
1 16 c. "Wages" means compensation owed by an employer for
1 17 labor or services rendered by an employee, whether determined
1 18 on a time, task, piece, commission, or other basis of
1 19 calculation.
1 20 2. DIRECTOR'S ANNUAL REPORT.
1 21 a. Beginning on January 1, 2007, and annually thereafter,
1 22 the director shall compile information as of December 31 of
1 23 the previous year, concerning the number of full=time and
1 24 part=time employees in the state who receive benefits under
1 25 the medical assistance program under this chapter or who have
1 26 dependents who receive benefits under the healthy and well
1 27 kids in Iowa program under chapter 514I and the name of the
1 28 employer of such employees.
1 29 b. (1) The director shall submit an annual report not
1 30 later than March 15 to the governor, the general assembly, and
1 31 the legislative services agency that contains a summarization
1 32 of information compiled by the director pursuant to paragraph
1 33 "a".
1 34 (2) The director, in consultation with the department of
1 35 workforce development, shall also include information in the
2 1 annual report about any employer that has eight thousand or
2 2 more employees in the state including all of the following
2 3 information compiled as of December 31 of the previous year:
2 4 (a) The name of the employer.
2 5 (b) The employer's definition of full=time and part=time
2 6 employee.
2 7 (c) The number of full=time and part=time employees in the
2 8 state of the employer.
2 9 (d) The percentage of total wages that the employer spent
2 10 on health care expenditures for its employees in the state,
2 11 excluding wages paid to employees enrolled in or eligible for
2 12 Medicare.
2 13 4. FAIR SHARE HEALTH CARE FUND == ASSESSMENT == MEDICAL
2 14 ASSISTANCE PROGRAM.
2 15 a. An employer that has eight thousand or more employees
2 16 in the state as of December 31 of the previous year and that
2 17 spent less than an amount equal to nine percent of the total
2 18 amount of wages paid by that employer to employees in the
2 19 state in the previous year, excluding wages paid to employees
2 20 who were enrolled in or eligible for Medicare, on health care
2 21 expenditures for those employees, is assessed and shall pay to
2 22 the director an amount equal to the difference between the
2 23 amount the employer spent for such health care expenditures
2 24 and nine percent of total wages paid as set forth in this
2 25 paragraph.
2 26 b. The director shall determine the means and method of
2 27 collecting the assessments by rules adopted under chapter 17A.
2 28 All moneys collected by the director pursuant to this
2 29 subsection shall be forwarded to the treasurer of state, who
2 30 shall deposit the moneys in a fair share health care fund
2 31 created in the state treasury under the control of the
2 32 director. The moneys deposited in the fund are appropriated
2 33 and shall be used only for the purposes of the medical
2 34 assistance program as defined in this chapter.
2 35 Notwithstanding section 12C.7, subsection 2, interest or
3 1 earnings on moneys that are deposited in the fund shall be
3 2 credited to the fund, and notwithstanding section 8.33, moneys
3 3 credited to the fund shall not revert to the general fund of
3 4 the state at the close of a fiscal year.
3 5 5. PENALTIES.
3 6 a. An employer that fails to pay the assessment as
3 7 required under subsection 4 is in violation of this section
3 8 and shall pay an administrative penalty of five hundred
3 9 thousand dollars.
3 10 b. Penalties assessed under this subsection shall be paid
3 11 to the director, who shall forward the moneys to the treasurer
3 12 of state for deposit in the fair share health care fund.
3 13 EXPLANATION
3 14 This bill creates the fair share health care fund, provides
3 15 for assessments of certain employers, makes an appropriation
3 16 of the assessments, and provides for penalties.
3 17 The bill applies to employers with 8,000 or more employees
3 18 in the state. The bill does not apply to the federal
3 19 government, the state, another state, or a political
3 20 subdivision of the state or another state.
3 21 Beginning on January 1, 2007, the director of the
3 22 department of human services is required to compile
3 23 information as of December 31 of the previous year concerning
3 24 the number of full=time and part=time employees in the state
3 25 who receive benefits under the medical assistance program
3 26 under Code chapter 249A or have dependents who receive
3 27 benefits under the healthy and well kids in Iowa program under
3 28 Code chapter 514I and the name of the employer of such
3 29 employees.
3 30 The director of human services is required to submit an
3 31 annual report to the governor, the general assembly, and the
3 32 legislative services agency, not later than March 15,
3 33 summarizing the information compiled as of December 31 of the
3 34 previous year. In addition, the director, in consultation
3 35 with the department of workforce development, is required to
4 1 include information in the report about any employer that has
4 2 8,000 or more employees in the state, including the name of
4 3 the employer, the employer's definition of full=time and part=
4 4 time employment, the number of full=time and part=time
4 5 employees in the state of the employer and the percentage of
4 6 total wages that the employer spent on health care
4 7 expenditures for employees in the state, excluding wages paid
4 8 to employees enrolled in or eligible for Medicare.
4 9 The bill creates the fair share health care fund under the
4 10 control of the director of human services. The bill requires
4 11 an employer that employs 8,000 or more employees in the state
4 12 and that spent less than an amount equal to 9 percent of the
4 13 amount of total wages paid to its employees in the state on
4 14 health care expenditures for those employees in the previous
4 15 year, to pay to the director an amount equal to the difference
4 16 between the amount the employer spent for such health care
4 17 expenditures and the amount equal to 9 percent of the amount
4 18 of total wages paid to its employees in the state, excluding
4 19 wages paid to employees enrolled in or eligible for Medicare.
4 20 The director of human services is required to adopt rules
4 21 to establish the means and method of collecting the
4 22 assessments and to forward all moneys collected to the
4 23 treasurer of state for deposit in the fair share health care
4 24 fund. The bill provides that the moneys in the fund are
4 25 appropriated and shall be used only for the purposes of the
4 26 medical assistance program as defined in Code chapter 249A.
4 27 Earnings and interest on moneys in the fund remain in the fund
4 28 and unused moneys in the fund do not revert to the general
4 29 fund of the state at the end of the fiscal year.
4 30 The bill provides that an employer that fails to pay the
4 31 required assessment is liable for an administrative penalty of
4 32 $500,000. Penalty payments are required to be deposited in
4 33 the fair share health care fund.
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