House File 420 - Introduced



                                       HOUSE FILE       
                                       BY  QUIRK

                                       (COMPANION TO LSB 2328SS
                                        BY RIELLY)


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

                                      A BILL FOR

  1 An Act allowing small business wellness and disease management
  2    initiatives, and providing an effective date.
  3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  4 TLSB 2328HH 82
  5 av/cf/24

PAG LIN



  1  1    Section 1.  Section 513B.4, Code 2007, is amended by adding
  1  2 the following new subsection:
  1  3    NEW SUBSECTION.  6.  Notwithstanding subsection 4, a small
  1  4 employer carrier may offer to transfer a small employer into a
  1  5 different class of business with a lower index rate based upon
  1  6 claims experience, implementation of managed care or wellness
  1  7 programs, or health status improvement of the small employer
  1  8 since issue.
  1  9    Sec. 2.  NEW SECTION.  513B.4B  SMALL EMPLOYER INCENTIVES
  1 10 == SUSPENSION OR MODIFICATION OF PREMIUM RATE RESTRICTIONS.
  1 11    1.  In order to encourage voluntary participation in
  1 12 wellness or disease management programs, a small employer
  1 13 carrier may offer premium credits or discounts to a small
  1 14 employer for the benefit of eligible employees of that small
  1 15 employer who participate in such a program.  An employee shall
  1 16 not be penalized in any way for not participating in such a
  1 17 program.
  1 18    2.  The commissioner shall adopt, by rule or order,
  1 19 provisions allowing suspension or modification of premium rate
  1 20 restrictions to enable a small employer carrier to provide
  1 21 premium credits or discounts to a small employer based on
  1 22 measurable reductions in costs of that small employer,
  1 23 including but not limited to tobacco use cessation,
  1 24 participation in established wellness or disease management
  1 25 programs, and reduced administrative or distribution costs.
  1 26    Sec. 3.  EFFECTIVE DATE.  This Act, being deemed of
  1 27 immediate importance, takes effect upon enactment.
  1 28                           EXPLANATION
  1 29    This bill authorizes small business wellness and disease
  1 30 management initiatives.  Code section 513B.4 is amended to
  1 31 allow a small employer carrier to transfer a small employer
  1 32 into a different class of business with a lower index rate
  1 33 based upon claims experience, implementation of managed care
  1 34 or wellness programs, or health status improvement of the
  1 35 small employer since issuance of the policy.
  2  1    New Code section 513B.4B allows a small employer carrier to
  2  2 offer premium credits or discounts to a small employer for the
  2  3 benefit of eligible employees of that employer who voluntarily
  2  4 participate in wellness or disease management programs.  The
  2  5 bill requires the commissioner of insurance to adopt rules or
  2  6 orders allowing suspension or modification of premium rate
  2  7 restrictions to enable a small employer carrier to provide
  2  8 such premium credits or discounts to a small employer based on
  2  9 measurable reductions in costs of that small employer,
  2 10 including but not limited to tobacco use cessation,
  2 11 participation in established wellness or disease management
  2 12 programs, and reduced administrative or distribution costs.
  2 13 The bill prohibits an employee from being penalized in any way
  2 14 for not participating in a wellness or disease management
  2 15 program.
  2 16    The bill takes effect upon enactment.
  2 17 LSB 2328HH 82
  2 18 av:rj/cf/24