Senate File 193 - Introduced SENATE FILE BY RIELLY (COMPANION TO LSB 2328HH BY QUIRK) Passed Senate, Date Passed House, 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 2328SS 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 2328SS 82 2 18 av:rj/cf/24