HOUSE FILE 2255

BY  KELLEY

A BILL FOR

An Act concerning the right of an employee or member to continue group accident or health insurance upon termination of employment or membership.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 509B.2, subsection 1, Code 2011, is amended to read as follows:
   1.  As used in this chapter, “termination of employment or membership” includes but is not limited to termination because of permanent or temporary layoff or approved leave of absence, including an absence or reduction in hours due to the injury or illness of the employee or member. A provision in this chapter which relates to termination of insurance under a group policy of an employee or member and the employee’s or member’s covered dependents includes termination of insurance with respect to the surviving or former spouse or children of an employee or member whose insurance would terminate because of dissolution or annulment of the marriage of the employee or member, or would terminate because of death of the employee or member.
EXPLANATION
   Code chapter 509B provides that an employee or member has the right to continue their group accident or health insurance which would otherwise terminate because of termination of the employment or membership. The bill specifies that a “termination of employment or membership” which triggers this right includes an absence or reduction in hours due to the injury or illness of the employee or member.