HOUSE FILE 2256

BY  KELLEY

A BILL FOR

An Act concerning notice to employees or members of the termination or substantial modification of their group accident or health insurance.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 509B.5, subsection 2, Code 2011, is amended to read as follows:
   2.  If an employer or group policyholder terminates or substantially modifies an agreement to provide accident or health insurance for employees or members or if accident or health insurance for employees or members is terminated for failure to pay premiums or for another reason, the employer or group policyholder shall notify the employees or members, including persons being continued under the policy’s continuation provisions, of the termination or substantial modification of their coverage. The notice shall be in writing and delivered in person to the entitled persons or mailed to their last known addresses at least ten
 
thirty days prior to the termination or substantial modification of the accident or health insurance coverage. The employer or group policyholder is solely liable for benefits, including extended benefits, other than extended benefits for which the insurer is liable in accordance with the provisions of the group policy, which would have been payable had the accident or health insurance remained in force or not been terminated or substantially modified during the period of time following the termination or substantial modification until the person entitled to notice is given notice by the employer or group policyholder as required by this subsection.
EXPLANATION
   This bill provides that when an agreement to provide accident or health insurance for employees or members is terminated or substantially modified, the employer or group policyholder must provide written notification of the termination or modification to the employees or members at least 30, instead of 10, days before the change occurs.