HF 2278 (LSB 5605YH (3) 84)

HOUSE FILE 2278

BY  HUNTER

A BILL FOR

An Act relating to health insurance participation requirements.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  NEW SECTION.  509.20  Health insurance participation requirements.
   1.  An employer shall not require an employee to accept group health insurance coverage pursuant to a group health insurance policy offered by the employer or as a condition of employment if the employee provides proof that the employee has creditable coverage as defined in section 513B.2. If the employee ceases to have creditable coverage, the employee shall have sixty days from the date that the creditable coverage ceases to provide proof that the employee has obtained creditable coverage before being required to accept group health insurance coverage offered by the employer.
   2.  In applying minimum participation requirements as a condition of providing group health insurance coverage to an employer, a carrier, as defined in section 513B.2, shall not consider an employee or dependents of an employee who have other creditable coverage in determining whether the applicable percentage of participation is met.
EXPLANATION
   This bill provides that an employee cannot be required to accept group health insurance coverage pursuant to a group health insurance policy offered by an employer or as a condition of employment if the employee provides proof of having creditable coverage. If the employee ceases to have creditable coverage, the employee has 60 days from the date that creditable coverage ceases to obtain creditable coverage before being required to accept group health insurance coverage offered by an employer. For purposes of the bill, “creditable coverage” means the same as defined in Code section 513B.2.
   The bill also provides that in applying minimum participation requirements as a condition of providing health insurance coverage to an employer, a carrier shall not consider an employee or dependents of an employee who have other creditable coverage in determining whether the applicable percentage of participation is met. For purposes of the bill, “carrier” means the same as defined in Code section 513B.2.