S.F. _____ Section 1. Section 514E.1, Code 2011, is amended by adding 1 the following new subsection: 2 NEW SUBSECTION . 12A. “HIPIOWA-FED” means the limited 3 liability company organized by the association for the 4 purposes of administering the state of Iowa temporary high-risk 5 insurance pool program pursuant to a contract with the United 6 States department of health and human services. 7 Sec. 2. Section 514E.2, subsection 7, Code 2011, is amended 8 by adding the following new paragraph: 9 NEW PARAGRAPH . 0b. Following the close of each calendar 10 year, HIPIOWA-FED shall determine the net premiums and 11 payments, the expenses of administration, and the incurred 12 losses of the program for the year. HIPIOWA-FED shall certify 13 the amount of any net loss for the preceding calendar year to 14 the commissioner of insurance and director of revenue and to 15 the United States department of health and human services. In 16 the event that additional federal funding is not provided to 17 HIPIOWA-FED to offset the loss, the loss shall be assessed by 18 the association on behalf of HIPIOWA-FED to all members of the 19 association in proportion to their respective shares of total 20 health insurance premiums or payments for subscriber contracts 21 received in Iowa during the second preceding calendar year, or 22 with paid losses in the year, coinciding with or ending during 23 the calendar year or on any other equitable basis as provided 24 in the plan of operation of the association or as required by 25 the United States department of health and human services. In 26 sharing losses, the association, on behalf of HIPIOWA-FED, may 27 abate or defer in any part the assessment of a member, if, in 28 the opinion of the board of the association, payment of the 29 assessment would endanger the ability of the member to fulfill 30 its contractual obligations. The association, on behalf 31 of HIPIOWA-FED, may also provide for an initial or interim 32 assessment against members of the association if necessary to 33 assure the financial capability of HIPIOWA-FED to meet the 34 incurred or estimated claims expenses or operating expenses of 35 -1- LSB 6003XC (6) 84 av/nh 1/ 4

S.F. _____ the temporary high-risk insurance pool program until the next 1 calendar year is completed. Net gains, if any, must be held at 2 interest to offset future losses or allocated to reduce future 3 premiums. 4 Sec. 3. Section 514E.2, Code 2011, is amended by adding the 5 following new subsections: 6 NEW SUBSECTION . 12A. The association shall be considered a 7 governmental body for purposes of chapter 21 and a government 8 body for purposes of chapter 22. A person to whom the 9 association delegates the duties and powers of the association 10 shall be considered a governmental body for purposes of chapter 11 21 and a government body for purposes of chapter 22 to the 12 extent that the person carries out the powers and duties of the 13 association. 14 NEW SUBSECTION . 12B. HIPIOWA-FED shall be considered a 15 governmental body for purposes of chapter 21 and a government 16 body for purposes of chapter 22. A person to whom the duties 17 and powers of the limited liability company are delegated shall 18 be considered a governmental body for purposes of chapter 19 21 and a government body for purposes of chapter 22 to the 20 extent that the person carries out the powers and duties of the 21 limited liability company. 22 Sec. 4. REQUEST FOR WAIVER OF CONTRACT PROVISIONS BY 23 HIPIOWA-FED. Within thirty days after the effective date of 24 this Act, HIPIOWA-FED, the limited liability company organized 25 by the Iowa comprehensive health insurance association for the 26 purpose of administering the state of Iowa temporary high-risk 27 insurance pool program pursuant to a contract with the United 28 State department of health and human services, shall request 29 a waiver from the United States department of health and 30 human services from the requirements of the contract between 31 HIPIOWA-FED and the department to allow HIPIOWA-FED to accept 32 third-party payment of premiums for an individual enrolled in 33 the program. 34 Sec. 5. EFFECTIVE UPON ENACTMENT. This Act, being deemed of 35 -2- LSB 6003XC (6) 84 av/nh 2/ 4

S.F. _____ immediate importance, takes effect upon enactment. 1 EXPLANATION 2 This bill relates to HIPIOWA-FED, a limited liability 3 company organized by the Iowa comprehensive health insurance 4 association for the purpose of administering the state of 5 Iowa temporary high-risk insurance pool program pursuant to a 6 contract with the United States department of health and human 7 services. The bill provides that both the Iowa comprehensive 8 health insurance association and HIPIOWA-FED shall be 9 considered governmental bodies for purposes of Iowa’s open 10 meetings law and government bodies for purposes of Iowa’s open 11 records law and must meet the requirements of those provisions. 12 A person to whom the association or HIPIOWA-FED delegates its 13 duties and powers is also subject to the requirements of the 14 open records law and the open meetings law to the extent that 15 the person carries out those powers and duties. 16 The bill also provides that HIPIOWA-FED must determine its 17 net premiums and payments, the expenses of administration, and 18 the incurred losses of the program at the end of each year 19 and certify the amount of any net loss to the commissioner of 20 insurance and the director of revenue and to the United States 21 department of health and human services. If additional federal 22 funding is not provided to HIPIOWA-FED to offset the loss, the 23 loss shall be assessed to members of the Iowa comprehensive 24 health insurance association in the same manner as assessments 25 are made for losses incurred by the state high-risk pool. 26 Members of the association subject to this assessment include 27 all health insurers, health maintenance organizations, and 28 organized delivery systems licensed by the director of public 29 health, providing individual and group health insurance or 30 health care services in the state. An insurer that is subject 31 to the assessment is eligible to offset the assessment paid 32 pursuant to Code chapter 514E against the insurer’s premium tax 33 liability owed pursuant to Code chapter 432. 34 The bill also requires HIPIOWA-FED to request a waiver from 35 -3- LSB 6003XC (6) 84 av/nh 3/ 4

S.F. _____ the United States department of health and human services from 1 the requirements of the contract between HIPIOWA-FED and the 2 department to allow HIPIOWA-FED to accept third-party payment 3 of premiums for an individual enrolled in insurance through the 4 HIPIOWA-FED program. The bill is effective upon enactment and 5 the request for a waiver must be made within 30 days after the 6 effective date of the bill. 7 -4- LSB 6003XC (6) 84 av/nh 4/ 4