SSB 1086 (LSB 1763SC (3) 85)

SENATE FILE _____

BY  (PROPOSED COMMITTEE ON STATE GOVERNMENT BILL BY CHAIRPERSON DANIELSON)

A BILL FOR

An Act relating to health care coverage of certain nonstate public employees and officials and employees of nonprofit employers under the state health insurance plan and including effective date provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

PART 5

IOWA HEALTH CARE COVERAGE PARTNERSHIP PROGRAM
    Section 1.  NEW SECTION.  8A.471  Definitions.  
   As used in this part, unless the context otherwise requires:
   1.  “Nonprofit employer” means a nonprofit corporation that is either of the following and does not include a nonstate public employer:
   a.  A corporation subject to chapter 504.
   b.  A corporation which qualifies under 26 U.S.C. § 501(c)(3).
   2.  “Nonstate public employee” means any employee or elected official of a nonstate public employer.
   3.  “Nonstate public employer” means a political subdivision of the state, including a quasi-public agency.
   4.  “Political subdivision of the state” means a political subdivision of the state or its offices or units, including but not limited to a county, city, community college, or school district.
   5.  “State health or medical group insurance plan” or “state plan” means a health or medical group insurance plan for employees of the state.
    Sec. 2.  NEW SECTION.  8A.472  Nonstate public employees —— coverage.  
   1.  Nonstate public employees may obtain coverage under the state plan in accordance with this section.
   2.  A nonstate public employer may submit an application to the department for coverage under the state plan of all of such employer’s nonstate public employees. If a nonstate public employer submits such an application for coverage, the department shall provide such coverage no later than the first day of the third calendar month following such application.
   3.  Notwithstanding any other provisions of state law, initial participation in the state plan shall be a permissive subject of collective bargaining and shall be subject to binding arbitration only if the employee organization and the nonstate public employer mutually agree to bargain over such initial participation. Such mutual agreement shall be in writing and signed by the authorized representatives of the employee organization and the nonstate public employer. Continuation in the state plan, after initial participation, shall be a mandatory subject of bargaining, and shall be subject to binding arbitration in accordance with the same procedures and standards that apply to any other mandatory subject of bargaining pursuant to state law.
   4.  Premium rates for nonstate public employers shall be the total premium rate paid by the state inclusive of any premiums paid by state employees for the particular state health care product offered by the state plan.
    Sec. 3.  NEW SECTION.  8A.473  Employees of nonprofit employers —— coverage.  
   1.  Employees of nonprofit employers may obtain coverage under the state plan in accordance with this section.
   2.  A nonprofit employer may submit an application to the department for coverage under the state plan of all of such employer’s employees. If a nonprofit employer submits such an application for coverage, the department shall provide such coverage no later than the first day of the third calendar month following such application. However, the department shall not approve an application for coverage under the state plan if the department determines that approval of such coverage would cause the state plan to be subject to the requirements of the federal Employee Retirement Income Security Act of 1974, as codified at 29 U.S.C. § 1001 et seq. If the department determines that the state plan is compliant with such federal requirements, the department shall resume approval of applications for coverage under the state plan as provided in this section.
   3.  Premium rates for nonprofit employers shall be the total premium rate paid by the state inclusive of any premiums paid by state employees for the particular state health care product offered by the state plan.
    Sec. 4.  NEW SECTION.  8A.474  Premium payments —— administrative fees.  
   1.  A nonstate public employer or nonprofit employer participating in the state plan shall pay the monthly amount determined by the department, for coverage of its employees or elected officials as appropriate under the state plan. A nonstate public employer or nonprofit employer may require each covered employee or elected official to contribute a portion of the cost of such coverage under the state plan, subject to any collective bargaining obligation applicable to such employer. If any payment due by a nonstate public employer or nonprofit employer under this section is not timely paid, after the due date interest shall be added to such payment at the prevailing rate of interest, as determined by the department. Such interest shall be paid by the nonstate public employer or nonprofit employer.
   2.  The department shall charge a nonstate public employer or nonprofit employer participating in the state plan an administrative fee calculated on a per-month basis per covered employee or elected official.
   3.  Payments made pursuant to this section shall be deposited in the Iowa health care coverage partnership program trust fund created in section 8A.475. Moneys deposited in the Iowa health care coverage partnership program trust fund shall be expended for payment of insurance premiums and administrative fees for employees and elected officials covered under the state plan.
   4.  If a nonstate public employer fails to make premium payments as required under this section, the department may direct the treasurer of state, or any other office of the state that is the custodian of any moneys made available by reason of any grant, allocation, or appropriation by the state or state agencies payable to the nonstate public employer at any time subsequent to the failure of the nonstate public employer, to pay such premiums and interest that are due and unpaid and to withhold payment of moneys payable to the nonstate public employer until the amount of the premiums and interest then due and unpaid by the nonstate public employer has been paid to the state or until the treasurer of state determines that arrangements, satisfactory to the treasurer of state, have been made for the payment of such premiums and interest. However, such moneys shall not be withheld from a nonstate public employer if such withholding will adversely affect the receipt of any federal grant or aid in connection with such moneys. 
   5.  If a nonprofit employer fails to make premium payments, the department may terminate the nonprofit employer’s employee participation in the state plan and request the attorney general to recover any premiums and interest due and unpaid.
    Sec. 5.  NEW SECTION.  8A.475  Iowa health care coverage partnership program trust fund.
   1.  A separate, special Iowa health care coverage partnership program trust fund is created in the state treasury under the control of the department. The trust fund shall consist of all moneys deposited in the fund and other assets that must be held in trust and shall be used for the exclusive benefit of employees and elected officials covered under the state plan as provided in section 8A.474.
   2.  The director is the trustee of the fund and shall administer the fund. Any loss to the fund shall be charged against the trust and the director shall not be personally liable for such loss.
   3.  Moneys in the fund are not subject to section 8.33. Notwithstanding section 12C.7, subsection 2, interest or earnings on moneys in the fund shall be credited to the fund.
    Sec. 6.  NEW SECTION.  8A.476  Rules.
   The department, by rule, shall develop procedures for the implementation and administration of the provisions contained in this part 5.
    Sec. 7.  EFFECTIVE DATE.  This Act takes effect January 1, 2014.
EXPLANATION
   This bill allows employees and elected officials of a nonstate public employer, and employees of a nonprofit employer to apply for coverage and enroll in a state health or medical group insurance plan provided to state employees by the department of administrative services (DAS).
   Premium payments for coverage received through a state plan must be the same as for state employees, including any premiums paid by state employees.
   Each employer who participates in a state health or medical group insurance plan must pay monthly premium amounts for coverage to DAS, plus administrative fees calculated on a per-month basis per employee or elected official. An employer may require each covered employee or elected official to contribute a portion of the cost of such coverage under the state plan, subject to any collective bargaining obligations. The payments are to be deposited in the Iowa health care coverage partnership program trust fund created in Code section 8A.475 and expended for coverage being provided to the covered employees or elected officials.
   If monthly premium payments are not made, DAS may charge interest on the unpaid balance. If a nonstate public employer fails to make premium payments, DAS may direct the treasurer of state to withhold grants, allocations, or appropriations payable to the nonstate public employer, until the premium payments are made. If a nonprofit employer fails to make premium payments, DAS may terminate participation of that employer’s employees in the state plan and request the attorney general to recover the unpaid premiums and interest.
   For purposes of the program, a “nonstate public employer” is a political subdivision of the state, including but not limited to counties, cities, community colleges, quasi-public agencies, and school districts. A “nonprofit employer” is a corporation organized or recognized as a nonprofit corporation under state or federal law.
   The department of administrative services shall, by rule, adopt procedures to implement and administer the provisions of the bill.
   The bill takes effect January 1, 2014.