Senate Study Bill 1128 - Introduced 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 1 public employees and officials and employees of nonprofit 2 employers under the state health insurance plan and 3 including effective date provisions. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 1721SC (2) 86 av/rj

S.F. _____ PART 5 1 IOWA HEALTH CARE COVERAGE PARTNERSHIP PROGRAM 2 Section 1. NEW SECTION . 8A.471 Definitions. 3 As used in this part, unless the context otherwise requires: 4 1. “Nonprofit employer” means a nonprofit corporation that 5 is either of the following and does not include a nonstate 6 public employer: 7 a. A corporation subject to chapter 504. 8 b. A corporation which qualifies under 26 U.S.C. §501(c)(3). 9 2. “Nonstate public employee” means any employee or elected 10 official of a nonstate public employer. 11 3. “Nonstate public employer” means a political subdivision 12 of the state, including a quasi-public agency. 13 4. “Political subdivision of the state” means a political 14 subdivision of the state or its offices or units, including but 15 not limited to a county, city, community college, or school 16 district. 17 5. “State health or medical group insurance plan” or “state 18 plan” means a health or medical group insurance plan for 19 employees of the state. 20 Sec. 2. NEW SECTION . 8A.472 Nonstate public employees —— 21 coverage. 22 1. Nonstate public employees may obtain coverage under the 23 state plan in accordance with this section. 24 2. A nonstate public employer may submit an application 25 to the department for coverage under the state plan of all 26 of such employer’s nonstate public employees. If a nonstate 27 public employer submits such an application for coverage, the 28 department shall provide such coverage no later than the first 29 day of the third calendar month following such application. 30 3. Notwithstanding any other provisions of state law, 31 initial participation in the state plan shall be a permissive 32 subject of collective bargaining and shall be subject to 33 binding arbitration only if the employee organization and 34 the nonstate public employer mutually agree to bargain over 35 -1- LSB 1721SC (2) 86 av/rj 1/ 6

S.F. _____ such initial participation. Such mutual agreement shall be 1 in writing and signed by the authorized representatives of 2 the employee organization and the nonstate public employer. 3 Continuation in the state plan, after initial participation, 4 shall be a mandatory subject of bargaining, and shall be 5 subject to binding arbitration in accordance with the same 6 procedures and standards that apply to any other mandatory 7 subject of bargaining pursuant to state law. 8 4. Premium rates for nonstate public employers shall be the 9 total premium rate paid by the state inclusive of any premiums 10 paid by state employees for the particular state health care 11 product offered by the state plan. 12 Sec. 3. NEW SECTION . 8A.473 Employees of nonprofit 13 employers —— coverage. 14 1. Employees of nonprofit employers may obtain coverage 15 under the state plan in accordance with this section. 16 2. A nonprofit employer may submit an application to the 17 department for coverage under the state plan of all of such 18 employer’s employees. If a nonprofit employer submits such an 19 application for coverage, the department shall provide such 20 coverage no later than the first day of the third calendar 21 month following such application. However, the department 22 shall not approve an application for coverage under the 23 state plan if the department determines that approval of such 24 coverage would cause the state plan to be subject to the 25 requirements of the federal Employee Retirement Income Security 26 Act of 1974, as codified at 29 U.S.C. §1001 et seq. If the 27 department determines that the state plan is compliant with 28 such federal requirements, the department shall resume approval 29 of applications for coverage under the state plan as provided 30 in this section. 31 3. Premium rates for nonprofit employers shall be the total 32 premium rate paid by the state inclusive of any premiums paid 33 by state employees for the particular state health care product 34 offered by the state plan. 35 -2- LSB 1721SC (2) 86 av/rj 2/ 6

S.F. _____ Sec. 4. NEW SECTION . 8A.474 Premium payments —— 1 administrative fees. 2 1. A nonstate public employer or nonprofit employer 3 participating in the state plan shall pay the monthly amount 4 determined by the department, for coverage of its employees 5 or elected officials as appropriate under the state plan. A 6 nonstate public employer or nonprofit employer may require each 7 covered employee or elected official to contribute a portion 8 of the cost of such coverage under the state plan, subject 9 to any collective bargaining obligation applicable to such 10 employer. If any payment due by a nonstate public employer or 11 nonprofit employer under this section is not timely paid, after 12 the due date interest shall be added to such payment at the 13 prevailing rate of interest, as determined by the department. 14 Such interest shall be paid by the nonstate public employer or 15 nonprofit employer. 16 2. The department shall charge a nonstate public employer 17 or nonprofit employer participating in the state plan an 18 administrative fee calculated on a per-month basis per covered 19 employee or elected official. 20 3. Payments made pursuant to this section shall be deposited 21 in the Iowa health care coverage partnership program trust fund 22 created in section 8A.475. Moneys deposited in the Iowa health 23 care coverage partnership program trust fund shall be expended 24 for payment of insurance premiums and administrative fees for 25 employees and elected officials covered under the state plan. 26 4. If a nonstate public employer fails to make premium 27 payments as required under this section, the department may 28 direct the treasurer of state, or any other office of the state 29 that is the custodian of any moneys made available by reason of 30 any grant, allocation, or appropriation by the state or state 31 agencies payable to the nonstate public employer at any time 32 subsequent to the failure of the nonstate public employer, to 33 pay such premiums and interest that are due and unpaid and 34 to withhold payment of moneys payable to the nonstate public 35 -3- LSB 1721SC (2) 86 av/rj 3/ 6

S.F. _____ employer until the amount of the premiums and interest then 1 due and unpaid by the nonstate public employer has been paid 2 to the state or until the treasurer of state determines that 3 arrangements, satisfactory to the treasurer of state, have been 4 made for the payment of such premiums and interest. However, 5 such moneys shall not be withheld from a nonstate public 6 employer if such withholding will adversely affect the receipt 7 of any federal grant or aid in connection with such moneys. 8 5. If a nonprofit employer fails to make premium payments, 9 the department may terminate the nonprofit employer’s employee 10 participation in the state plan and request the attorney 11 general to recover any premiums and interest due and unpaid. 12 Sec. 5. NEW SECTION . 8A.475 Iowa health care coverage 13 partnership program trust fund. 14 1. A separate, special Iowa health care coverage 15 partnership program trust fund is created in the state treasury 16 under the control of the department. The trust fund shall 17 consist of all moneys deposited in the fund and other assets 18 that must be held in trust and shall be used for the exclusive 19 benefit of employees and elected officials covered under the 20 state plan as provided in section 8A.474. 21 2. The director is the trustee of the fund and shall 22 administer the fund. Any loss to the fund shall be charged 23 against the trust and the director shall not be personally 24 liable for such loss. 25 3. Moneys in the fund are not subject to section 8.33. 26 Notwithstanding section 12C.7, subsection 2, interest or 27 earnings on moneys in the fund shall be credited to the fund. 28 Sec. 6. NEW SECTION . 8A.476 Rules. 29 The department, by rule, shall develop procedures to 30 administer this part 5. 31 Sec. 7. EFFECTIVE DATE. This Act takes effect January 1, 32 2016. 33 EXPLANATION 34 The inclusion of this explanation does not constitute agreement with 35 -4- LSB 1721SC (2) 86 av/rj 4/ 6

S.F. _____ the explanation’s substance by the members of the general assembly. 1 This bill allows employees and elected officials of a 2 nonstate public employer, and employees of a nonprofit employer 3 to apply for coverage and enroll in a state health or medical 4 group insurance plan provided to state employees by the 5 department of administrative services (DAS). 6 Premium payments for coverage received through a state plan 7 must be the same as for state employees, including any premiums 8 paid by state employees. 9 Each employer who participates in a state health or medical 10 group insurance plan must pay monthly premium amounts for 11 coverage to DAS, plus administrative fees calculated on a 12 per-month basis per employee or elected official. An employer 13 may require each covered employee or elected official to 14 contribute a portion of the cost of such coverage under the 15 state plan, subject to any collective bargaining obligations. 16 The payments are to be deposited in the Iowa health care 17 coverage partnership program trust fund created in Code section 18 8A.475 and expended for coverage being provided to the covered 19 employees or elected officials. 20 If monthly premium payments are not made, DAS may charge 21 interest on the unpaid balance. If a nonstate public employer 22 fails to make premium payments, DAS may direct the treasurer 23 of state to withhold grants, allocations, or appropriations 24 payable to the nonstate public employer, until the premium 25 payments are made. If a nonprofit employer fails to make 26 premium payments, DAS may terminate participation of that 27 employer’s employees in the state plan and request the attorney 28 general to recover the unpaid premiums and interest. 29 For purposes of the program, a “nonstate public employer” is 30 a political subdivision of the state, including but not limited 31 to counties, cities, community colleges, quasi-public agencies, 32 and school districts. A “nonprofit employer” is a corporation 33 organized or recognized as a nonprofit corporation under state 34 or federal law. 35 -5- LSB 1721SC (2) 86 av/rj 5/ 6