Senate File 2329 - Introduced SENATE FILE 2329 BY COMMITTEE ON COMMERCE (SUCCESSOR TO SSB 3173) (COMPANION TO 6157HV BY COMMITTEE ON COMMERCE) A BILL FOR An Act relating to health benefit plans for members of certain 1 agricultural organizations. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 6157SV (2) 87 ko/rj
S.F. 2329 Section 1. NEW SECTION . 505.20 Certain agricultural 1 organizations exempt from regulation. 2 1. A health benefit plan, sponsored by a nonprofit 3 agricultural organization domiciled in this state and created 4 primarily to promote programs for the development of rural 5 communities and the economic stability and sustainability of 6 farmers in the state which meets the requirements set forth in 7 subsection 2, shall be deemed to not be insurance and shall 8 not be subject to the provisions of Title XIII, subtitle 1, to 9 the extent such plan, after January 1, 2018, provides health 10 benefits under a self-funded arrangement that is administered 11 by a domestic entity that is registered as a third-party 12 administrator pursuant to chapter 510 and that has continuously 13 provided, either directly or through an affiliate, health 14 care administrative services to the nonprofit agricultural 15 organization or its affiliates for a period in excess of ten 16 years. 17 2. A nonprofit agricultural organization providing a health 18 benefit plan to its members under this section must meet all 19 of the following requirements: 20 a. Have been in existence for twenty-five continuous years 21 prior to the issuance of health benefits to members of the 22 organization. 23 b. Provide membership opportunities for eligible individuals 24 in all ninety-nine counties of the state. 25 c. Collect annual dues from members. 26 d. Hold regular meetings to further the purposes of the 27 members. 28 e. Provide the members with representation on its governing 29 board and committees. 30 f. Provide education, mentoring, and financial assistance to 31 grow and expand rural businesses in the state. 32 g. Have contracted with the domestic entity described in 33 subsection 1 to administer the health benefit plan. 34 3. Such nonprofit agricultural organization shall file a 35 -1- LSB 6157SV (2) 87 ko/rj 1/ 2
S.F. 2329 certification with the commissioner that the organization meets 1 the foregoing requirements prior to providing health benefits 2 under a self-funded arrangement to its members. 3 EXPLANATION 4 The inclusion of this explanation does not constitute agreement with 5 the explanation’s substance by the members of the general assembly. 6 This bill relates to health benefit plans for members of 7 certain agricultural organizations. 8 The bill provides that a health benefit plan sponsored by a 9 nonprofit agricultural organization domiciled in the state for 10 its members shall not be deemed to be insurance and shall not 11 be subject to the jurisdiction of the commissioner of insurance 12 if it meets the requirements as outlined in the bill. 13 The bill requires that the health benefit plan be provided 14 via a self-funded arrangement and administered by a domestic 15 third-party administrator that holds a certificate of 16 registration issued by the commissioner. The third-party 17 administrator shall have acted as the third-party administrator 18 of health care administrative services, either directly 19 or through an affiliate, for the nonprofit agricultural 20 organization for more than 10 consecutive years prior to the 21 date the nonprofit agricultural organization begins offering a 22 health benefit plan to its members. 23 The organization shall certify its compliance with the 24 requirements of the bill with the commissioner prior to 25 providing a health benefit plan to its members. 26 -2- LSB 6157SV (2) 87 ko/rj 2/ 2