H.F. 2367 Section 1. Section 507B.4, subsection 1, Code 2024, is 1 amended to read as follows: 2 1. For purposes of subsection 3 , paragraph paragraphs “p” 3 and “v” , “insurer” means an entity providing a plan of health 4 insurance, health care benefits, or health care services, or 5 an entity subject to the jurisdiction of the commissioner 6 performing utilization review, including an insurance company 7 offering sickness and accident plans, a health maintenance 8 organization, a nonprofit health service corporation, a plan 9 established pursuant to chapter 509A for public employees, or 10 any other entity providing a plan of health insurance, health 11 care benefits, or health care services. However, “insurer” does 12 not include an entity that sells disability income insurance. 13 Sec. 2. Section 507B.4, subsection 3, Code 2024, is amended 14 by adding the following new paragraph: 15 NEW PARAGRAPH . v. Failure to negotiate in good 16 faith. Failure of an insurer to negotiate in good faith all 17 charges with a hospital licensed pursuant to chapter 135B. 18 “Good faith” means honesty in fact and the observance of 19 reasonable commercial standards of fair dealing in the trade. 20 EXPLANATION 21 The inclusion of this explanation does not constitute agreement with 22 the explanation’s substance by the members of the general assembly. 23 This bill relates to an insurer’s duty of good faith in 24 negotiations. Under the bill, it shall be an unfair method 25 of competition and unfair or deceptive act or practice in the 26 business of insurance for an insurer to fail to negotiate in 27 good faith all charges with a hospital licensed pursuant to 28 Code chapter 135B. “Good faith” is defined by the bill as 29 honesty in fact and the observance of reasonable commercial 30 standards of fair dealing in the trade. “Insurer” is also 31 defined in the bill. 32 -1- LSB 5857YH (2) 90 nls/ko 1/ 1