HF 2430 (LSB 5483YH (2) 90)

HOUSE FILE 2430

BY  HOLT

A BILL FOR

An Act relating to health insurance coverage and subrogation and indemnification.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  NEW SECTION.  507B.4D  Prompt payment of claims and right of subrogation.
   1.  As used in this section, unless the context otherwise requires:
   a.  “Covered person” means the same as defined in section 514J.102.
   b.  “Health benefit plan” means the same as defined in section 514J.102.
   c.  “Health care provider” means the same as defined in section 514J.102.
   d.  “Health care services” means the same as defined in section 514J.102.
   2.  If a covered person injured by reason of an accident provides proof of insurance coverage under a health benefit plan for health care services received from a health care provider, a health care provider shall submit all charges to the covered person’s health benefit plan. The covered person’s health benefit plan shall not deny payment for health care services the covered person received on the basis that a third party or other insurance carrier is responsible for the covered person’s injuries. This section shall not be construed to prohibit a health benefit plan from seeking subrogation or indemnification for third-party liability.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This bill relates to health insurance coverage and subrogation and indemnification. Under the bill, a health care provider shall submit all charges for health care services to an injured covered person’s health benefit plan, and the health benefit plan shall not deny payment on the basis that a third party or other insurance carrier is responsible for the covered person’s injuries. The bill does not prohibit a health benefit plan from seeking subrogation or indemnification from a third party.