H.F. 2029 Section 1. NEW SECTION . 8A.471 Definitions. 1 As used in this part, unless the context otherwise requires: 2 1. “Nonstate public employee” means an employee or elected 3 official of a public school district. 4 2. “State health or medical group insurance plan” or “state 5 plan” means a health or medical group insurance plan for 6 employees of the state. 7 Sec. 2. NEW SECTION . 8A.472 Nonstate public employees —— 8 coverage. 9 1. Nonstate public employees may obtain coverage under the 10 state plan in accordance with this section. 11 2. A public school district may submit an application 12 to the department for coverage under the state plan of all 13 of the public school district’s nonstate public employees. 14 If a public school district submits such an application for 15 coverage, the department shall provide such coverage no later 16 than the first day of the third calendar month following such 17 application. 18 3. Premium rates for public school districts shall be the 19 total premium rate paid by the state inclusive of any premiums 20 paid by state employees for the particular state health care 21 product offered by the state plan. 22 Sec. 3. NEW SECTION . 8A.473 Premium payments —— 23 administrative fees. 24 1. A public school district participating in the state plan 25 shall pay the monthly amount determined by the department, for 26 coverage of its employees or elected officials as appropriate 27 under the state plan. A public school district may require 28 each covered employee or elected official to contribute a 29 portion of the cost of such coverage under the state plan, 30 subject to any collective bargaining obligation applicable to 31 the public school district. If any payment due by a public 32 school district under this section is not timely paid, after 33 the due date interest shall be added to such payment at the 34 prevailing rate of interest, as determined by the department. 35 -1- LSB 5086YH (2) 91 sc/ns 1/ 4

H.F. 2029 Such interest shall be paid by the public school district. 1 2. The department shall charge a public school district 2 participating in the state plan an administrative fee 3 calculated on a per-month basis per covered employee or elected 4 official. 5 3. Payments made pursuant to this section shall be deposited 6 in the Iowa health care coverage partnership program trust fund 7 created in section 8A.474. 8 4. If a public school district fails to make premium 9 payments as required under this section, the department may 10 direct the treasurer of state, or any other office of the state 11 that is the custodian of any moneys made available by reason 12 of any grant, allocation, or appropriation by the state or 13 state agencies payable to the public school district at any 14 time subsequent to the failure of the public school district, 15 to pay such premiums and interest that are due and unpaid and 16 to withhold payment of moneys payable to the public school 17 district until the amount of the premiums and interest then 18 due and unpaid by the public school district has been paid 19 to the state or until the treasurer of state determines that 20 arrangements, satisfactory to the treasurer of state, have been 21 made for the payment of such premiums and interest. However, 22 such moneys shall not be withheld from a public school district 23 if such withholding will adversely affect the receipt of any 24 federal grant or aid in connection with such moneys. 25 Sec. 4. NEW SECTION . 8A.474 Iowa health care coverage 26 partnership program trust fund. 27 1. An Iowa health care coverage partnership program trust 28 fund is created in the state treasury under the control of 29 the department. The trust fund shall consist of all moneys 30 deposited in the fund and other assets that must be held in 31 trust and is appropriated to the department for the exclusive 32 benefit of nonstate public employees covered under the 33 state plan, including for payment of insurance premiums and 34 administrative fees for nonstate public employees covered under 35 -2- LSB 5086YH (2) 91 sc/ns 2/ 4

H.F. 2029 the state plan. 1 2. The director is the trustee of the fund and shall 2 administer the fund. Any loss to the fund shall be charged 3 against the trust and the director shall not be personally 4 liable for such loss. 5 3. Moneys in the fund are not subject to section 8.33. 6 Notwithstanding section 12C.7, subsection 2, interest or 7 earnings on moneys in the fund shall be credited to the fund. 8 Sec. 5. NEW SECTION . 8A.475 Rules. 9 The department, by rule, shall develop procedures for the 10 implementation and administration of the provisions contained 11 in this part. 12 Sec. 6. NEW SECTION . 8A.476 Reporting. 13 On or before December 31 of each year, the department 14 shall submit to the governor and general assembly a report 15 on the health care coverage provided to nonstate public 16 employees, detailing costs, enrollment metrics, operational 17 efficiency, and stakeholder feedback, including the financial 18 and operational impact of the expanded enrollment eligibility 19 for state health or medical group insurance plans, including 20 overall cost savings for members and the state. 21 Sec. 7. EFFECTIVE DATE. This Act takes effect July 1, 2027. 22 EXPLANATION 23 The inclusion of this explanation does not constitute agreement with 24 the explanation’s substance by the members of the general assembly. 25 This bill allows employees and elected officials of a 26 public school district to apply for coverage and enroll in a 27 state health or medical group insurance plan provided to state 28 employees by the department of administrative services (DAS). 29 Premium payments for coverage received through a state plan 30 must be the same as for state employees, including any premiums 31 paid by state employees. 32 Each public school district that participates in a state 33 health or medical group insurance plan must pay monthly 34 premium amounts for coverage to DAS, plus administrative 35 -3- LSB 5086YH (2) 91 sc/ns 3/ 4

H.F. 2029 fees calculated on a per-month basis per employee or elected 1 official. A public school district may require each covered 2 employee or elected official to contribute a portion of the 3 cost of such coverage under the state plan, subject to any 4 collective bargaining obligations. The payments are to be 5 deposited in the Iowa health care coverage partnership program 6 trust fund, created in the bill, and expended for coverage 7 being provided to the covered employees or elected officials. 8 If monthly premium payments are not made, DAS may charge 9 interest on the unpaid balance. If a public school district 10 fails to make premium payments, DAS may direct the treasurer of 11 state or other state entity to withhold grants, allocations, 12 or appropriations payable to the public school district, until 13 the premium payments are made. 14 The bill requires DAS to submit an annual report to the 15 governor and the general assembly on the health care coverage 16 provided to nonstate public employees. 17 The bill takes effect July 1, 2027. 18 -4- LSB 5086YH (2) 91 sc/ns 4/ 4