HF 2029 (LSB 5086YH (2) 91)

HOUSE FILE 2029

BY  BOSSMAN

A BILL FOR

An Act relating to health care coverage of public school district personnel under the state health insurance plan, providing fees, making appropriations, and including effective date provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  NEW SECTION.  8A.471  Definitions.  
   As used in this part, unless the context otherwise requires:
   1.  “Nonstate public employee” means an employee or elected official of a public school district.
   2.  “State health or medical group insurance plan” or “state plan” means a health or medical group insurance plan for employees of the state.
    Sec. 2.  NEW SECTION.  8A.472  Nonstate public employees —— coverage.  
   1.  Nonstate public employees may obtain coverage under the state plan in accordance with this section.
   2.  A public school district may submit an application to the department for coverage under the state plan of all of the public school district’s nonstate public employees. If a public school district submits such an application for coverage, the department shall provide such coverage no later than the first day of the third calendar month following such application.
   3.  Premium rates for public school districts shall be the total premium rate paid by the state inclusive of any premiums paid by state employees for the particular state health care product offered by the state plan.
    Sec. 3.  NEW SECTION.  8A.473  Premium payments —— administrative fees.  
   1.  A public school district participating in the state plan shall pay the monthly amount determined by the department, for coverage of its employees or elected officials as appropriate under the state plan. A public school district may require each covered employee or elected official to contribute a portion of the cost of such coverage under the state plan, subject to any collective bargaining obligation applicable to the public school district. If any payment due by a public school district under this section is not timely paid, after the due date interest shall be added to such payment at the prevailing rate of interest, as determined by the department. Such interest shall be paid by the public school district.
   2.  The department shall charge a public school district participating in the state plan an administrative fee calculated on a per-month basis per covered employee or elected official.
   3.  Payments made pursuant to this section shall be deposited in the Iowa health care coverage partnership program trust fund created in section 8A.474. 
   4.  If a public school district fails to make premium payments as required under this section, the department may direct the treasurer of state, or any other office of the state that is the custodian of any moneys made available by reason of any grant, allocation, or appropriation by the state or state agencies payable to the public school district at any time subsequent to the failure of the public school district, to pay such premiums and interest that are due and unpaid and to withhold payment of moneys payable to the public school district until the amount of the premiums and interest then due and unpaid by the public school district has been paid to the state or until the treasurer of state determines that arrangements, satisfactory to the treasurer of state, have been made for the payment of such premiums and interest. However, such moneys shall not be withheld from a public school district if such withholding will adversely affect the receipt of any federal grant or aid in connection with such moneys.
    Sec. 4.  NEW SECTION.  8A.474  Iowa health care coverage partnership program trust fund.
   1.  An Iowa health care coverage partnership program trust fund is created in the state treasury under the control of the department. The trust fund shall consist of all moneys deposited in the fund and other assets that must be held in trust and is appropriated to the department for the exclusive benefit of nonstate public employees covered under the state plan, including for payment of insurance premiums and administrative fees for nonstate public employees covered under the state plan.
   2.  The director is the trustee of the fund and shall administer the fund. Any loss to the fund shall be charged against the trust and the director shall not be personally liable for such loss.
   3.  Moneys in the fund are not subject to section 8.33. Notwithstanding section 12C.7, subsection 2, interest or earnings on moneys in the fund shall be credited to the fund.
    Sec. 5.  NEW SECTION.  8A.475  Rules.
   The department, by rule, shall develop procedures for the implementation and administration of the provisions contained in this part.
    Sec. 6.  NEW SECTION.  8A.476  Reporting.
   On or before December 31 of each year, the department shall submit to the governor and general assembly a report on the health care coverage provided to nonstate public employees, detailing costs, enrollment metrics, operational efficiency, and stakeholder feedback, including the financial and operational impact of the expanded enrollment eligibility for state health or medical group insurance plans, including overall cost savings for members and the state.
    Sec. 7.  EFFECTIVE DATE.  This Act takes effect July 1, 2027.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This bill allows employees and elected officials of a public school district to apply for coverage and enroll in a state health or medical group insurance plan provided to state employees by the department of administrative services (DAS).  Premium payments for coverage received through a state plan must be the same as for state employees, including any premiums paid by state employees.
   Each public school district that participates in a state health or medical group insurance plan must pay monthly premium amounts for coverage to DAS, plus administrative fees calculated on a per-month basis per employee or elected official. A public school district may require each covered employee or elected official to contribute a portion of the cost of such coverage under the state plan, subject to any collective bargaining obligations. The payments are to be deposited in the Iowa health care coverage partnership program trust fund, created in the bill, and expended for coverage being provided to the covered employees or elected officials.
   If monthly premium payments are not made, DAS may charge interest on the unpaid balance. If a public school district fails to make premium payments, DAS may direct the treasurer of state or other state entity to withhold grants, allocations, or appropriations payable to the public school district, until the premium payments are made. 
   The bill requires DAS to submit an annual report to the governor and the general assembly on the health care coverage provided to nonstate public employees.
   The bill takes effect July 1, 2027.