Bill Text: IA SF2329 | 2017-2018 | 87th General Assembly | Introduced

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Bill Title: A bill for an act relating to health benefit plans for members of certain agricultural organizations. (Formerly SSB 3173.)

Spectrum: Committee Bill

Status: (Engrossed - Dead) 2018-03-15 - Placed on calendar under unfinished business. H.J. 592. [SF2329 Detail]

Download: Iowa-2017-SF2329-Introduced.html

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Senate File 2329 - Introduced




                                 SENATE FILE       
                                 BY  COMMITTEE ON COMMERCE

                                 (SUCCESSOR TO SSB
                                     3173)

                                 (COMPANION TO 6157HV
                                     by Committee on
                                     commerce)

                                      A BILL FOR

  1 An Act relating to health benefit plans for members of certain
  2    agricultural organizations.
  3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
    TLSB 6157SV (2) 87
    ko/rj

PAG LIN



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