Bill Text: IA HF2364 | 2017-2018 | 87th General Assembly | Introduced
Bill Title: A bill for an act relating to health benefit plans for members of certain agricultural organizations. (Formerly HSB 637.)
Spectrum: Committee Bill
Status: (Introduced - Dead) 2018-03-21 - Fiscal note. [HF2364 Detail]
Download: Iowa-2017-HF2364-Introduced.html
House File 2364 - Introduced HOUSE FILE BY COMMITTEE ON COMMERCE (SUCCESSOR TO HSB 637) 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 6157HV (1) 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 6157HV (1) 87 ko/rj