Bill Text: IA SF220 | 2021-2022 | 89th General Assembly | Introduced


Bill Title: A bill for an act relating to a hawk-i program purchase option, and including effective date and contingent implementation provisions.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2021-02-08 - Subcommittee: Costello, Edler, and Trone Garriott. S.J. 275. [SF220 Detail]

Download: Iowa-2021-SF220-Introduced.html
Senate File 220 - Introduced SENATE FILE 220 BY PETERSEN A BILL FOR An Act relating to a hawk-i program purchase option, and 1 including effective date and contingent implementation 2 provisions. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 2369XS (1) 89 pf/rn
S.F. 220 Section 1. HAWK-I PROGRAM PURCHASE OPTION. 1 1. The director of the department of human services shall 2 seek necessary federal waiver authority to do all of the 3 following: 4 a. Establish a program that allows individuals with incomes 5 above the maximum income eligibility limit pursuant to section 6 514I.8, and who otherwise meet the hawk-i program eligibility 7 requirements pursuant to section 514I.8 with the exception 8 of age, the option of purchasing coverage through the hawk-i 9 program rather than purchasing a qualified health plan through 10 the health insurance marketplace established pursuant to the 11 federal Patient Protection and Affordable Care Act, or an 12 individual health plan offered outside of the health insurance 13 marketplace. 14 b. To allow individuals who qualify under paragraph “a” who 15 choose to purchase coverage through the hawk-i program to use 16 advanced tax credits and cost-sharing credits, if eligible, to 17 purchase this option. 18 c. To permit the hawk-i program purchase option to be 19 offered through the health insurance marketplace as a coverage 20 option and to be compared with qualified health plans offered 21 through the health insurance marketplace. 22 d. Notwithstanding the eligibility criterion that a child 23 must be less than nineteen years of age, allow the hawk-i 24 purchase option to be offered to a child up to twenty-six years 25 of age. 26 2. The director of the department of human services shall 27 coordinate the administration of the hawk-i program with 28 the hawk-i program purchase option to maximize efficiencies 29 and improve the continuity of care for eligible children 30 consistent with chapter 514I. The director shall implement 31 mechanisms to ensure the long-term financial sustainability of 32 the hawk-i program and mitigate any adverse financial impacts 33 to the health insurance marketplace. These mechanisms shall 34 address issues related to minimizing adverse selection, the 35 -1- LSB 2369XS (1) 89 pf/rn 1/ 4
S.F. 220 state financial risk and contribution, and negative impacts 1 to premiums in the individual and group insurance market both 2 inside and outside of the health insurance marketplace. At a 3 minimum, the hawk-i purchase option shall include all of the 4 following: 5 a. Establishment of an annual per enrollee premium rate 6 similar to the average rate paid by the state to managed care 7 plan contractors under the hawk-i program. 8 b. Establishment of a benefit set equal to the benefits 9 covered under the hawk-i program. 10 c. Establishment of annual open enrollment periods 11 consistent with those for the hawk-i program. 12 d. The ability of the director to adjust the purchase 13 option’s actuarial value to a value no lower than eighty-seven 14 percent. 15 e. Reimbursement mechanisms to address potential reductions 16 in funding for health insurance marketplace operations. 17 f. Reimbursement mechanisms to address potential increased 18 costs to the hawk-i program. 19 3. The director of the department of human services in 20 collaboration with the commissioner of insurance shall report 21 to the chairpersons and ranking members of the human resources 22 committees and the joint appropriations subcommittee on health 23 and human services by September 1, 2021, on the progress of the 24 federal waivers and the results from actuarial and economic 25 analyses that are necessary for a waiver proposal. The report 26 shall also include recommendations regarding any statutory or 27 administrative rule changes necessary to implement the program. 28 Sec. 2. EFFECTIVE DATE. This Act, being deemed of immediate 29 importance, takes effect upon enactment. 30 Sec. 3. CONTINGENT IMPLEMENTATION. Implementation of any 31 waiver provision that requires a state financial contribution 32 shall be contingent on further legislative action to approve 33 the state’s contribution. 34 EXPLANATION 35 -2- LSB 2369XS (1) 89 pf/rn 2/ 4
S.F. 220 The inclusion of this explanation does not constitute agreement with 1 the explanation’s substance by the members of the general assembly. 2 This bill directs the director of human services to seek 3 necessary federal waiver authority to: establish a program 4 that allows individuals with incomes above the maximum income 5 eligibility limit under the hawk-i program (currently 300 6 percent of the federal poverty level), and who otherwise meet 7 the hawk-i program eligibility requirements (with the exception 8 of the age limitation of less than 19 years of age), the 9 option of purchasing coverage for a child through the hawk-i 10 program rather than purchasing a qualified health plan through 11 the health insurance marketplace established pursuant to the 12 federal Patient Protection and Affordable Care Act, or an 13 individual health plan offered outside of the health insurance 14 marketplace; to allow individuals who qualify and choose to 15 purchase coverage through the hawk-i program to use advanced 16 tax credits and cost-sharing credits, if eligible, to purchase 17 the option; to permit the hawk-i program purchase option to be 18 offered through the health insurance marketplace as a coverage 19 option and to be compared with qualified health plans offered 20 through the health insurance marketplace; and notwithstanding 21 the eligibility criterion that a child must be less than 19 22 years of age, allow the hawk-i purchase option to be offered to 23 a child up to 26 years of age. 24 The bill directs the director of the department of human 25 services to coordinate the administration of the hawk-i 26 program with the hawk-i program purchase option to maximize 27 efficiencies and improve the continuity of care for eligible 28 children; and to implement mechanisms to ensure the long-term 29 financial sustainability of the hawk-i program and mitigate any 30 adverse financial impacts to the health insurance marketplace. 31 The mechanisms are to address issues related to minimizing 32 adverse selection, the state financial risk and contribution, 33 and negative impacts to premiums in the individual and 34 group insurance market both inside and outside of the health 35 -3- LSB 2369XS (1) 89 pf/rn 3/ 4
S.F. 220 insurance marketplace. 1 At a minimum, the hawk-i purchase option must include: 2 establishment of an annual per enrollee premium rate similar 3 to the average rate paid by the state to managed care plan 4 contractors under the hawk-i program; establishment of a 5 benefit set equal to the benefits covered under the hawk-i 6 program; establishment of annual open enrollment periods 7 consistent with those for the hawk-i program; the ability of 8 the director of the department of human services to adjust the 9 purchase option’s actuarial value to a value no lower than 10 87 percent; reimbursement mechanisms to address potential 11 reductions in funding for health insurance marketplace 12 operations; and reimbursement mechanisms to address potential 13 increased costs to the hawk-i program. 14 The director of the department of human services in 15 collaboration with the commissioner of insurance shall report 16 to the chairpersons and ranking members of the house and 17 senate human resources committees and the joint appropriations 18 subcommittee on health and human services by September 1, 19 2021, on the progress of the federal waivers and the results 20 from actuarial and economic analyses that are necessary for a 21 waiver proposal. The report shall also include recommendations 22 regarding any statutory or administrative rule changes 23 necessary to implement the program. 24 The bill takes effect upon enactment. Implementation of any 25 waiver provision that requires a state financial contribution 26 is contingent on further legislative action to approve the 27 state’s contribution. 28 -4- LSB 2369XS (1) 89 pf/rn 4/ 4
feedback