Bill Text: IA SF63 | 2023-2024 | 90th 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 16-0)

Status: (Introduced) 2023-01-17 - Subcommittee: Edler, Costello, and Petersen. S.J. 143. [SF63 Detail]

Download: Iowa-2023-SF63-Introduced.html
Senate File 63 - Introduced SENATE FILE 63 BY PETERSEN , WEINER , CELSI , BOULTON , DOTZLER , JOCHUM , QUIRMBACH , T. TAYLOR , DONAHUE , KNOX , BENNETT , TRONE GARRIOTT , WINCKLER , GIDDENS , BISIGNANO , and WAHLS 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 1502XS (5) 90 pf/jh
S.F. 63 Section 1. HAWK-I PROGRAM PURCHASE OPTION. 1 1. The director of the department of health and human 2 services shall seek necessary federal waiver authority to do 3 all of the following: 4 a. To establish a program that allows individuals who meet 5 either of the following conditions the option of purchasing 6 coverage through the hawk-i program rather than purchasing a 7 qualified health plan through the health insurance marketplace 8 established pursuant to the federal Patient Protection and 9 Affordable Care Act, or an individual health plan offered 10 outside of the health insurance marketplace: 11 (1) Individuals with incomes above the maximum income 12 eligibility limit pursuant to section 514I.8, who otherwise 13 meet the hawk-i program eligibility requirements pursuant to 14 section 514I.8 with the exception of age. 15 (2) Pregnant individuals who meet the age requirements for 16 the hawk-i program pursuant to section 514I.8, regardless of 17 whether the individual’s family income meets the maximum income 18 eligibility limit pursuant to section 514I.8. 19 b. To allow individuals who qualify under paragraph “a” who 20 choose to purchase coverage through the hawk-i program to use 21 advanced tax credits and cost-sharing credits, if eligible, to 22 purchase this option. 23 c. To permit the hawk-i program purchase option to be 24 offered through the health insurance marketplace as a coverage 25 option and to be compared with qualified health plans offered 26 through the health insurance marketplace. 27 d. Notwithstanding the eligibility criterion that a child 28 must be less than nineteen years of age pursuant to paragraph 29 “a”, subparagraph (1), allow the hawk-i purchase option to be 30 offered to a child up to twenty-six years of age. 31 2. The director of health and human services shall 32 coordinate the administration of the hawk-i program with 33 the hawk-i program purchase option to maximize efficiencies 34 and improve the continuity of care for eligible children 35 -1- LSB 1502XS (5) 90 pf/jh 1/ 4
S.F. 63 consistent with chapter 514I. The director shall implement 1 mechanisms to ensure the long-term financial sustainability of 2 the hawk-i program and mitigate any adverse financial impacts 3 to the health insurance marketplace. These mechanisms shall 4 address issues related to minimizing adverse selection, the 5 state financial risk and contribution, and negative impacts 6 to premiums in the individual and group insurance market both 7 inside and outside of the health insurance marketplace. At a 8 minimum, the hawk-i purchase option shall include all of the 9 following: 10 a. Establishment of an annual per enrollee premium rate 11 similar to the average rate paid by the state to managed care 12 plan contractors under the hawk-i program. 13 b. Establishment of a benefit set equal to the benefits 14 covered under the hawk-i program. 15 c. Establishment of annual open enrollment periods 16 consistent with those for the hawk-i program. 17 d. The ability of the director to adjust the purchase 18 option’s actuarial value to a value no lower than eighty-seven 19 percent. 20 e. Reimbursement mechanisms to address potential reductions 21 in funding for health insurance marketplace operations. 22 f. Reimbursement mechanisms to address potential increased 23 costs to the hawk-i program. 24 3. The director of the department of health and human 25 services in collaboration with the commissioner of insurance 26 shall report to the chairpersons and ranking members of 27 the health and human services committees and the joint 28 appropriations subcommittee on health and human services by 29 September 1, 2023, on the progress of the federal waivers and 30 the results from actuarial and economic analyses that are 31 necessary for a waiver proposal. The report shall also include 32 recommendations regarding any statutory or administrative rule 33 changes necessary to implement the program. 34 Sec. 2. EFFECTIVE DATE. This Act, being deemed of immediate 35 -2- LSB 1502XS (5) 90 pf/jh 2/ 4
S.F. 63 importance, takes effect upon enactment. 1 Sec. 3. CONTINGENT IMPLEMENTATION. Implementation of any 2 waiver provision that requires a state financial contribution 3 shall be contingent on further legislative action to approve 4 the state’s contribution. 5 EXPLANATION 6 The inclusion of this explanation does not constitute agreement with 7 the explanation’s substance by the members of the general assembly. 8 This bill directs the director of health and human services 9 to seek necessary federal waiver authority to establish 10 a program that allows individuals who meet either of two 11 criteria the option of purchasing coverage through the 12 hawk-i program. The two criteria are: individuals with 13 incomes above the maximum income eligibility limit under the 14 hawk-i program (currently 300 percent of the federal poverty 15 level), and who otherwise meet the hawk-i program eligibility 16 requirements (with the exception of the age limitation of 17 less than 19 years of age); or pregnant individuals who met 18 the age requirement (less than 19 years of age) regardless of 19 whether the individual’s family income meets the maximum income 20 eligibility limit under the program. The option would also 21 allow individuals who qualify and choose to purchase coverage 22 through the hawk-i program to use advanced tax credits and 23 cost-sharing credits, if eligible, to purchase the option; to 24 permit the hawk-i program purchase option to be offered through 25 the health insurance marketplace as a coverage option and to be 26 compared with qualified health plans offered through the health 27 insurance marketplace; and notwithstanding the eligibility 28 criterion that a child must be less than 19 years of age under 29 the first specified criterion, allow the hawk-i purchase option 30 to be offered to a child up to 26 years of age. 31 The bill directs the director of health and human services 32 to coordinate the administration of the hawk-i program with 33 the hawk-i program purchase option to maximize efficiencies 34 and improve the continuity of care for eligible children; and 35 -3- LSB 1502XS (5) 90 pf/jh 3/ 4
S.F. 63 to implement mechanisms to ensure the long-term financial 1 sustainability of the hawk-i program and mitigate any adverse 2 financial impacts to the health insurance marketplace. The 3 mechanisms are to address issues related to minimizing adverse 4 selection, the state financial risk and contribution, and 5 negative impacts to premiums in the individual and group 6 insurance market both inside and outside of the health 7 insurance marketplace. 8 At a minimum, the hawk-i purchase option must include: 9 establishment of an annual per enrollee premium rate similar 10 to the average rate paid by the state to managed care plan 11 contractors under the hawk-i program; establishment of a 12 benefit set equal to the benefits covered under the hawk-i 13 program; establishment of annual open enrollment periods 14 consistent with those for the hawk-i program; the ability 15 of the director of health and human services to adjust the 16 purchase option’s actuarial value to a value no lower than 17 87 percent; reimbursement mechanisms to address potential 18 reductions in funding for health insurance marketplace 19 operations; and reimbursement mechanisms to address potential 20 increased costs to the hawk-i program. 21 The director of health and human services in collaboration 22 with the commissioner of insurance shall report to the 23 chairpersons and ranking members of the house and senate health 24 and human services committees and the joint appropriations 25 subcommittee on health and human services by September 1, 26 2023, on the progress of the federal waivers and the results 27 from actuarial and economic analyses that are necessary for a 28 waiver proposal. The report shall also include recommendations 29 regarding any statutory or administrative rule changes 30 necessary to implement the program. 31 The bill takes effect upon enactment. Implementation of any 32 waiver provision that requires a state financial contribution 33 is contingent on further legislative action to approve the 34 state’s contribution. 35 -4- LSB 1502XS (5) 90 pf/jh 4/ 4
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