Bill Text: IA SSB1160 | 2013-2014 | 85th General Assembly | Introduced

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Bill Title: A study bill for an act relating to health care coverage under the state health insurance plan and including effective date provisions.

Spectrum: Unknown

Status: (N/A - Dead) 0000-00-00 - State Government: Petersen Chair,Bowman, and Whitver. [SSB1160 Detail]

Download: Iowa-2013-SSB1160-Introduced.html

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Senate Study Bill 1160 - Introduced
SENATE FILE _____
BY (PROPOSED COMMITTEE ON
STATE GOVERNMENT BILL BY
CHAIRPERSON DANIELSON)
A BILL FOR
An Act relating to health care coverage under the state health
insurance plan and including effective date provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
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Section 1. NEW SECTION . 8A.454A Health insurance plans ——
benefits and modifications.
Benefits and modifications to benefits under a health
insurance plan established for state employees pursuant to
chapter 509A shall be determined by a state employee
organization through the collective bargaining process.
PART 5
IOWA HEALTH CARE COVERAGE PARTNERSHIP PROGRAM
Sec. 2. NEW SECTION . 8A.471 Definitions.
As used in this part, unless the context otherwise requires:
1. “Nonprofit employer” means a nonprofit corporation that
is either of the following and does not include a nonstate
public employer:
a. A corporation subject to chapter 504.
b. A corporation which qualifies under 26 U.S.C. §
501(c)(3).
2. “Nonstate public employee” means any employee or elected
official of a nonstate public employer.
3. “Nonstate public employer” means a political subdivision
of the state, including a quasi-public agency.
4. “Political subdivision of the state” means a political
subdivision of the state or its offices or units, including but
not limited to a county, city, community college, or school
district.
5. “State health or medical group insurance plan” or “state
plan” means a health or medical group insurance plan for
employees of the state.
Sec. 3. 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 nonstate public employer may submit an application
to the department for coverage under the state plan of all
of such employer’s nonstate public employees. If a nonstate
public employer submits such an application for coverage, the
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department shall provide such coverage no later than the first
day of the third calendar month following such application.
3. Notwithstanding any other provisions of state law,
initial participation in the state plan shall be a permissive
subject of collective bargaining and shall be subject to
binding arbitration only if the employee organization and
the nonstate public employer mutually agree to bargain over
such initial participation. Such mutual agreement shall be
in writing and signed by the authorized representatives of
the employee organization and the nonstate public employer.
Continuation in the state plan, after initial participation,
shall be a mandatory subject of bargaining, and shall be
subject to binding arbitration in accordance with the same
procedures and standards that apply to any other mandatory
subject of bargaining pursuant to state law.
4. Premium rates for nonstate public employers 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. 4. NEW SECTION . 8A.473 Employees of nonprofit
employers —— coverage.
1. Employees of nonprofit employers may obtain coverage
under the state plan in accordance with this section.
2. A nonprofit employer may submit an application to the
department for coverage under the state plan of all of such
employer’s employees. If a nonprofit employer 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. However, the department
shall not approve an application for coverage under the
state plan if the department determines that approval of such
coverage would cause the state plan to be subject to the
requirements of the federal Employee Retirement Income Security
Act of 1974, as codified at 29 U.S.C. § 1001 et seq. If the
department determines that the state plan is compliant with
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such federal requirements, the department shall resume approval
of applications for coverage under the state plan as provided
in this section.
3. Premium rates for nonprofit employers 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. 5. NEW SECTION . 8A.474 Premium payments ——
administrative fees.
1. A nonstate public employer or nonprofit employer
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
nonstate public employer or nonprofit employer 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 such
employer. If any payment due by a nonstate public employer or
nonprofit employer 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 nonstate public employer or
nonprofit employer.
2. The department shall charge a nonstate public employer
or nonprofit employer 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.475. Moneys deposited in the Iowa health
care coverage partnership program trust fund shall be expended
for payment of insurance premiums and administrative fees for
employees and elected officials covered under the state plan.
4. If a nonstate public employer fails to make premium
payments as required under this section, the department may
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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 nonstate public employer at any time
subsequent to the failure of the nonstate public employer, to
pay such premiums and interest that are due and unpaid and
to withhold payment of moneys payable to the nonstate public
employer until the amount of the premiums and interest then
due and unpaid by the nonstate public employer 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 nonstate public
employer if such withholding will adversely affect the receipt
of any federal grant or aid in connection with such moneys.
5. If a nonprofit employer fails to make premium payments,
the department may terminate the nonprofit employer’s employee
participation in the state plan and request the attorney
general to recover any premiums and interest due and unpaid.
Sec. 6. NEW SECTION . 8A.475 Iowa health care coverage
partnership program trust fund.
1. A separate, special 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 shall be used for the exclusive
benefit of employees and elected officials covered under the
state plan as provided in section 8A.474.
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.
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Sec. 7. NEW SECTION . 8A.476 Rules.
The department, by rule, shall develop procedures for the
implementation and administration of the provisions contained
in this part 5.
Sec. 8. EFFECTIVE DATE. This Act takes effect January 1,
2014.
EXPLANATION
This bill relates to health care coverage under the state
health insurance plan. The bill provides that benefits
and modifications to benefits under a health insurance plan
established for state employees pursuant to Code chapter 509A
shall be determined by a state employee organization through
the collective bargaining process.
The bill allows employees and elected officials of a
nonstate public employer and employees of a nonprofit employer
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 employer who 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. An employer
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 Code section
8A.475 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 nonstate public employer
fails to make premium payments, DAS may direct the treasurer
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of state to withhold grants, allocations, or appropriations
payable to the nonstate public employer, until the premium
payments are made. If a nonprofit employer fails to make
premium payments, DAS may terminate participation of that
employer’s employees in the state plan and request the attorney
general to recover the unpaid premiums and interest.
For purposes of the program, a “nonstate public employer” is
a political subdivision of the state, including but not limited
to counties, cities, community colleges, quasi-public agencies,
and school districts. A “nonprofit employer” is a corporation
organized or recognized as a nonprofit corporation under state
or federal law.
The department of administrative services shall, by rule,
adopt procedures to implement and administer the provisions of
the bill.
The bill may cause a state agency or political subdivision to
offer for sale to the public a service or product that competes
with private enterprise.
The bill takes effect January 1, 2014.
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