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H0489...........................................................by BUSINESS
HEALTH CARE PLANS - SELF-FUNDED - Amends existing law relating to
self-funded health care plans to increase applicable deductible and
obligation amounts for purposes of determining exemption from registration
requirements.
01/20 House intro - 1st rdg - to printing
01/21 Rpt prt - to Bus
02/10 Rpt out - rec d/p - to 2nd rdg
02/11 2nd rdg - to 3rd rdg
02/16 3rd rdg - PASSED - 67-3-0
AYES -- Andersen, Barraclough, Bauer, Bayer, Bedke, Bell, Black,
Block, Boe, Bolz, Bradford, Campbell, Cannon, Clark, Collins, Crow,
Cuddy, Deal, Denney, Douglas, Eberle, Edmunson, Ellsworth, Eskridge,
Field(18), Field(23), Gagner, Garrett, Henbest, Jaquet, Jones,
Kellogg(Nonini), Lake, Langford, Langhorst, Martinez, McGeachin,
McKague, Meyer, Miller, Mitchell, Moyle, Naccarato, Nielsen,
Pasley-Stuart, Raybould, Ridinger, Ring, Ringo, Roberts, Robison,
Rydalch, Sali, Sayler, Schaefer, Shepherd, Shirley, Skippen,
Smith(30), Smith(24), Smylie, Snodgrass, Stevenson, Trail, Wills,
Wood, Mr. Speaker
NAYS -- Barrett, Harwood, Kulczyk
Absent and excused -- None
Floor Sponsor - Gagner
Title apvd - to Senate
02/17 Senate intro - 1st rdg - to Com/HuRes
02/25 Rpt out - rec d/p - to 2nd rdg
02/26 2nd rdg - to 3rd rdg
03/10 3rd rdg - PASSED - 35-0-0
AYES -- Andreason(Andreason), Bailey, Brandt, Bunderson, Burkett,
Burtenshaw, Calabretta, Cameron, Compton, Darrington, Davis, Gannon,
Geddes, Goedde, Hill, Ingram, Kennedy, Keough, Little, Lodge,
Malepeai, Marley, McKenzie, McWilliams, Noble, Noh, Pearce,
Richardson, Schroeder, Sorensen, Stegner, Stennett, Sweet, Werk,
Williams
NAYS -- None
Absent and excused -- None
Floor Sponsor - Goedde
Title apvd - to House
03/11 To enrol
03/12 Rpt enrol - Sp signed
03/15 Pres signed
03/16 To Governor
03/19 Governor signed
Session Law Chapter 86
Effective: 07/01/04
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]]
Fifty-seventh Legislature Second Regular Session - 2004
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 489
BY BUSINESS COMMITTEE
1 AN ACT
2 RELATING TO SELF-FUNDED HEALTH CARE PLANS; AMENDING SECTION 41-4003, IDAHO
3 CODE, TO INCREASE APPLICABLE DEDUCTIBLE AND OBLIGATION AMOUNTS OF SELF-
4 FUNDED PLANS FOR PURPOSES OF DETERMINING EXEMPTION FROM REGISTRATION
5 REQUIREMENTS AND TO MAKE A TECHNICAL CORRECTION.
6 Be It Enacted by the Legislature of the State of Idaho:
7 SECTION 1. That Section 41-4003, Idaho Code, be, and the same is hereby
8 amended to read as follows:
9 41-4003. REGISTRATION REQUIRED -- EXEMPTIONS -- NOT SUBJECT TO INSURANCE
10 CODE. (1) No self-funded plan shall operate in this state except while regis-
11 tered with the director as hereinafter provided. Self-funded plans already in
12 operation at the effective date of this act shall so register within ninety
13 (90) days after such effective date.
14 (2) No registration shall be required of:
15 (a) Any self-funded plan established for the sole purpose of funding the
16 dollar amount of a deductible clause contained in the provisions of an
17 insurance contract issued by an insurer duly authorized to transact dis-
18 ability insurance in this state if the deductible does not exceed an
19 amount applicable to each beneficiary of five hundred two thousand dollars
20 ($5002,000) per annum and the total of all obligations to all beneficia-
21 ries insured under the plan arising out of the application of such a
22 deductible does not exceed the aggregate amount of fifty two hundred thou-
23 sand dollars ($50,000200,000) in any one (1) year.
24 (b) Any plan established and maintained for the purpose of complying with
25 any workmen's worker's compensation law or unemployment compensation dis-
26 ability insurance law.
27 (c) Any plan administered by or for the federal government or agency
28 thereof or any county of this state.
29 (d) Any plan which is primarily for the purpose of providing first aid
30 care and treatment, at a dispensary of an employer, for injury or sickness
31 of employees while engaged in their employment.
32 (e) Any employer's self-insured health plan or service established and
33 maintained solely for its members and their immediate families, or to any
34 self-insured health plan or service established, maintained, and insured
35 jointly by any employer and any labor organization or organizations if
36 such health plan or service has been in existence and operation for fif-
37 teen (15) years immediately preceding the effective date of this act.
38 (3) Plans while so registered shall not be deemed to be engaged in the
39 business of insurance and shall not be subject to provisions of the Idaho
40 insurance code except as expressly provided in this act.
STATEMENT OF PURPOSE
RS 13501
Self-funded employer health plans are required to register with the
Department of Insurance and meet certain statutory requirements.
Idaho Code Section 41-4003(2)(a) creates an exemption from
regulation for employers who self-fund the deductible portion of an
employee health insurance policy, as long as the deductible does
not exceed $500 per individual or $50,000 in the aggregate. These
limits have not been adjusted since 1974. This bill amends this
code section to increase the limits to $2,000 per individual or
$200,000 in aggregate. The change reflects the effects of
inflation and the growing use of high deductible policies by
employers looking for affordable health coverage for their
employees.
FISCAL IMPACT
There will be no fiscal impact.
CONTACT
Name: Shad Priest
Agency: Department of Insurance
Phone: 334-4214
Statement of Purpose/Fiscal Impact H 489