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H0725......................................................by STATE AFFAIRS
INSURANCE - SELF-FUNDED - Amends existing law to provide that no
registration under the insurance laws is required for any self-funded plan
administered by or for any city, highway district, school district or
hospital district.
02/18 House intro - 1st rdg - to printing
02/19 Rpt prt - to Bus
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]]
Fifty-seventh Legislature Second Regular Session - 2004
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 725
BY STATE AFFAIRS COMMITTEE
1 AN ACT
2 RELATING TO INSURANCE; AMENDING SECTION 41-4003, IDAHO CODE, TO PROVIDE THAT
3 NO REGISTRATION IS REQUIRED FOR ANY SELF-FUNDED PLAN ADMINISTERED BY OR
4 FOR ANY CITY, HIGHWAY DISTRICT, SCHOOL DISTRICT OR HOSPITAL DISTRICT AND
5 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 dollars ($500) per
20 annum and the total of all obligations to all beneficiaries insured under
21 the plan arising out of the application of such a deductible does not
22 exceed the aggregate amount of fifty thousand dollars ($50,000) in any one
23 (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, city, highway district, school district or hospital
29 district of this state.
30 (d) Any plan which is primarily for the purpose of providing first aid
31 care and treatment, at a dispensary of an employer, for injury or sickness
32 of employees while engaged in their employment.
33 (e) Any employer's self-insured health plan or service established and
34 maintained solely for its members and their immediate families, or to any
35 self-insured health plan or service established, maintained, and insured
36 jointly by any employer and any labor organization or organizations if
37 such health plan or service has been in existence and operation for fif-
38 teen (15) years immediately preceding the effective date of this act.
39 (3) Plans while so registered shall not be deemed to be engaged in the
40 business of insurance and shall not be subject to provisions of the Idaho
41 insurance code except as expressly provided in this act.
STATEMENT OF PURPOSE
RS 14018
This legislation would allow cities, highway districts, hospital
districts, and school districts in the state to join into a self
funded medical insurance plan. The legislation grants to these
entities the same ability that the federal government and counties
currently have in Idaho Code.
FISCAL IMPACT
None to the general fund.
Local entities may realize significant savings in medical insurance.
Contact
Name: Rep. Lee Gagner
Sen. Monty J. Pearce
Phone: 208/332-1000
Ken Harward, Executive Director, AIC 344-8594
Stuart Davis, Executive Director, IAHD - 345-5176
STATEMENT OF PURPOSE/FISCAL NOTE H 725