2004 Legislation
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HOUSE BILL NO. 725 – Insurance, self-funded, registratn

HOUSE BILL NO. 725

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Bill Status



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

Bill Text


                                                                        
                                                                        
  ]]]]              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 / Fiscal Impact


                      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