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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 - 2004IN 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 offive hundredtwo 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 offiftytwo 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 anyworkmen'sworker'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