2004 Legislation
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HOUSE BILL NO. 489 – Health care plans, self-funded

HOUSE BILL NO. 489

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Bill Status



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

Bill Text


                                                                        
                                                                        
  ]]]]              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 / Fiscal Impact


                     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