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H0198...........................................................by BUSINESS
INSURANCE - Amends existing law relating to insurance to remove exemption
language referencing plans administered by counties.
02/14 House intro - 1st rdg - to printing
02/15 Rpt prt - to Loc Gov
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]]
Fifty-eighth Legislature First Regular Session - 2005
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 198
BY BUSINESS COMMITTEE
1 AN ACT
2 RELATING TO INSURANCE; AMENDING SECTION 41-4003, IDAHO CODE, TO REMOVE EXEMP-
3 TION LANGUAGE REFERENCING PLANS ADMINISTERED BY COUNTIES.
4 Be It Enacted by the Legislature of the State of Idaho:
5 SECTION 1. That Section 41-4003, Idaho Code, be, and the same is hereby
6 amended to read as follows:
7 41-4003. REGISTRATION REQUIRED -- EXEMPTIONS -- NOT SUBJECT TO INSURANCE
8 CODE. (1) No self-funded plan shall operate in this state except while regis-
9 tered with the director as hereinafter provided. Self-funded plans already in
10 operation at the effective date of this act shall so register within ninety
11 (90) days after such effective date.
12 (2) No registration shall be required of:
13 (a) Any self-funded plan established for the sole purpose of funding the
14 dollar amount of a deductible clause contained in the provisions of an
15 insurance contract issued by an insurer duly authorized to transact dis-
16 ability insurance in this state if the deductible does not exceed an
17 amount applicable to each beneficiary of two thousand dollars ($2,000) per
18 annum and the total of all obligations to all beneficiaries insured under
19 the plan arising out of the application of such a deductible does not
20 exceed the aggregate amount of two hundred thousand dollars ($200,000) in
21 any one (1) year.
22 (b) Any plan established and maintained for the purpose of complying with
23 any worker's compensation law or unemployment compensation disability
24 insurance law.
25 (c) Any plan administered by or for the federal government or agency
26 thereof. or any county of this state.
27 (d) Any plan which is primarily for the purpose of providing first aid
28 care and treatment, at a dispensary of an employer, for injury or sickness
29 of employees while engaged in their employment.
30 (e) Any employer's self-insured health plan or service established and
31 maintained solely for its members and their immediate families, or to any
32 self-insured health plan or service established, maintained, and insured
33 jointly by any employer and any labor organization or organizations if
34 such health plan or service has been in existence and operation for fif-
35 teen (15) years immediately preceding the effective date of this act.
36 (3) Plans while so registered shall not be deemed to be engaged in the
37 business of insurance and shall not be subject to provisions of the Idaho
38 insurance code except as expressly provided in this act.
STATEMENT OF PURPOSE
RS14753
The purpose of this legislation is to eliminate the exemption
from the requirement for registration of any self-funded health
care plans administered by or for any county of this State and
thereby provide better protections for consumers and health care
providers. The legislation would also eliminate the need to
pursue litigation to clarify the intent of current law with
regard to such plans and would provide a level playing field by
subjecting self-funded plans of counties to the same regulations
and consumer protections as self-funded plans of other employers.
FISCAL NOTE
There would be a positive impact on the General Fund equal to any
tax that would be paid to the General Fund as a result of this
legislation. Greater regulation would also reduce the
possibility of insolvency which might have to be borne by
government if unregulated plans lack sufficient reserves or
underwrite inadequately. There could be a slight impact on some
county governments that would have to pay a tax to the General
Fund to the extent that they are not paying such a tax at the
present time. The amount of such tax is too speculative to
quantify because the rate to be applied is unknowable at this
time.
Contacts: Senator John C. Andreason
Representative Max C. Black
Representative W. W. "Bill" Deal
332-1000
STATEMENT OF PURPOSE/FISCAL NOTE H 198