2005 Legislation
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HOUSE BILL NO. 198 – Insurance plan, cnty administrtn


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Bill Status

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

Bill Text

  ]]]]              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
  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:
  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 / Fiscal Impact

                      STATEMENT OF PURPOSE

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

Contacts: Senator John C. Andreason
          Representative Max C. Black
          Representative W. W. "Bill" Deal

STATEMENT OF PURPOSE/FISCAL NOTE                        H 198