Relating to health insurance and the insurance division of the department of commerce, and providing for fees

This bill relates to health insurance and the insurance division of the department of commerce. The bill authorizes the commissioner of insurance to develop by rule a state innovation waiver (waiver) pursuant to section 1332 of the federal Patient Protection and Affordable Care Act, Pub. L. 111-148, and to submit an application on behalf of the state to the United States secretary of health and human services and the United States secretary of the treasury (secretaries) for the waiver. If a waiver is approved by the secretaries, the commissioner is authorized to implement the waiver in a manner consistent with applicable state and federal law. The bill authorizes the commissioner to adopt emergency rules to implement the waiver and the rules are to be effective immediately upon filing unless a later date is specified in the rules.4.4 and provides that Code chapter 507A (unauthorized insurers) does not apply to a multiple employer welfare arrangement (MEWA) or a MEWA formed as an association health plan (AHP) that meets the requirements of Code chapter 513D.1 (association health plans) and replaces it with new provisions which detail the requirements for MEWAs and AHPs that offer a plan to or that maintain a group health plan for any resident of Iowa. 2510. §1002, paragraph 40. The bill requires an AHP or MEWA to be administered by either an insurer authorized to do the business of insurance in this state, or by an authorized third-party administrator that holds a current certificate of registration. The AHP or MEWA must be established by a trade, industry, or professional association of employers that has a constitution or bylaws, is organized and maintained in good faith, and has membership stability as defined by rules adopted by the commissioner. The AHP or MEWA must register with the commissioner and obtain and maintain a certificate of registration issued by the commissioner. The bill requires that an AHP or MEWA must comply with all rules and solvency standards established by rules adopted by the commissioner, and failure to do so subjects the AHP or MEWA to Code chapter 507C (insurers supervision, rehabilitation, and liquidation).1 (tax on gross premiums —— exclusions), a member of the Iowa individual health benefit reinsurance association, or a member insurer of the Iowa life and health insurance guaranty association.101-2. The AHP and MEWA must also file an annual report with the commissioner on or before March that covers the preceding calendar year. The annual report must contain the information and be in a form and manner as prescribed by the commissioner. A foreign or domestic AHP or MEWA doing business in the state is required by the bill to pay fees as prescribed by the commissioner unless otherwise provided by law. The bill provides that a MEWA that is recognized as tax-exempt under Internal Revenue Code section 501(c)(9), and that is registered with the commissioner prior to January 1, 2018, shall not be considered an AHP unless the MEWA affirmatively elects to be treated as an AHP.19(2).