Relating to health care coverage of certain nonstate public employees and officials under the state health insurance plan, and including effective date provisions

This bill allows employees and elected officials of a nonstate public employer who actively contribute to the Iowa public employees’ retirement system to apply for coverage and enroll in a state health or medical group insurance plan provided to state employees by the department of administrative services (DAS). Premium payments for coverage received through a state plan must be the same as for state employees, including any premiums paid by state employees. Each employer who participates in a state health or medical group insurance plan must pay monthly premium amounts for coverage to DAS, plus administrative fees calculated on a per-month basis per employee or elected official. An employer may require each covered employee or elected official to contribute a portion of the cost of such coverage under the state plan, subject to any collective bargaining obligations. The payments are to be deposited in the Iowa health care coverage partnership program trust fund, created in the bill, and expended for coverage being provided to the covered employees or elected officials. If monthly premium payments are not made, DAS may charge interest on the unpaid balance. If a nonstate public employer fails to make premium payments, DAS may direct the treasurer of state to withhold grants, allocations, or appropriations payable to the nonstate public employer, until the premium payments are made. For purposes of the program, a “nonstate public employer” is a political subdivision of the state, including but not limited to counties, cities, community colleges, and school districts. The bill requires DAS to submit an annual report to the governor and the general assembly on the health care coverage provided to nonstate public employees. The bill takes effect July 1, 2026.