Providing for the continuation of health insurance in certain circumstances for the surviving spouse and each surviving child of employees of the state of Iowa and including retroactive applicability provisions

This bill provides for the continuation of health insurance (insurance) in certain circumstances for the surviving spouse (spouse) and each surviving child (child) of an eligible employee of the state of Iowa (eligible employee). The bill defines “eligible employee” as an employee of the state of Iowa, including but not limited to any department, agency, board, bureau, or commission of the state of Iowa, who is participating in a state health or medical group insurance plan under Code chapter 509A which covers the employee at the time of death of the employee and whose death is determined by the department of administrative services to be the direct and proximate result of a traumatic personal injury incurred in the performance of their work duties, and to whom none of the factors detailed in the bill apply. The state must permit continuation of existing insurance, or reenrollment in previously existing insurance, for the spouse and each child of an eligible employee. The bill requires the state to permit continuation of existing insurance for the spouse and each child of an employee who dies and who is reasonably expected to be determined to be an eligible employee, until the determination of eligibility is made. The bill does not require the state to pay for the cost of the insurance; however, the state may pay the full cost or a portion of the cost, in which case the department, agency, board, bureau, commission, or other employing entity of the eligible employee shall bear the cost of such insurance. If the full cost or a portion of the cost of the insurance is not paid by the state, the spouse and each child who is eligible for insurance may elect to continue coverage by paying that portion of the cost of the insurance not paid by the state. The state must notify the provider of the insurance of the identity of the spouse and each child who is to be provided insurance pursuant to the requirements of the bill. The state shall implement continuation of insurance under the bill in a manner that ensures the coverage under the bill is the payor of last resort. The bill does not require continuation of insurance if the spouse or a child who would otherwise be entitled to continuation of insurance was, through the actions of the spouse or of the child, a substantial contributing factor to the death of the eligible employee, or the spouse or a child becomes ineligible for insurance coverage under the terms of the insurance coverage obtained by the state for reasons other than the death of the eligible employee. The bill applies retroactively to January 1, 2024.