Iowa Individual Health Benefit Reinsurance Association v. State University of Iowa, Iowa State University of Science and Technology, and University of Northern Iowa

Defendant Regents Institutions appeal from district court rulings granting plaintiff Iowa Individual Health Benefit Reinsurance Association (IIHBRA) summary judgment and awarding damages in its action to collect unpaid assessments pursuant to Iowa Code 513C.10. See Iowa Individual Health Benefit Reins. Ass’n v. State Univ. of Iowa, 876 N.W.2d 800 (Iowa 2016). Defendants contend the district court erred because: (1) the Regents Institutions are not members of the IIHBRA and thus not subject to its assessments; and (2) such assessments against the defendants would violate the state constitutional prohibition against the State extending credit to private entities. See Iowa Const. art. VII, § 1. Plaintiff cross appeals the district court’s denial of its request to award late fees and attorney fees as damages.

Holding: Appeal and cross-appeal from a decision of the district court holding that state universities were members of a statutorily created health benefit reinsurance association and were required to pay assessments to the association. AFFIRMED IN PART, REVERSED IN PART, AND REMANDED.