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House
File
716
-
Introduced
HOUSE
FILE
716
BY
GEARHART
A
BILL
FOR
An
Act
relating
to
health
care
coverage
of
certain
nonstate
1
public
employees
and
officials
under
the
state
health
2
insurance
plan,
and
including
effective
date
provisions.
3
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
4
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Section
1.
NEW
SECTION
.
8A.471
Definitions.
1
As
used
in
this
part,
unless
the
context
otherwise
requires:
2
1.
“Nonstate
public
employee”
means
any
employee
or
elected
3
official
of
a
nonstate
public
employer
who
is
an
active
member,
4
as
defined
in
section
97B.1A,
of
the
Iowa
public
employees’
5
retirement
system.
6
2.
“Nonstate
public
employer”
means
a
political
subdivision
7
of
the
state
or
its
offices
or
units,
including
but
not
limited
8
to
a
county,
city,
community
college,
or
school
district.
9
3.
“State
health
or
medical
group
insurance
plan”
or
“state
10
plan”
means
a
health
or
medical
group
insurance
plan
for
11
employees
of
the
state.
12
Sec.
2.
NEW
SECTION
.
8A.472
Nonstate
public
employees
——
13
coverage.
14
1.
Nonstate
public
employees
may
obtain
coverage
under
the
15
state
plan
in
accordance
with
this
section.
16
2.
A
nonstate
public
employer
may
submit
an
application
17
to
the
department
for
coverage
under
the
state
plan
of
all
18
of
such
employer’s
nonstate
public
employees.
If
a
nonstate
19
public
employer
submits
such
an
application
for
coverage,
the
20
department
shall
provide
such
coverage
no
later
than
the
first
21
day
of
the
third
calendar
month
following
such
application.
22
3.
Premium
rates
for
nonstate
public
employers
shall
be
the
23
total
premium
rate
paid
by
the
state
inclusive
of
any
premiums
24
paid
by
state
employees
for
the
particular
state
health
care
25
product
offered
by
the
state
plan.
26
Sec.
3.
NEW
SECTION
.
8A.473
Premium
payments
——
27
administrative
fees.
28
1.
A
nonstate
public
employer
participating
in
the
29
state
plan
shall
pay
the
monthly
amount
determined
by
the
30
department,
for
coverage
of
its
employees
or
elected
officials
31
as
appropriate
under
the
state
plan.
A
nonstate
public
32
employer
may
require
each
covered
employee
or
elected
official
33
to
contribute
a
portion
of
the
cost
of
such
coverage
under
the
34
state
plan,
subject
to
any
collective
bargaining
obligation
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applicable
to
such
employer.
If
any
payment
due
by
a
nonstate
1
public
employer
under
this
section
is
not
timely
paid,
after
2
the
due
date
interest
shall
be
added
to
such
payment
at
the
3
prevailing
rate
of
interest,
as
determined
by
the
department.
4
Such
interest
shall
be
paid
by
the
nonstate
public
employer.
5
2.
The
department
shall
charge
a
nonstate
public
employer
6
participating
in
the
state
plan
an
administrative
fee
7
calculated
on
a
per-month
basis
per
covered
employee
or
elected
8
official.
9
3.
Payments
made
pursuant
to
this
section
shall
be
deposited
10
in
the
Iowa
health
care
coverage
partnership
program
trust
fund
11
created
in
section
8A.474.
12
4.
If
a
nonstate
public
employer
fails
to
make
premium
13
payments
as
required
under
this
section,
the
department
may
14
direct
the
treasurer
of
state,
or
any
other
office
of
the
state
15
that
is
the
custodian
of
any
moneys
made
available
by
reason
of
16
any
grant,
allocation,
or
appropriation
by
the
state
or
state
17
agencies
payable
to
the
nonstate
public
employer
at
any
time
18
subsequent
to
the
failure
of
the
nonstate
public
employer,
to
19
pay
such
premiums
and
interest
that
are
due
and
unpaid
and
20
to
withhold
payment
of
moneys
payable
to
the
nonstate
public
21
employer
until
the
amount
of
the
premiums
and
interest
then
22
due
and
unpaid
by
the
nonstate
public
employer
has
been
paid
23
to
the
state
or
until
the
treasurer
of
state
determines
that
24
arrangements,
satisfactory
to
the
treasurer
of
state,
have
been
25
made
for
the
payment
of
such
premiums
and
interest.
However,
26
such
moneys
shall
not
be
withheld
from
a
nonstate
public
27
employer
if
such
withholding
will
adversely
affect
the
receipt
28
of
any
federal
grant
or
aid
in
connection
with
such
moneys.
29
Sec.
4.
NEW
SECTION
.
8A.474
Iowa
health
care
coverage
30
partnership
program
trust
fund.
31
1.
An
Iowa
health
care
coverage
partnership
program
trust
32
fund
is
created
in
the
state
treasury
under
the
control
of
33
the
department.
The
trust
fund
shall
consist
of
all
moneys
34
deposited
in
the
fund
and
other
assets
that
must
be
held
in
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trust
and
is
appropriated
to
the
department
for
the
exclusive
1
benefit
of
nonstate
public
employees
covered
under
the
2
state
plan,
including
for
payment
of
insurance
premiums
and
3
administrative
fees
for
nonstate
public
employees
covered
under
4
the
state
plan.
5
2.
The
director
is
the
trustee
of
the
fund
and
shall
6
administer
the
fund.
Any
loss
to
the
fund
shall
be
charged
7
against
the
trust
and
the
director
shall
not
be
personally
8
liable
for
such
loss.
9
3.
Moneys
in
the
fund
are
not
subject
to
section
8.33.
10
Notwithstanding
section
12C.7,
subsection
2,
interest
or
11
earnings
on
moneys
in
the
fund
shall
be
credited
to
the
fund.
12
Sec.
5.
NEW
SECTION
.
8A.475
Rules.
13
The
department,
by
rule,
shall
develop
procedures
for
the
14
implementation
and
administration
of
the
provisions
contained
15
in
this
part.
16
Sec.
6.
NEW
SECTION
.
8A.476
Reporting.
17
On
or
before
December
31
of
each
year,
the
department
18
shall
submit
to
the
governor
and
general
assembly
a
report
19
on
the
health
care
coverage
provided
to
nonstate
public
20
employees,
detailing
costs,
enrollment
metrics,
operational
21
efficiency,
and
stakeholder
feedback,
including
the
financial
22
and
operational
impact
of
the
expanded
enrollment
eligibility
23
for
state
health
or
medical
group
insurance
plans,
including
24
overall
cost
savings
for
members
and
the
state.
25
Sec.
7.
EFFECTIVE
DATE.
This
Act
takes
effect
July
1,
2026.
26
EXPLANATION
27
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
28
the
explanation’s
substance
by
the
members
of
the
general
assembly.
29
This
bill
allows
employees
and
elected
officials
of
a
30
nonstate
public
employer
who
actively
contribute
to
the
Iowa
31
public
employees’
retirement
system
to
apply
for
coverage
32
and
enroll
in
a
state
health
or
medical
group
insurance
plan
33
provided
to
state
employees
by
the
department
of
administrative
34
services
(DAS).
Premium
payments
for
coverage
received
through
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a
state
plan
must
be
the
same
as
for
state
employees,
including
1
any
premiums
paid
by
state
employees.
2
Each
employer
who
participates
in
a
state
health
or
medical
3
group
insurance
plan
must
pay
monthly
premium
amounts
for
4
coverage
to
DAS,
plus
administrative
fees
calculated
on
a
5
per-month
basis
per
employee
or
elected
official.
An
employer
6
may
require
each
covered
employee
or
elected
official
to
7
contribute
a
portion
of
the
cost
of
such
coverage
under
the
8
state
plan,
subject
to
any
collective
bargaining
obligations.
9
The
payments
are
to
be
deposited
in
the
Iowa
health
care
10
coverage
partnership
program
trust
fund,
created
in
the
11
bill,
and
expended
for
coverage
being
provided
to
the
covered
12
employees
or
elected
officials.
13
If
monthly
premium
payments
are
not
made,
DAS
may
charge
14
interest
on
the
unpaid
balance.
If
a
nonstate
public
employer
15
fails
to
make
premium
payments,
DAS
may
direct
the
treasurer
16
of
state
to
withhold
grants,
allocations,
or
appropriations
17
payable
to
the
nonstate
public
employer,
until
the
premium
18
payments
are
made.
19
For
purposes
of
the
program,
a
“nonstate
public
employer”
is
20
a
political
subdivision
of
the
state,
including
but
not
limited
21
to
counties,
cities,
community
colleges,
and
school
districts.
22
The
bill
requires
DAS
to
submit
an
annual
report
to
the
23
governor
and
the
general
assembly
on
the
health
care
coverage
24
provided
to
nonstate
public
employees.
25
The
bill
takes
effect
July
1,
2026.
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