Health insurance trusts-fiscal policy.

WORKING DRAFT
2012
STATE OF WYOMING
12LSO-0117

HOUSE BILL

NO.
HB0020

H
ealth insurance
trusts-fiscal policy
.

Sponsored by:
Joint Labor, Health and Social Services Interim Committee

A BILL

for

AN ACT relating to
the
Uniform Municipal Fiscal Procedures Act; providing
that

political subdivisions
providing

health
insurance
by
self-insur
ing or through
insurance trust plans
are
subject to reporting and auditing by the insurance commissioner as specified
;
providing authority for the insurance commissioner to require fiscal improvements in self-insurance or trusts as specified; amending a
definition
;
and providing for an effective date.

Be It Enacted by the Legislature of the State of Wyoming:

Section 1.
W.S.
16-4
‑
1
26

is created
to read:

16-4-126.

Self-insurance
trusts for employee health coverage
.

(a)

An
y
municipality
as defined in W.S. 16
‑
4
‑
102(a)(xiv)
that provides disability insurance, as defined in W.S. 26
‑
5
‑
103, for its employees
under
a self-insurance plan through a
n
insurance trust
with
other political subdivisions
shall comply with the following requirements:

(
i
)

The municipality shall report to the insurance department, at times reasonably required by the insurance commissioner, such information
regarding
the municipality's self-insurance plan or trust as required by the commissioner to demonstrate the actuarial viability of the plan or trust;

(ii)

The insurance commissioner
may
provide for an audit of the municipality's plan or trust at any time
. The insurance commissioner may decide the scope and extent of the audit and require the plan or trust to cover all costs of the audit
;

(iii)

The insurance commissioner shall have authority to determine if a municipality's insurance
plan reserves are inadequate or that a
pool is not large enough to protect the pool from insolvency, and to require that
reserves be increased,
that the pool purchase reinsurance or stop loss insurance above a specified claim level or
that the pool adopt a specified
combination
of these remedies.
The insurance commissioner may impose penalties for noncompliance with the commissioner's requirements as provided in W.S. 26
‑
1
‑
107.

(b)

The insurance commissioner may promulgate rules and regulations to implement this section.

Section 2.

W.S. 16
‑
4
‑
102(a)(xx) is amended to read:

16
‑
4
‑
102.

Definitions.

(a)

As used in this act:

(xx)

"This act" means W.S. 16
‑
4
‑
101 through
16
‑
4
‑
124

16
‑
4
‑
126
.

Section
3
.

This act is effective July 1, 201
2
.

(END)

1
HB0020