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 TLSB 2353HH (4) 91 sc/ns
H.F. 716 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 employers 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 35 -1- LSB 2353HH (4) 91 sc/ns 1/ 4
H.F. 716 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 35 -2- LSB 2353HH (4) 91 sc/ns 2/ 4
H.F. 716 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 explanations 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 35 -3- LSB 2353HH (4) 91 sc/ns 3/ 4
H.F. 716 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. 26 -4- LSB 2353HH (4) 91 sc/ns 4/ 4