LEGISLATIVE SERVICES AGENCY
OFFICE OF FISCAL AND MANAGEMENT ANALYSIS
200 W. Washington St., Suite 301
Indianapolis, IN 46204
(317) 233-0696
iga.in.gov
FISCAL IMPACT STATEMENT
LS 7013 NOTE PREPARED: Jan 24, 2022
BILL NUMBER: HB 1296 BILL AMENDED: Jan 24, 2022
SUBJECT: Multiple Employer Welfare Arrangements.
FIRST AUTHOR: Rep. Carbaugh BILL STATUS: CR Adopted - 1
st
House
FIRST SPONSOR:
FUNDS AFFECTED: GENERAL IMPACT: State
XDEDICATED
FEDERAL
Summary of Legislation: (Amended) Claims Data Access: The bill amends the law concerning multiple
employer welfare arrangements (MEWA) to require a MEWA to provide each participating employer access
to claims data that is specific to that employer.
All Payer Claims Data Base: It amends the definition of "health payer" for purposes of the all payer claims
data base to include a MEWA.
Unfair and Deceptive Acts or Practices: The bill makes the violation of any requirement of the MEWA law
an unfair method of competition or unfair or deceptive act or practice.
Effective Date: July 1, 2022.
Explanation of State Expenditures: Unfair and Deceptive Acts or Practices: Violations of the laws
concerning MEWAs will be actionable by the Department of Insurance (DOI) as unfair and deceptive acts
and practices in the practice of insurance. The agency workload may increase to investigate and adjudicate
allegations to determine if an unfair or deceptive act has been committed. The bill allows the DOI to adopt
rules. Increases in DOI workload are within the routine administrative function of the agency and expected
to be accomplished within existing resource and funding levels. [The DOI is funded through a dedicated
agency fund.]
Explanation of State Revenues: Unfair and Deceptive Acts or Practices: The DOI may take administrative
actions concerning unfair and deceptive acts and practices that will impact revenue to the state General Fund
and the DOI’s agency fund. The penalty for engaging in an unfair and deceptive act is a civil penalty between
HB 1296 1 $25,000 and $50,000 for each act or violation. The revocation of a insurers license or certificate of authority
for knowingly engaged in an unfair or deceptive act would result in a reduction in fee revenue to the DOI
agency fund.
Explanation of Local Expenditures:
Explanation of Local Revenues:
State Agencies Affected: Department of Insurance.
Local Agencies Affected:
Information Sources: Claire Szpara, DOI.
Fiscal Analyst: Karen Rossen, 317-234-2106.
HB 1296 2