Tennessee 2025-2026 Regular Session

Tennessee House Bill HB0329 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1
2		-	SENATE BILL 286
3		-	By Bailey
	2	+	<BillNo> <Sponsor>
4	3
5	4		HOUSE BILL 329
6	5		By Martin B
7	6
8	7
9	8		HB0329
10	9		002028
11	10		- 1 -
12	11
13	12		AN ACT to amend Tennessee Code Annotated, Title 56,
14	13		Chapter 26, relative to multiple employer welfare
15	14		arrangements.
16	15
17	16		BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
18	17		SECTION 1. Tennessee Code Annotated, Section 56-26-204(a), is amended by adding
19	18		the following as a new subdivision:
20	19		(5)
21	20		(A) As used in this subdivision (a)(5):
22	21		(i) "Bank":
23	22		(a) Means an entity chartered pursuant to the laws of this
24	23		state, the laws of a contiguous state, or the laws of the United
25	24		States, or in the process of organizing to seek a charter, and
26	25		authorized, or to be authorized, to conduct business as a savings
27	26		and loan, savings bank, trust company, commercial bank, or other
28	27		institution, and which is a member or affiliate member of a trade or
29	28		professional organization organized to provide advocacy,
30	29		leadership, and support for these entities; provided, that the
31	30		entity's participation is authorized under Internal Revenue Code §
32	31		501(c)(9) (26 U.S.C. § 501(c)(9)); and
33	32		(b) Includes the entity's parent, affiliate, or subsidiary,
34	33		which is under common control within the meaning of Internal
35	34		Revenue Code § 414 (26 U.S.C. § 414);
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37	36
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40	39		(ii) "Commissioner" means the commissioner of commerce and
41	40		insurance;
42	41		(iii) "Multiple employer welfare arrangement" has the same
43	42		meaning as defined in 29 U.S.C. § 1002(40); and
44	43		(iv) "Plan-sponsoring organization" means an association that:
45	44		(a) Sponsors a multiple employer welfare arrangement
46	45		comprised only of banks;
47	46		(b) Has been actively in existence for at least five (5)
48	47		years;
49	48		(c) Has at least one (1) substantial business purpose
50	49		unrelated to offering and providing health insurance coverage or
51	50		other employee benefits to its employer members and their
52	51		employees; provided, that offering and providing such coverage or
53	52		benefits may serve as the association's primary purpose;
54	53		(d) Does not condition membership in the association on
55	54		any health status-related factor relating to an individual, including
56	55		an employee of an employer or a dependent of an employee;
57	56		(e) Makes health insurance coverage offered through the
58	57		association available to all members regardless of any health
59	58		status-related factor relating to the members or individuals eligible
60	59		for coverage through a member; and
61	60		(f) Does not make health insurance coverage offered
62	61		through the association available other than in connection with a
63	62		member of the association.
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68	67		(B) A foreign multiple employer welfare arrangement is deemed a
69	68		domestic multiple employer welfare arrangement if the foreign multiple employer
70	69		welfare arrangement:
71	70		(i) Is comprised only of banks together with their plan-sponsoring
72	71		organization, and their respective employees;
73	72		(ii) Is duly licensed as a multiple employer welfare arrangement
74	73		by the regulatory agency having jurisdiction over the regulation of
75	74		insurance in a state physically contiguous to this state;
76	75		(iii) Has no more than two thousand five hundred (2,500)
77	76		residents of this state who are employees of its member banks enrolled in
78	77		or receiving health, sickness, and accident benefits as insureds,
79	78		members, enrollees, or subscribers of the multiple employer welfare
80	79		arrangement;
81	80		(iv) Is subject to adequate regulatory oversight by the contiguous
82	81		domiciliary state, including, but not limited to, solvency examination
83	82		authority and actuarially sound reserve-adequacy requirements, as
84	83		determined in the commissioner's sole discretion; and
85	84		(v) Applies for and receives a certificate of authority from the
86	85		commissioner to operate as a foreign multiple employer welfare
87	86		arrangement.
88	87		(C) The commissioner may, in the commissioner's sole discretion, waive
89	88		any portion of this chapter, and any portion of chapter 7 of this title, for a
90	89		qualifying multiple employer welfare arrangement upon a determination that the
91	90		multiple employer welfare arrangement is subject to reasonable and adequate
92	91
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95	94
96	95		oversight by the regulatory agency having jurisdiction over the regulation of
97	96		insurance in the multiple employer welfare arrangement's domicile.
98	97		SECTION 2. Tennessee Code Annotated, Section 56-26-204, is amended by deleting
99	98		subsections (b) and (c) and substituting:
100	99		(b) The commissioner may promulgate rules in accordance with the Uniform
101	100		Administrative Procedures Act, compiled in title 4, chapter 5, as deemed necessary to
102	101		provide for the solvency, administration, examination, and enforcement of the pooling
103	102		agreements. However, the rules must not prohibit or deter any association lawfully
104	103		formed under the laws of this state or another state from offering health insurance
105	104		coverage to its members within this state, including through a multiple employer welfare
106	105		arrangement, if the health insurance coverage complies with federal law. To the extent
107	106		deemed necessary by the commissioner, each employer member of the approved group
108	107		must be classified as a self-insurer as otherwise provided in this chapter.
109	108		(c) A pool created or deemed domestic under this section is subject to taxation
110	109		under chapter 4 of this title, filing and approval under this chapter, and laws for
111	110		protection of policyholders under chapter 7 of this title.
112	111		SECTION 3. This act takes effect upon becoming a law, the public welfare requiring it.