HB 329 - SB 286
FISCAL NOTE
Fiscal Review Committee
Tennessee General Assembly
February 8, 2025
Fiscal Analyst: Laura Moore | Email: laura.moore@capitol.tn.gov | Phone: 615-741-2564
HB 329 - SB 286
SUMMARY OF BILL: Deems certain foreign multiple employer welfare arrangements
(MEWA) that are comprised only of banks and plans-sponsoring organizations as domestic
MEWAs, provided such MEWAs also meet other specified conditions.
FISCAL IMPACT:
STATE GOVERNMENT
REVENUE General Fund
FY25-26 $1,100
Assumptions:
• Pursuant to the proposed legislation, a foreign MEWA is deemed a domestic MEWA if
the foreign MEWA:
o Is comprised only of banks together with their plan-sponsoring organization, and
their respective employees;
o Is duly licensed as a multiple employer welfare arrangement by the regulatory
agency having jurisdiction over the regulation of insurance in a state physically
contiguous to this state;
o Has no more than 2,500 residents of this state who are employees of its member
banks enrolled in or receiving health, sickness, and accident benefits as insureds,
members, enrollees, or subscribers of the multiple employer welfare arrangement;
o Is subject to adequate regulatory oversight by the contiguous domiciliary state,
including, but not limited to, solvency examination authority and actuarially sound
reserve-adequacy requirements, as determined by the Commissioner of the
Department of Commerce and Insurance (DCI) in the Commissioner's sole
discretion; and
o Applies for and receives a certificate of authority from the Commissioner to
operate as a foreign multiple employer welfare arrangement.
• According to the DCI rules pursuant to Chapter 0780-1-76 titled Self-Insurance Associations
and Non-Profit Business Coalitions for Health, a person may not establish as a MEWA in this
state without a certificate of authority issued to the arrangement by the Commissioner of
DCI.
• Pursuant to Tenn. Code Ann. § 56-4-101(a)(1), the application fee to be established as a
MEWA is $675.
• Pursuant to Tenn. Code Ann. § 56-4-101(a)(2), upon acceptance of the application, DCI
will collect an additional fee of $440 for issuing each new certificate of authority.
HB 329 - SB 286 2
• Based on information provided by DCI, one new application for a MEWA is estimated to
be filed in FY25-26 as a result of the proposed legislation. It is not known if any additional
MEWAs will seek certification in any subsequent year. None are assumed in this analysis.
• The increase in state revenue is estimated to be $1,115 ($675 application fee + $440
certificate fee x 1 entity) in FY25-26.
IMPACT TO COMMERCE:
NOT SIGNIFICANT
Assumptions:
• The proposed legislation authorizes, for purposes of pooling liabilities for qualification as a
self-insurer, a foreign MEWA to be deemed a domestic MEWA if the foreign MEWA
meets all of the established criteria.
• It is assumed that qualified employers will engage in such activity if it is economically
beneficial to do so. Due to multiple unknown variables, the precise impact on business
revenue and expenses cannot be quantified with reasonable certainty. However, the overall
impact on commerce and jobs in this state is estimated to be not significant.
CERTIFICATION:
The information contained herein is true and correct to the best of my knowledge.
Bojan Savic, Executive Director