Signed by Governor Matt Bevin

Vote Smart's Synopsis:

Vote to concur with senate amendments and pass a bill that expands access to Association Health Plans (AHPs).

Highlights:

• Amends and expands the definition of “employer-organized association” to include any entity or association of employers who have been actively in existence for the previous 2 years and formed under the Employee Retirement Income Security Act to provide an employee welfare benefit plan under guidance issued by the United States Department of Labor (Sec. 1).

• Defines “health benefit plan” to include any of the following, including (Sec. 1):

• Hospital or medical expense policy or certificate;

• Nonprofit hospital, medical-surgical, and health service corporation contract or certificate;

• Provider sponsored integrated health delivery network;

• Self-insured plan or a plan provided by a multiple employer welfare arrangement;

• Self-insured government plan or church plan; or

• Health benefit plan that affects the rights or a Kentucky.

• Specifies that a “health benefit plan” does not include the following (Sec. 1):

• Policies covering only accident, credit, dental, disability, income, fixed indemnity medical expense reimbursement, long-term care, medicare supplement, specified disease, or vision care;

• Coverage issued as a supplement to liability insurance, insurance arising out of a workers’ compensation or similar law, or automobile medical-payment insurance;

• Student health insurance offered by a Kentucky-licensed insurer under written contract with a university or college whose students it proposes to insure;

• Medical expense reimbursement policies designed to fill gaps in primary coverage, coinsurance, or deductible and provided under a separate policy, certificate, or contract; or

• Coverage supplemental to the coverage provided under Chapter 55 of Title 10, United States Code or direct primary care agreements.

• Defines “large group” to include a fully-insured employer-organized association that covers at least 51 percent of employee members and is registered with the Department of Labor (Sec. 1).

• Amends the definition of “insurer” to include a governmental plan or church plan (Sec. 1).

• Specifies that unless written consent of the employer-organized association is filed with the Department of Labor, the index rate for the employer-organized association shall be calculated solely with respect to that employer-organized association and shall not be tied, linked to, or otherwise adversely affected by the other index rate used by the issuing insurer (Sec. 2).

Full Bill Text