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2014 SESSION

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HB 1057 Benefits consortium; exemption and exclusions.

Introduced by: Terry G. Kilgore | all patrons    ...    notes | add to my profiles

SUMMARY AS PASSED HOUSE: (all summaries)

Benefits consortium; exemption and exclusions. Exempts a benefits consortium and the benefits consortium's sponsoring association from the Commonwealth's insurance laws and regulations, including those otherwise applicable to multiple employer welfare arrangements, and from the premium tax levied on insurance companies. A benefits consortium will be permitted to provide medical, prescription drug, dental, and vision benefits to employees of the sponsoring association and its members and the dependents of those employees through benefits plans. A benefits consortium is a trust that satisfies certain conditions, including (i) being subject to federal regulations applicable to multiple employer welfare arrangements and the enforcement authority of the U.S. Department of Labor; (ii) filing forms for the applicable plan year with the U.S. Department of Labor identifying the arrangement among the trust, sponsoring association, and benefit plans offered through the trust as a multiple employer welfare arrangement; (iii) operating as a nonprofit voluntary employee beneficiary association within the meaning of § 501(c)(9) of the Internal Revenue Code; (iv) providing that the trust's funds are to be used for the benefit of the participating employees, and their dependents, through insurance, self-insurance, or a combination thereof; (v) establishing and maintaining reserves determined in accordance with sound actuarial principles; (vi) purchasing and maintaining policies of specific, aggregate, and terminal excess insurance with retention levels determined in accordance with sound actuarial principles; and (vii) securing guarantees or standby letters of credit guaranteeing the payment of claims. The bill has a delayed effective date of January 1, 2015, and is identical to SB 120.


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