Group health benefit plans; bona fide associations, benefits consortium. (SB1689)
Introduced By
Sen. Siobhan Dunnavant (R-Henrico) with support from co-patron Sen. Bill DeSteph (R-Virginia Beach)
Progress
✓ |
Introduced |
✓ |
Passed Committee |
✓ |
Passed House |
✓ |
Passed Senate |
✗ |
Signed by Governor |
✗ |
Became Law |
Description
Group health benefit plans; bona fide associations; benefits consortium. Provides that certain trusts constitute a benefits consortium and are authorized to sell health benefits plans to members of a sponsoring association that is a nonstock corporation, has five or more members participating in one or more benefits plans, has been formed for purposes other than obtaining or providing health benefits, and operates as a nonprofit entity under § 501(c)(6) of the federal Internal Revenue Code. The bill provides that a person may be a member of sponsoring association without having any employees if the person is a sole proprietorship, a corporation with a single shareholder, or a limited liability company with a single member. The bill provides that the trust is subject to the federal Employee Retirement Income Security Act of 1974 and U.S. Department of Labor regulations applicable to multiple employer welfare arrangements and to the authority of the U.S. Department of Labor to enforce such law and regulations. The bill (i) prohibits a self-funded multiple employer welfare arrangement (MEWA) from issuing health benefit plans in the Commonwealth until it has obtained a license from the State Corporation Commission; (ii) provides that health benefit plans issued by a self-funded MEWA shall be subject to taxes and maintenance assessments levied upon insurance companies; (iii) provides that health benefit plans issued by a self-funded MEWA are subject to protections of and other provisions of the Virginia Life, Accident and Sickness Insurance Guaranty Association; (iv) makes domestic self-funded MEWAs subject to all financial and solvency requirements imposed by provisions of Title 38.2 on domestic insurers unless domestic self-funded MEWAs are otherwise specifically exempted; and (v) provides that health benefit plans issued by a self-funded MEWA shall be exempt from all statutory requirements relating to insurance premium rates, policy forms, and policy cancellation and nonrenewal. The bill provides that the sponsoring association shall not, by virtue of its sponsorship of the benefits consortium or any benefits plan, be subject to the insurance laws of the Commonwealth or the tax levied on insurance companies pursuant to § 58.1-2501. The measure removes the requirements that an association to which a group accident and sickness insurance policy is issued has at the outset a minimum of 100 persons, has been organized and maintained in good faith for purposes other than that of obtaining insurance, and has been in active existence for at least five years. The measure also replaces references to "bona fide association," as used in provisions applicable to health care plans in the small employer market, with the term "sponsoring association." Read the Bill »
Outcome
History
Date | Action |
---|---|
01/14/2019 | Presented and ordered printed 19103876D |
01/14/2019 | Referred to Committee on Commerce and Labor |
01/29/2019 | Impact statement from SCC (SB1689) |
01/31/2019 | Reported from Commerce and Labor with substitute (11-Y 4-N) (see vote tally) |
01/31/2019 | Committee substitute printed 19106257D-S1 |
01/31/2019 | Incorporates SB1351 (Wagner) |
01/31/2019 | Incorporates SB1353 (Wagner) |
01/31/2019 | Incorporates SB1712 (Vogel) |
01/31/2019 | Rereferred to Finance |
01/31/2019 | Reported from Finance (12-Y 4-N) (see vote tally) |
02/04/2019 | Constitutional reading dispensed (40-Y 0-N) (see vote tally) |
02/05/2019 | Read second time |
02/05/2019 | Reading of substitute waived |
02/05/2019 | Committee substitute agreed to 19106257D-S1 |
02/05/2019 | Engrossed by Senate - committee substitute SB1689S1 |
02/05/2019 | Constitutional reading dispensed (39-Y 0-N) (see vote tally) |
02/05/2019 | Passed Senate (28-Y 12-N) (see vote tally) |
02/08/2019 | Placed on Calendar |
02/08/2019 | Read first time |
02/08/2019 | Referred to Committee on Commerce and Labor |
02/11/2019 | Impact statement from SCC (SB1689S1) |
02/14/2019 | House committee, floor amendments and substitutes offered |
02/14/2019 | Reported from Commerce and Labor with amendments (16-Y 3-N) (see vote tally) |
02/18/2019 | Read second time |
02/19/2019 | Read third time |
02/19/2019 | Committee amendments agreed to |
02/19/2019 | Engrossed by House as amended |
02/19/2019 | Passed House with amendments (61-Y 38-N) |
02/19/2019 | VOTE: PASSAGE (61-Y 38-N) (see vote tally) |
02/20/2019 | House amendments agreed to by Senate (33-Y 7-N) (see vote tally) |
02/20/2019 | Reconsideration of House amendments agreed to by Senate (40-Y 0-N) (see vote tally) |
02/20/2019 | House amendments agreed to by Senate (28-Y 12-N) (see vote tally) |
02/23/2019 | Enrolled |
02/23/2019 | Bill text as passed Senate and House (SB1689ER) |
02/23/2019 | Signed by President |
02/23/2019 | Signed by Speaker |
02/26/2019 | Impact statement from SCC (SB1689ER) |
03/04/2019 | Enrolled Bill Communicated to Governor on March 4, 2019 |
03/04/2019 | G Governor's Action Deadline Midnight, March 26, 2019 |
03/26/2019 | Governor's recommendation received by Senate |
03/26/2019 | Governor's substitute printed 19107825D-S2 |
04/03/2019 | Senate rejected Governor's recommendation (6-Y 32-N) (see vote tally) |
04/03/2019 | Communicated to Governor |
04/03/2019 | G Governor's Action Deadline Midnight, May 3, 2019 |
05/02/2019 | G Vetoed by Governor |