S.F. No. 0104

Health insurance-small employer carrier reinsurance.

Sponsored By: Senator(s) Case and Representative(s) Gingery

AN ACT relating to health insurance; amending the small employer carrier reinsurance program; authorizing separate pools for reinsured persons; expanding the program as specified; authorizing reduced premium rates; and providing for an effective date.

1/11/2005 Bill Number Assigned

1/13/2005 S Received for Introduction

1/14/2005 S Introduced and Referred to S07

1/27/2005 S07 Recommended Amend and Do Pass

ROLL CALL

Ayes: Senator(s) Johnson, Meier, Mockler and Scott

Excused: Senator(s) Hanes

Ayes 4 Nays 0 Excused 1 Absent 0 Conflicts 0

1/27/2005 S Placed on General File

SF0104SS001/ADOPTED

Page 1-line 4 After "rates;" insert "creating an account within the trust and agency fund as specified; providing for an insurance carrier assessment as specified; providing an insurance premium tax credit as specified;".

Page 1-after line 7 Insert and renumber:

"Section 1.  W.S. 26-19-311 and 26-19-312 are created to read:

26-19-311.  Small employer carrier reinsurance account created.

There is created an account within the trust and agency fund in which all money received or collected to support the small employer carrier reinsurance program created pursuant to this act shall be credited and continuously appropriated for the purposes of this act. All claims, insurer reimbursements, cost of administration and other necessary expenses incurred pursuant to this act shall be paid from the account. All money in the account not immediately necessary for the purposes of this act, which amount is certified by the board to the state treasurer, shall be invested and any interest earned shall be credited to the account.

26-19-312.  Small employer carrier reinsurance program assessments; premium tax credit.

(a)  After each calendar year, the board shall determine the amount of assessment needed to support the small carrier reinsurance program considering all payments made, costs incurred, premiums received and other income received.

(b)  All insurers liable for premium tax shall be assessed as necessary to meet the requirements determined under subsection (a) of this section. The assessment shall be in proportion to the gross premium tax owed and shall be expressed as a percentage of the gross premium tax owed. The gross premium tax is the premium tax owed before any deduction for any assessments. The assessment pursuant to this subsection for any individual insurer shall not exceed forty percent (40%) of the gross premium tax owed.

(c)  On or before May 1 of each year, the board shall determine each insurer's assessment for the calendar year. Any deficit incurred by the program shall be recouped by assessment apportioned as provided by this section. Notification of assessments shall be mailed by the board not later than May 1 of each year.

(d)  The total amount of assessment paid by any insurer pursuant to this section shall be allowed as a credit against any premium tax owed by the member under this code for the year for which the assessment is payable. If assessments exceed the premium tax owed considering all assessments pursuant to this act and other acts, the credits may be carried forward to other tax years until used.

(e)  If assessments exceed actual losses and administrative expenses of the program, the excess shall be paid to the state treasurer, credited to the account created by W.S. 26-19-311 and used by the administrator to offset future losses or to reduce program premiums. As used in this subsection, "future losses" includes reserves for incurred but unreported claims.

(f)  The board may require initial calendar year 2005 and interim assessments as reasonably necessary for the organizational, administrative and interim operating expenses of the program and to pay claims in excess of premiums collected. Any initial or interim assessments shall be credited as offsets against any regular assessment due following the close of the calendar year.

(g)  Assessments collected pursuant to the small employer carrier reinsurance program shall be paid to the state treasurer and credited to the account created by W.S. 26-19-311.".

Page 1-line 9 Delete "1" insert "2".

Page 3-line 3 Delete "up to" insert "between one and one-tenth (1.1) and".

Page 3-line 8 Delete "up to" insert "between one and one-half (1.5) and".

Page 3-line 10 Delete "." insert ";".

Page 3-after line 10 Insert:

"(iii)  The premiums shall be kept as close as practical to the lower limits provided by this subsection except to the extent needed to keep the assessments needed within the forty percent (40%) of premium tax limit pursuant to W.S. 26-19 312(b).".

Page 3-line 12 Delete "2." insert "3.  Section 1 of this act is effective immediately upon completion of all acts necessary for a bill to become law as provided by Article 4, Section 8 of the Wyoming Constitution. Section 2 of".  MEIER, CHAIRMAN

SF0104SW001/ADOPTED

Page 1-line 4 After the Senate Standing Committee Amendment to this line (SF0104SS001/A) insert "repealing existing assessment provisions;".

Page 3-after line 10 After the Senate Standing Committee Amendment to this line (SF0104SS001/A) insert and renumber:

"Section 3.  W.S. 26-19-307(n) is repealed."

Page 3-line 12 Delete the Senate Standing Committee Amendment to this line (SF0104SS001/A) and further amend as follows: Delete "2" insert "4. Sections 1 and 3 of this act are effective immediately upon completion of all acts necessary for a bill to become law as provided by Article 4, Section 8 of the Wyoming Constitution. Section 2 of". SCOTT

2/3/2005 S Passed CoW

2/4/2005 S Passed 2nd Reading

2/7/2005 S Passed 3rd Reading

ROLL CALL

Ayes: Senator(s) Anderson, J., Aullman, Barrasso, Boggs, Burns, Case, Coe, Cooper, Decaria, Geis, Hanes, Hawks, Hines, Jennings, Job, Johnson, Larson, Massie, Meier, Mockler, Nicholas, Northrup, Peck, Ross, Schiffer, Scott, Sessions, Townsend, Vasey and Von Flatern.

Ayes 30 Nays 0 Excused 0 Absent 0 Conflicts 0

2/8/2005 H Received for Introduction

2/9/2005 H Introduced and Referred to H07

2/22/2005 H07 Recommended Amend and Do Pass

ROLL CALL

Ayes: Representative(s) Barnard, Gingery, Latta, Martin, McOmie, Miller and Olsen

Nays: Representative(s) Illoway

Excused: Representative(s) Diercks

Ayes 7 Nays 1 Excused 1 Absent 0 Conflicts 0

2/22/2005 H Placed on General File; Did Not Consider in CoW