Bill Summary for S 86 (2019-2020)

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Summary date: 

Mar 7 2019

Bill Information:

View NCGA Bill Details2019-2020 Session
Senate Bill 86 (Public) Filed Tuesday, February 19, 2019
Intro. by Bishop, Krawiec, Edwards.

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Bill summary

Senate committee substitute makes the following changes to the 1st edition.

Part I

Modifies and adds to the previously modified requirements for MEWA (multiple employer welfare arrangement) licensure set out in GS 58-49-40. Now requires a MEWA to be established by a group of employers under an association (not previously required) (1) having a constitution and bylaws, (2) organized and maintained in good faith for a continuous period of at least two years (previously, for a continuous period of two years for purposes other than that of obtaining or providing insurance), and (3) with at least one substantial business purpose unrelated to offering and providing health coverage or other employee benefits to its employer members and their employees (previously proposed as a separate requirement). Adds a new requirement for the MEWA to have at least 500 covered lives. Makes organizational changes. Makes conforming changes to proposed GS 58-49-40(h), regarding treatment of a MEWA as having a commonality of interest. Further amends GS 58-49-40, enacting a new subsection to specify that a newly created association is deemed to have been organized and maintained for as long as its newest constituent association has been in existence as applicable to MEWA licensure qualifications. 

Part II

Modifies the proposed changes to GS 58-51-80, concerning requirements for group accident and health insurance policies and contracts. Further specifies that, as used in the provisions concerning premium payment under a policy issued to an employer or to the trustee of a fund established by an employer or two or more employers in the same industry or kind of business whereby the employer is the policyholder and the policy covers employees or agents for amounts of insurance based on a plan, employer includes a MEWA that has at least 500 covered lives and is classified by the US Department of Labor as a bona fide group or association under either any US Department of Labor advisory opinion addressing specified circumstances or the specified section of the Employee Retirement Income Security Act and its implementing regulations, including 29 CFR, Part 2510 (containing the definitions of certain terms; previously, implementing regulations were not included).

Adds to the proposed changes to GS 58-57-80 to specify that a newly created association is deemed to have been organized and maintained for as long as its newest constituent association has been in existence, as applicable to the requirements concerning policies issued to an association or to a trust or trustees of a fund established, created, or maintained for the benefit of members of one or more associations. Makes organizational and clarifying changes.