Bill Description: House Bill 38 would impose new regulations on health insurance co-ops and remove a cap on fees.

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NOTE: The rating and analysis for this bill have been updated since its initial publication.

Does it give government any new, additional, or expanded power to prohibit, restrict, or regulate activities in the free market? Conversely, does it eliminate or reduce government intervention in the market?

House Bill 38 amends sections 41-4303, 41-4305, and 41-4309, Idaho Code, which are part of the Life and Health Insurance Guaranty Association Act. While these amendments involve a number of updates and changes, two stand out. The first would require health insurance CO-OPs created under the Affordable Care Act to become members of the Idaho Life and Health Insurance Guaranty Association, abide by its rules, and pay its assessments. (The bill does this by removing "a consumer operated and oriented plan established under section 1322 of the patient protection and affordable care act, P.L. 111-148" from a list of entities excluded from the definition of "member insurer.")

Under current law, these CO-OPs are neither required nor allowed to participate in the association. Under this bill, they would be required to become members. For some organizations, being allowed to join could be a benefit; for others, the requirement could be unwelcome.

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Does it directly or indirectly create or increase any taxes, fees, or other assessments? Conversely, does it eliminate or reduce any taxes, fees, or other assessments?

House Bill 38 would also strike a $300 per-member, per-year cap on the "total of all non-pro rata assessments," leaving this fee up to "the discretion of the board of directors."

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