HB 06710 Summary

• Requires self-funded multiple employer welfare arrangements (MEWAs) to obtain a license from the Insurance Commissioner and comply with strict requirements including essential health benefits coverage, minimum 60% actuarial value, prohibition of preexisting condition exclusions, and implementation of value-based insurance design programs.

• Establishes governance structure for self-funded MEWAs through trusts with boards of at least five trustees, requiring stop-loss insurance, fiduciary liability insurance, bonds, and reserves calculated per National Association of Insurance Commissioners standards.

• Mandates fully insured MEWAs meet requirements as large group market plans under the Affordable Care Act and state mandated coverage laws, with availability limited to participating employers of the sponsoring association.

• Revises small employer health insurance regulations to clarify rating methodologies, renewal rights, and prohibited unfair practices for carriers and producers, including restrictions on health status-based discrimination and compensation variations.

• Creates a task force to study stop-loss insurance structure and impacts on small groups and medical spending in the state, with findings due by February 1, 2024, composed of representatives from legislative leadership, healthcare providers, business, labor, and consumer advocacy organizations.