HB4256 - Health Care Funding Act Summary

• Creates the Health Care Funding Association, a not-for-profit corporation to collect quarterly assessments from health carriers, HMOs, third-party administrators, self-insurers, and other health care entities to fund immunizations and health care information lines not covered by federal or state funding.

• Establishes two special funds in the state treasury: the Immunization Program Fund and the Health Care Information Line Fund, with a third fund (Health Care Funding Act Administration Fund) receiving 5% of collected assessments for Department of Public Health administrative costs.

• Requires assessed entities to report covered lives quarterly and pay per-member-per-month assessments calculated by age groups (children under 19, adults 19-64, seniors 65+), with assessment rates set to cover program costs, association operating expenses, reserves, and interest on unpaid amounts at 1% monthly.

• Board of directors includes the Directors of Public Health and Insurance plus representatives from health carriers, providers, and third-party administrators, with authority to adopt bylaws, approve the plan of operation, and pursue legal action for unpaid assessments.

• Assessments do not become due before January 1, 2025; assessments are considered medical benefit costs for rate-setting purposes; and the association is tax-exempt from state and local taxation.