HB 449 Summary

• Establishes a nonprofit small business health insurance pool allowing employers with 2-9 employees to obtain group health coverage with premium incentive payments, employee premium assistance payments, and tax credits administered by the Insurance Commissioner.

• Creates a seven-member board of directors (appointed by Commissioner and Governor) to oversee the pool's operations, set eligibility criteria, approve health plans, and manage premium payment schedules, with the pool becoming operational January 1, 2017.

• Provides eligible small employers tax credits of up to $100-$125 monthly per employee and $40 monthly per dependent (capped at 50% of total premiums), or alternatively, monthly premium incentive and assistance payments if employer had no group plan in prior two years.

• Authorizes the Division of Medicaid to seek federal Section 1115 waiver to provide Medicaid matching funds for employee premium assistance payments based on income eligibility.

• Establishes penalties including fines up to $25,000 and criminal charges for fraudulently obtaining premium payments or tax credits; dedicates fines and restitution to a special fund for program administration and expansion.