Senate Bill 86 Summary

• Establishes "Path 2 MEWA" (Multiple Employer Welfare Arrangement) framework allowing associations of employers to offer group health plans to small businesses and self-employed individuals with no employees while maintaining federal consumer protections.

• Requires sponsoring associations to meet structural requirements including constitution/bylaws, regular meetings, dues collection, board of trustees oversight, and at least one substantial business purpose unrelated to health insurance.

• Mandates group health plans provide minimum 60% actuarial value coverage for hospital and physician services, cover at least 500 eligible individuals at outset, and maintain one month's premium as minimum net worth held in trust.

• Prohibits discrimination based on health status, medical conditions, claims experience, genetic information, or disability in eligibility and premium setting for covered individuals.

• Becomes effective October 1, 2019 for contracts entered into, amended, or renewed on or after January 1, 2020; directs Department of Insurance to study feasibility of federal 1332 waiver request to expand coverage to working owners and multi-state employers.