The proposed bill, if enacted, would amend current statutes regarding bona fide associations by removing the classification and requirements for a "path 2" bona fide association. Specifically, it would eliminate the existing criteria that associations must meet under federal law to qualify as a path 2 association. Instead, the bill stipulates that any association meeting the definition of an employer under the Employee Retirement Income Security Act (ERISA) would qualify as a bona fide association. This change aims to simplify the qualifications for associations seeking to provide health benefits.

Additionally, the bill modifies the definition of "small employer" and clarifies that the requirements for health benefits plans do not apply to accountable health plans that offer coverage through bona fide associations. It also allows for the operation of self-funded multiple employer welfare arrangements through bona fide associations, statewide chambers of commerce, or business leagues that meet specific criteria. Overall, these updates aim to streamline the process for associations to provide health insurance while ensuring compliance with federal regulations.

Statutes affected:
Introduced Version: 20-2324