Senate File 565 establishes provisions for health insurance coverage for the surviving spouses and children of eligible state employees in Iowa who die as a result of a traumatic personal injury incurred during their work duties. The bill defines an eligible employee as one who was participating in a state health or medical group insurance plan at the time of their death, with specific exclusions for deaths resulting from stress, intentional misconduct, voluntary intoxication, or gross negligence. The governing body of the state is required to allow continuation of existing health insurance coverage or reenrollment for the surviving family members, and they must notify the insurance provider of the eligible individuals.

Additionally, the bill clarifies that while the state is not obligated to cover the costs of the health insurance, it may choose to do so, and if not, the surviving spouse and children can continue coverage by paying the remaining costs. The legislation also stipulates that continuation of coverage is not required if the surviving family members contributed to the employee's death or if they become ineligible for coverage for reasons unrelated to the employee's death. Importantly, the provisions of this act are retroactively applicable to January 1, 2024.