This bill establishes a framework for nonstate public employees and officials to obtain health care coverage under the state health insurance plan in Iowa. It defines "nonstate public employee" as any employee or elected official of a nonstate public employer who is an active member of the Iowa public employees retirement system. Nonstate public employers, which include political subdivisions such as counties, cities, community colleges, and school districts, can apply for coverage for their employees under the state plan. The premium rates for these nonstate public employers will match those paid by state employees, and they are responsible for monthly premium payments and administrative fees, which will be deposited into a newly created Iowa health care coverage partnership program trust fund.

The bill also outlines the consequences for nonstate public employers that fail to make timely premium payments, including the potential for interest charges and the withholding of state funds until payments are made. Additionally, the Department of Administrative Services (DAS) is tasked with developing rules for the implementation of this program and is required to submit an annual report to the governor and the general assembly detailing the health care coverage provided to nonstate public employees. The provisions of this bill will take effect on July 1, 2027.