This bill amends the Professional Employer Organization Registration Act in Nebraska, specifically focusing on the provisions related to health benefit plans and employee welfare benefit plans. Key changes include the introduction of new requirements for health benefit plans offered by professional employer organizations (PEOs). These plans must either be fully insured by an authorized insurer or self-funded, with specific stipulations regarding the management of plan assets, actuarial standards, and reporting obligations to the state. Additionally, the bill mandates that PEOs provide written notice to covered employees about the nature of their health benefit plans and includes provisions for compliance hearings if a PEO fails to meet these requirements.

The bill also clarifies the employer status of both clients and PEOs under state law for the purposes of sponsoring retirement and employee welfare benefit plans. It establishes that a health benefit plan offered to covered employees by a single PEO will be treated as a single employee welfare benefit plan, exempting it from the registration requirements of the Multiple Employer Welfare Arrangement Act. Furthermore, it ensures that all covered employees of a client participating in a health benefit plan are considered employees of the PEO for insurance purposes, thereby streamlining the process for insurers to accept and insure these employees. The original sections of the law that are being amended are repealed as part of this legislative update.

Statutes affected:
Introduced: 48-2706, 48-2708
Final Reading: 48-2706, 48-2708