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. It introduces new requirements for health benefit plans offered by professional employer organizations (PEOs), stipulating that such plans must either be fully insured by an authorized insurer or self-funded with specific conditions. These conditions include utilizing a licensed third-party administrator, holding plan assets in a trust account, maintaining sound reserves, providing written notice to covered employees about the plan's status, and filing an annual report with detailed financial information. The bill also establishes compliance measures, including the possibility of a hearing and potential revocation of registration for non-compliance.

Additionally, the bill clarifies the status of employee welfare benefit plans offered by PEOs, stating that a health benefit plan for covered employees of a single PEO will be treated as a single employee welfare benefit plan under state law, exempting it from certain registration requirements. It also ensures that PEOs and their clients are both recognized as employers for the purposes of sponsoring retirement and employee welfare benefit plans. The bill repeals previous language that allowed for less stringent requirements regarding health benefit plans, thereby tightening regulations to enhance the protection and clarity for covered employees.

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