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Committee sends bill to add Idaho insurers to life-and-health guarantee association to Senate floor
Summary
The Senate Commerce and Human Resources Committee voted to send House Bill 38 to the floor after Representative Jeff Ehlers and a Mountain Health Co-op representative described four technical changes to Idaho’s Life and Health Insurance Guarantee Association.
Representative Jeff Ehlers, appearing before the Senate Commerce and Human Resources Committee, asked senators to send House Bill 38 to the Senate floor, saying the bill updates Idaho’s Life and Health Insurance Guarantee Association to match national standards and protect Idaho policyholders.
Ehlers, identified himself as Representative Jeff Ehlers of District 21 (Meridian). He told the committee the bill makes four changes: it excludes secondary purchasers of life policies from association coverage, clarifies how rate rollbacks are handled, allows consumer-oriented co-ops created under the Affordable Care Act to join the association, and removes a statutory $300 cap on association membership fees.
The bill’s first change would prevent factoring companies or investors who buy policies from being covered by the association, Ehlers said, explaining the association was designed to protect the original policyholder. The second change, he said, clarifies that the guarantee association will not be liable for artificially high rates sold by high‑risk actors and that payouts should reflect standard market rates.
On the third change, Ehlers said many co-ops created under the Affordable Care Act were previously excluded because they were treated as higher risk; the bill would allow an Idaho-based co-op doing business here to be a member. Bruce Spencer of Mountain Health Co‑op testified in support, saying Mountain Health Co‑op covers more than 11,000 Idahoans and “is happy to join the guarantee association and provide greater security.”
The fourth change would remove a static $300 cap on association administrative fees, Ehlers said, allowing the industry association to adjust its fees without repeatedly returning to the Legislature. He emphasized these are industry member fees, not tax-funded assessments.
After testimony and no further committee questions, Senator Lakey moved and Senator Ward Engelking seconded a motion to send House Bill 38 to the Senate floor with a “do pass” recommendation. The motion carried by voice vote; the committee chair recorded “Aye” and declared the bill sent to the floor.
The measure’s floor sponsor in the Senate will be Senator Lakey, Ehlers said, and the committee offered no amendments during the hearing.
Votes at a glance: House Bill 38 — motion to send to the Senate floor with a due pass (mover: Senator Lakey; second: Senator Ward Engelking). Outcome: passed by committee voice vote; exact roll-call not recorded.
