Business Committee introduces bill to repeal small-employer reinsurance program

The Idaho House Business Committee introduced RS 31818, a bill to repeal the state's small-employer reinsurance program, sponsor Representative Rod Furnace told the panel.

The measure would remove multiple code sections that formerly created a pooled fund for insurers to pay large claims for small employers. "This is a repeal of an unnecessary program, helps reduce cost in the industry. There's no fiscal impact on this repeal," Representative Rod Furnace, District 31, Rigby, said when he described RS 31818 to the committee.

Furnace told members the program traces to a 1993 Small Employer Insurance Availability Act that created a carrier-funded pool to smooth costs after large claims, but that the pool's last covered life was in 2016 and the program had been "null and void" by 2021. He said carriers still were required to pay for an annual audit while the program was winding down and that those audit costs were effectively zero.

Representative Rebecca Harris asked whether the Affordable Care Act had replaced the program. "The Affordable Care Act really, for small group, the Affordable Care Act really replaced the need for this program and so there's there's really no need for it as long as the ACA is prevalent," Furnace replied.

Representative Wheeler moved to introduce RS 31818. The committee approved the motion by voice vote; members said "aye" and the motion carried.

Furnace told the committee he was "unaware of any opposition to this, and the industry supports the repeal." No fiscal note or formal opposition was presented to the committee at introduction; the bill will move to a public hearing for further record and comment if scheduled by the committee.