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Insurance Data Security Act Passes Iowa House
Friday, March 12, 2021The House unanimously passed the Insurance Data Security Act Tuesday. The Iowa Insurance Division (IID) drafted HF 719 using a NAIC model bill and later revised it to ensure the measure would not create unnecessary administrative hurdles. The bill now goes to the Senate for further consideration. A Senate version, SF 553 already cleared the full Commerce Committee in that chamber, making it eligible for floor debate.
The House also advanced IID’s omnibus bill, HF 838 through the Appropriations Committee Thursday morning. It passed along party lines with House Democrats raising concerns about provisions regarding State Innovation Waivers under the Affordable Care Act (“ACA”). The bill is now eligible for consideration on the House floor.
On the Senate side, the chamber unanimously passed electronic document legislation. While Iowa Code already allows digital records and recognizes electronically signed contracts, SF 541 would expand that provision to distributed ledger technology and smart contracts. It now goes to the House for consideration.
Meanwhile, the nonpartisan Legislative Services Agency (LSA) released a fiscal note this week outlining the cost of PBM legislation to the state employee health insurance plan. Among other things, HF 729 would tighten regulations on how PBMs assess fees, reimburse pharmacies, and determine cost-sharing with consumers. LSA reports the measure would cost the state an additional $10.2 million annually. “This is due in part to the increase in drug expenses after cost-saving measures are eliminated, and also due to the increased reimbursement amount per unit for filling prescriptions,” the agency wrote. The bill has passed out of committee, making it eligible for debate on the House floor.