AN ACT relating to the Kentucky Health Insurance Authority and making an appropriation therefor.
     Establish Subtitle 17D of KRS Chapter 304 and create new sections thereof to establish the Kentucky health insurance authority as a nonprofit, independent, self-supporting de jure municipal corporation and political subdivision of the Commonwealth to provide health insurance for individuals, small employers, and state employees; provide that the authority shall be entirely self-supporting except for initial funding for start-up; prohibit the authority or its liabilities from being deemed a debt or liability of the Commonwealth or a pledge of the faith and credit of the Commonwealth; define small employer as an employer who employs at least two but not more than 50 employees during the year; require the authority to be governed by a board of directors which shall function in a manner similar to the governing body of a mutual insurance company; specify the powers and duties of the board; direct the board to hire a chief executive officer, subject to confirmation by the Senate, to conduct the day-to-day operations of the authority; specify the duties of the chief executive officer; empower the authority to provide health benefit plan coverage to any individual residing in the Commonwealth or small employer doing business in the Commonwealth who tenders the required premium and complies with conditions and qualifications adopted by the authority; direct the authority to provide coverage to any small employer who is unable to obtain coverage in the voluntary market unless the small employer has not paid all moneys due the authority or owes undisputed premiums to a previous health insurance carrier or to a health insurance residual market mechanism; permit the authority to bid on the state employee health insurance contract; authorize the authority to establish rates and require the rates to be filed with the commissioner of insurance in the same manner as any other mutual insurance company; waive application of surplus requirements until the authority has been in operation for seven years, unless modified by the General Assembly; require the authority to report to the Interim Joint Committee on Banking and Insurance no later than October 31 of each year on the status of its efforts to build and maintain a surplus; permit the board to declare an annual dividend; require the chief executive office to prepare a report quarterly on assets and liabilities which shall be a public record and provided to the board, the Governor, and the Legislative Research Commission; require the filing of an annual report on business done; permit the board to levy an assessment on policyholders if the assets are less than the liabilities in compliance with the law on mutual insurance companies; direct the board to formulate an investment policy; require the chief executive officer to compile and maintain statistical and actuarial data to determine proper premium levels; prohibit the authority from receiving any direct state general fund appropriation; direct the Governor and the secretary of the Finance and Administration Cabinet to determine initial funding which may include a loan of up to $7,000,000 from state agencies to be repaid over a period not to exceed ten years; authorize the Governor to provide or secure additional funding for the first 36 months of operation to maintain sufficient surplus; authorize any executive branch agency and any public corporation created by the Commonwealth to lend money to the authority; require the authority to use only licensed insurance agents; provide that no board member, the chief executive officer, or employee of the authority shall be personally liable for acts performed in an official capacity; require the board members, the chief executive officer, and employees of the authority to comply with the executive branch code of ethics; exempt the authority from joining any guarantee or insolvency fund; require the board to comply with the open meetings and open records laws; direct the Attorney General and Auditor of Public Accounts to monitor the operations of the authority.

     Jan 7-introduced in House
     Feb 1-to Banking and Insurance (H)
     Feb 4-reassigned to Labor and Industry (H)
     Feb 10-posted in committee