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HF 1016

Baldwin; base year formula aid provided.

2025-2026 Regular Session Introduced by Jeff Dotseth and 4 co-sponsors

Allows surviving spouses and children of certain state employees killed on the job to continue or reenroll in state health insurance, with cost sharing and eligibility rules.

Introduction and first reading, referred to Taxes
#citiesandtowns-specific #taxation
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Bill Summary · HF 1016

Summary — HF 1016 (Amendment H‑1278)

Status: Introduced April 17, 2025; amendment H‑1278 filed April 23 and adopted April 24, 2025. Referred to Taxes (earlier records show placement on Appropriations calendar). Amendment conforms bill to SF 565. Companion: SF 1553.

Purpose / Intent

To require the State to allow continuation or reenrollment in state group health insurance for the surviving spouse and each surviving child of certain state employees whose death is the direct and proximate result of a traumatic personal injury incurred in the performance of work duties. The provision is intended to preserve access to the employee’s state health coverage for families after a workplace fatality.

Key provisions

  • Creates new section 509A.13E establishing continuation/reenrollment rights for surviving spouses and children of an “eligible employee of the state of Iowa.”
  • Defines “eligible employee of the state of Iowa” as a state employee covered by a state health/medical group plan at time of death whose death is determined by the Department of Administrative Services (DAS) to be the direct and proximate result of a traumatic personal injury incurred while performing duties, subject to exclusions (see below).
  • Requires the state governing body to permit:
    • Continuation of existing coverage or reenrollment in previously held coverage for surviving spouse and each surviving child.
    • Interim continuation for survivors of employees reasonably expected to be found eligible, pending final determination.
  • Cost responsibilities:
    • The state is not required to pay premiums but may pay all or part of the cost; if it does, the employing department/agency/board/commission “shall bear the cost” (per the statutory text).
    • If the state does not cover full cost, eligible survivors may continue coverage by paying the unpaid portion.
  • Administrative duties:
    • The state must notify the state employee health plan provider of identities of survivors to be covered.
    • Coverage must be implemented so the state-provided insurance is payor of last resort, consistent with federal law.
  • Exceptions/disqualifications:
    • No continuation if the surviving spouse/child substantially contributed to the employee’s death.
    • No continuation if survivors become ineligible under plan terms for reasons other than the employee’s death (e.g., remarriage, child aging out, or other ineligibility under chapter 509A).

Retroactivity

The act applies retroactively to January 1, 2024.

Who is affected

  • Primary beneficiaries: surviving spouses and surviving children of eligible state employees (state departments, agencies, boards, bureaus, commissions).
  • State agencies and employing entities (may incur premium costs if state pays).
  • State employee group health plan administrators/insurers (must accept continuation and be notified).
  • Potential fiscal impact on state and employing units depending on whether premiums are paid by the state, the employing entity, or the survivors.

Procedural notes

  • Introduced April 17, 2025; amendment H‑1278 adopted April 24, 2025; SF 565 was substituted (per amendment notes) and subsequently listed as withdrawn on April 24 in the action log.
  • Referred to the Taxes committee (initial referral noted on Feb 17, 2025).

Potential impacts to consider

  • Budgetary: increased state or departmental costs if the state or employing entities choose to pay some or all premiums for survivors.
  • Administrative: need for DAS and employing units to establish processes to determine eligibility, notify insurers, and handle interim coverage pending determinations.
  • Coverage continuity: provides clearer access to state health benefits for families after qualifying workplace fatalities, with defined exclusions to limit applicability.

Compiled from official sources — confirm details with the bill’s official record.

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