At a Feb. 7 public hearing, the House Business Committee voted to send House Bill 38 to the House floor with a do-pass recommendation. Representative Jeff Ehlers, District 21, Meridian, sponsored the bill, which would amend how the Life and Health Insurance Guarantee Association protects policyholders.

Ehlers told the committee HB38 makes four changes. First, it clarifies the association's intent to protect original policyholders rather than entity purchasers such as factoring companies. Second, it authorizes an interest-rate rollback mechanism, allowing the association to reduce excessively high interest guarantees back to industry-standard levels if a failed insurer had offered above-market rates. Third, HB38 would include certain consumer-oriented co-ops formed under the Affordable Care Act; Ehlers said one remaining co-op in Montana is doing business in Idaho and has asked to join the association. Fourth, the bill would remove the statutory cap on association membership fees so the association could increase assessments to cover operating costs.

Bruce Spencer, an attorney and lobbyist representing Mountain Health Co-op, told the committee the co-op supports joining the association. “The co op rights insurance for 11,215 folks here in Idaho and we do feel it's appropriate and important that we join the guarantee association and so we thank the sponsor for bringing the bill and support it,” Spencer said.

Representative Maher moved to send House Bill 38 to the floor with a do-pass recommendation; the committee approved the motion by voice vote and the chair announced the motion carried. No opponents signed up to testify and the committee closed the public hearing after Spencer's remarks.