Health benefit plans for ag nonprofits approved

A bill intended to provide affordable health benefits to Nebraska farmers and ranchers received final approval from lawmakers March 28.

Under LB1313, sponsored by Norfolk Sen. Robert Dover, health benefit plans that are sponsored by certain nonprofit agricultural organizations and provide benefits under a self-funded arrangement administered by a licensed third-party administrator are not subject to insurance regulation.

An organization that sponsors a plan must have been created primarily to promote programs for the development of rural communities and the economic stability of Nebraska farmers, among several other requirements.

Before providing health benefits, an organization is required to file a certification with the state Department of Insurance verifying that the organization meets the bill’s requirements.

The risk assumed by a plan may be reinsured by a company authorized to do business in Nebraska.

LB1313 passed on a vote of 45-0.