Bill > LB293

This bill modifies the Professional Employer Organization (PEO) Registration Act, primarily focusing on health benefit plans offered by professional employer organizations to their covered employees. The bill establishes detailed requirements for self-funded health benefit plans, mandating that such plans must be fully insured or meet specific criteria, including: utilizing a licensed third-party administrator, holding plan assets in a trust account, maintaining sound reserves using accepted actuarial standards, providing written notice to employees about the plan's funding status, and filing quarterly reports with the department. The bill requires these self-funded plans to include a financial statement, an actuary's statement confirming sufficient rates and reserves, proof of stop-loss insurance, and a compliance certificate. If a PEO fails to comply with these health benefit plan requirements, the department can hold a compliance hearing and potentially issue an order requiring compliance, with the ultimate consequence of revoking the organization's registration if they do not meet the standards. The bill also clarifies that PEOs and their clients are considered employers for purposes of employee benefit plans and adjusts how employee welfare benefit plans are classified under state law.

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https://nebraskalegislature.gov/bills/view_bill.php?DocumentID=58878