Local and Municipal Health Care Choice Act of 2017 2017-03-02 Introduced in House Local and Municipal Health Care Choice Act of 2017

This bill amends the Public Health Service Act to authorize a local government in a secondary state to provide group health coverage to its officers, employees, or retirees and their dependents through a local government employee health benefits pool or program authorized under the laws of a primary state unless the municipal league, municipal association, or county association in the secondary state objects. Such pools and programs must do business in the primary state.

Such pools and programs are subject to the primary state's laws, rules, regulations, agreements, and orders pertaining to:

  • group health coverage issued by such a pool or program;
  • the offer, sale, rating, renewal, and issuance of group health coverage to local government officials, employees, or retirees and their dependents;
  • the management, operations, and investment activities of such a pool or program;
  • loss control and claims administration for such a pool or program; or
  • payment of taxes levied on health insurance issuers, brokers, or policyholders.

Such pools and programs are exempt from these policies of the secondary state. These policies do not include policies governing the use of care or cost management techniques. The policies of the primary state must apply to such pools and programs in both the primary state and secondary state.

Secondary states may require such a pool or program to: (1) register with the state, (2) comply with certain court injunctions, or (3) comply with state laws regarding fraud and abuse or unfair claims settlement practices.

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