Statute 44 7 119

44-7,119. Self-funded health benefit plan; not considered insurance; when; certification; required; reinsurance; authorized.(1) A health benefit plan is not insurance and except as provided in this section is not subject to any law regarding insurance if:(a) The health benefit plan provides health benefits under a self-funded arrangement administered by an entity licensed as a third-party administrator under the Third-Party Administrator Act; and(b) The health benefit plan is sponsored by a nonprofit agricultural organization or an affiliate of a nonprofit agricultural organization that:(i) Is domiciled in this state;(ii) Was created primarily to promote programs for the development of rural communities and the economic stability and sustainability of farmers in this state pursuant to its articles of incorporation;(iii) Provides membership opportunities for eligible persons in each county of this state;(iv) Collects annual dues from its members;(v) Holds regular meetings to further the purposes of its members;(vi) Provides its members with representation on its governing board and any committees of such board; and(vii) Contracts with the third-party administrator described in

r the purposes of its members;(vi) Provides its members with representation on its governing board and any committees of such board; and(vii) Contracts with the third-party administrator described in subdivision (a) of this subsection for administration of the health benefit plan.(2) Before providing health benefits under a self-funded plan, an organization shall file a certification with the Department of Insurance verifying that the organization meets the requirements of this section. Such certification shall be filed at a time and in a manner prescribed by the Department of Insurance.(3) The risk assumed by a health benefit plan under health care benefit coverage under this section may be reinsured by a company authorized to do business in this state.(4) Any health benefit plan application for coverage and any contract provided to a member shall prominently state the following:(a) The health benefit plan is not insurance;(b) The health benefit plan is not provided by an insurance company;(c) The health benefit plan is not subject to the laws and rules governing insurance; and(d) The health benefit plan is not subject to the jurisdiction of the Department of Insurance.Source

e company;(c) The health benefit plan is not subject to the laws and rules governing insurance; and(d) The health benefit plan is not subject to the jurisdiction of the Department of Insurance.Source Laws 2024, LB1313, § 1. Effective Date: July 19, 2024 Cross References Third-Party Administrator Act, see sections 44-5801 to 44-5816.