PIERRE, S.D.–A bill that modernizes the South Dakota statute pertaining to Multiple Employer Trusts (Association Health Benefits) has passed the South Dakota Senate on a unanimous vote.
The legislation has had the strong backing of the Credit Union Association of the Dakotas, which said the legislation amends and modernizes the state’s current statutes relating to Association Health Plans, providing a waiver process to open up CUAD Health Benefits Trust to its South Dakota-member credit unions.
As CUToday.info reported here, the CUAD had said since the Affordable Care Act went into effect, employers in the small group health insurance market, generally employers with 50 employees or fewer, have faced rising costs and limited coverage options, with many South Dakota credit unions reporting double-digit premium increases in recent years.
The Credit Union Association of the Dakotas operates a Multiple Employer Welfare Arrangement (MEWA), which the U.S. Department of Labor refers to as “Small Business Health Plans” or “Association Health Plans.
The legislation had lost in a prior session in a narrow defeat in the House, where it is now headed again.
The CUAD is asking its member credit unions to reach out to legislators in the House to advance the bill.
The CUAD Health Benefits Trust cannot be offered to South Dakota credit unions under the current statute, the CUAD said. The CUAD HBT is a $5.5-million health benefits trust, currently has 20 North Dakota credit unions participating, and offers health insurance to over 1,100 credit union employees and their families in North Dakota, according to the association.