On Tuesday, Ohio Governor Mike DeWine signed Senate Bill 100 into law, carving out a new exemption for certain nonprofit agricultural organizations that offer healthcare benefit plans.
Sponsored by State Senator Susan Manchester (R-Lakeview), the bill exempts nonprofit agricultural membership organizations from state insurance regulations, provided they meet specific criteria.
Senator Manchester comments:
Under the new law, these organizations must have been incorporated in Ohio on or before December 31, 1919, for the purpose of promoting farmers’ interests and must provide healthcare benefit coverage exclusively to their members and their families.
Supporters of the bill say it protects long-standing farm groups, such as the Ohio Farm Bureau, from being regulated as traditional insurance providers.
To qualify for the exemption, any materials used to market the coverage must clearly state that the plans are not insurance and are not subject to state insurance laws. Organizations are also prohibited from describing the benefits as insurance in any marketing materials.
While the healthcare coverage offered by these groups is not considered insurance under Ohio law, the risks can still be assumed or reinsured by authorized insurance companies.
Senate Bill 100 officially enacts Section 3901.96 of the Ohio Revised Code.
The exact wording of the bill reads:
To enact section 3901.96 of the Revised Code to exclude nonprofit agricultural membership organizations from insurance regulations. Be it enacted by the General Assembly of the State of Ohio:
SECTION 1. That section 3901.96 of the Revised Code be enacted to read as follows:
Sec. 3901.96. (A) As used in this section:
(1) “Nonprofit agricultural membership organization” means an organization or an affiliate of an organization that meets both of the following:
(a) The organization was incorporated in this state on or before December 31, 1919, for the purpose of promoting the interests of farmers in this state.
(b) The organization provides healthcare benefit coverage exclusively to members of the organization and the members’ families pursuant to contracts between the members and the organization or its affiliate.
(2) “Material marketing” means the official written materials and verbal communications provided to, or directed at, prospective members and members’ families for advertising or marketing purposes.
(B) Healthcare benefit coverage provided by a nonprofit agricultural membership organization that meets all of the following is not subject to Title XXXIX or Chapter 1739., 1751. or 1753. of the Revised Code and shall not be considered insurance under any law of this state:
(1) The healthcare benefit coverage is provided by a nonprofit agricultural membership organization to the organization’s members;
(2) The application for healthcare benefit coverage and any contract provided to a member is in writing;
(3) The application for healthcare benefit coverage and any contract provided to a member prominently states both of the following:
(a) The healthcare benefit coverage is not insurance.(b) The healthcare benefit coverage is not subject to the laws and rules of this state governing insurance.
(C) A nonprofit agricultural membership organization shall not represent that healthcare benefit coverage provided by the organization is insurance in any material marketing.
(D) The risks arising out of healthcare benefit coverage provided by a nonprofit agricultural membership organization may be assumed or reinsured by a company authorized to conduct the business of insurance in this state
DeWine also signed the following:
- Senate Bill 6, sponsored by State Senator Kristina Roegner (R-Hudson), makes changes to the law relating to building inspections.
- Senate Bill 39, sponsored by State Senators Terry Johnson (R-Portsmouth) and Hearcel Craig (D-Columbus), regards the creation and display of a poster containing information on benefits and services for veterans.
- Senate Bill 27, sponsored by State Senator Terry Johnson (R-Portsmouth), designates March 20th as “Ameloblastoma Awareness Day.”
- Senate Bill 114, sponsored by State Senator Thomas Patton (R-Strongsville), to prohibit law enforcement agencies from using quotas for arrests and citations.
- Senate Bill 138, sponsored by State Senator Terry Johnson (R-Portsmouth), modifies various laws regarding boards of alcohol, drug addiction, and mental health services and imposes penalties for not registering recovery housing residences.
- Senate Bill 147, sponsored by State Senator Bill Reineke (R-Tiffin), makes changes to the laws governing the transfer and disposal of solid waste and construction and demolition debris and to provide for new procedures governing a county’s withdrawal from a joint solid waste management district.
- House Bill 50, sponsored by State Representative Angela King (R-Celina), designates a portion of State Route 47 in Darke County as the “PFC John Wayne Richard Memorial Highway.”
- House Bill 64, sponsored by State Representatives David Thomas (R-Jefferson) and Kellie Deeter (R-Norwalk), to allow Ohio residents who are 65 and up, instead of 66 and up, to qualify for discounted hunting and fishing licenses and permits.
- House Bill 65, sponsored by State Representatives Roy Klopfenstein (R-Haviland) and Bob Peterson (R-Sabina), to make specified day and week designations relating to agriculture and name this act the Agriculture Appreciation Act.
- House Bill 81, sponsored by State Representative Brian Stewart (R-Ashville), to make appropriations for the Bureau of Workers’ Compensation for the biennium beginning July 1, 2025, and ending June 30, 2027, to provide authorization and conditions for the operation of the Bureau’s programs, and to make changes to the Workers’ Compensation Law.
