712 Digital Group - top

Court: Iowa universities can’t be sued for unpaid state fees

News

June 24th, 2015 by Ric Hanson

IOWA CITY, Iowa (AP) – Iowa’s public universities can’t be sued for allegedly refusing to pay their share into a state program that subsidizes insurance for Iowans with health risks. The Iowa Court of Appeals upheld the dismissal Wednesday of a lawsuit that seeks millions in assessments from the University of Iowa, Iowa State University and the University of Northern Iowa.

The Iowa Individual Health Benefit Reinsurance Association contends that the universities, like other agencies that offer self-funded health insurance plans, are legally required to pay those fees. ISU and UNI had paid them for years but all three universities refused to participate when the University of Iowa became self-insured in 2010. The Board of Regents contends the schools aren’t covered by the law.

The court says the program doesn’t have the authority to sue.