To enact section 3901.96 of the Revised Code to exclude nonprofit agricultural membership organizations from insurance regulations.
Summary
HB99 would create a new section of the Ohio Revised Code defining a “nonprofit agricultural membership organization” as a long-standing Ohio nonprofit or affiliate, incorporated on or before December 31, 1919, that was formed to promote farmers’ interests and that provides healthcare benefit coverage only to its members and their families through member contracts. The bill is narrowly drafted to apply to organizations meeting both criteria, which appears intended to capture a specific legacy farm organization structure rather than the broader insurance market.
The bill would exempt such organizations from Ohio’s insurance laws in Title 39 and from Chapter 1751, and it would remove them from the jurisdiction of the Superintendent of Insurance. It also states that healthcare benefit coverage offered by these organizations is not “insurance” and not a health benefit contract under Ohio law. At the same time, the bill allows the risks associated with that coverage to be assumed or reinsured by an insurer authorized in Ohio, preserving a pathway for financial backing without subjecting the organization itself to standard insurance regulation.
Impact
If enacted, HB99 would carve out a statutory exemption from state insurance regulation for a very specific class of nonprofit agricultural membership organizations, likely affecting only a small number of entities, if any. It would limit the application of Ohio insurance statutes and health benefit contract rules to those organizations, reduce oversight by the Department of Insurance, and potentially alter how their member healthcare coverage is treated under state law. The bill would also create a legal distinction between these organizations’ coverage and regulated insurance products, while still permitting reinsurance arrangements with licensed insurers.
Sentiment
Based on the bill’s introduction and sponsorship pattern, the overall sentiment appears supportive among the bill’s backers, with a broad set of cosponsors suggesting interest in protecting or preserving a longstanding agricultural benefit model. Because there are no committee transcripts or recorded votes in the provided materials, there is no direct evidence of opposition or debate in the available record. The bill’s narrow drafting and targeted exemption suggest it is being advanced as a specialized policy fix rather than a broad insurance overhaul.
Contention
The main point of potential contention is the bill’s decision to exempt a defined organization from insurance regulation by declaring its healthcare benefit coverage not to be insurance under state law. Critics could view that as creating a regulatory carve-out that reduces consumer protections, oversight, and consistency in the insurance market. Supporters would likely argue that the exemption is justified because the organizations are nonprofit, member-based, historically rooted in Ohio agriculture, and operate through direct member relationships rather than as conventional insurers. Another possible issue is the bill’s narrow historical cutoff date, which could be seen as favoring a specific legacy entity or entities.
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