High court rules against Iowa regents universities for unpaid assessments

The Iowa Supreme Court has sided against the state's three public universities in a case involving unpaid assessments to a non-profit association that manages health insurance premiums for patients with health risks.

The Iowa Individual Health Benefit Reinsurance Association in 2013 sued the University of Iowa, Iowa State University and University of Northern Iowa on accusations they failed to pay hundreds of thousands of dollars.

The association, created by the Legislature, deals with health policies in a risk pool and requires state agencies that self-insure, among others, to be members.

According to the lawsuit, the three regent institutions are association members - though they deny this - and are required to pay. The association accused the UI of owing $508,030, ISU of owing $198,852, and UNI of owing $78,131, according to court documents.

The regent universities asserted that the non-profit does not have the right to sue and so the district court lacks jurisdiction.

In 2014, the district court granted the universities' motion to dismiss - finding a 2001 amendment to Iowa Code appeared to revoke the authority to sue, which had previously been granted by the Legislature. The appeals court affirmed that dismissal.

But, following its review of the case, the Iowa Supreme Court vacated the appeals court decision and sent the case back - now clearing the way for a lawsuit.

The association 'has the capacity to sue its members in district court for unpaid assessments,” according to the Supreme Court decision.