Bill S5561-2011

Relates to health insurance coverage for sole proprietors

Relates to health insurance coverage for sole proprietors.

Details

Actions

  • Jun 14, 2011: SUBSTITUTED BY A8133
  • Jun 13, 2011: ADVANCED TO THIRD READING
  • Jun 7, 2011: 2ND REPORT CAL.
  • Jun 6, 2011: 1ST REPORT CAL.1025
  • Jun 2, 2011: REFERRED TO INSURANCE

Meetings

Calendars

Votes

VOTE: COMMITTEE VOTE: - Insurance - Jun 6, 2011
Ayes (15): Seward, Flanagan, Golden, Grisanti, Lanza, Larkin, LaValle, Martins, Saland, Young, Breslin, Diaz, Espaillat, Kennedy, Smith
Ayes W/R (2): Kruger, Peralta
Absent (1): Parker

Memo

BILL NUMBER:S5561

TITLE OF BILL: An act to amend the insurance law, in relation to health insurance coverage for sole proprietors

PURPOSE: This bill amends the Insurance Law to extend to December 31, 2014 the maximum premium rate differential of 115 percent of the rate established for group coverage for individual proprietors who purchase group health insurance through associations.

SUMMARY OF PROVISIONS: Section 1 - amends paragraph 2 of subsection (i) of section 3231 of the insurance law to extend the period for individual proprietors to be classified in their own community rating category from December 31, 2011 to December 31, 2014. The premium rate established for individual proprietors shall not be greater than 115 percent of the rate established for the same coverage issued to groups.

Section 2 - amends paragraph 2 of subsection (f) of section 4317 of the insurance law to extend the period for individual proprietors to be classified in their own community rating category from December 31, 2011 to December 31, 2014. The premium rate established for individual proprietors shall not be greater than 115 percent of the rate established for the same coverage issued to groups.

Section 3 - provides the effective date.

EXISTING LAW: This law was previously extended by chapter 517 of the laws of 2008.

JUSTIFICATION: Insurers that issue coverage to an association group must issue the same coverage to both groups and individual proprietors that purchase coverage through the association group. Insurers are permitted to charge those groups and individual proprietors different premium rates, but the differential between the rates is limited to 115 percent. This cap on the differential is necessary to ensure that our individual proprietors are afforded premium rates that are similar to those charged for health insurance policies that are available to other groups. This bill will help ensure that individual proprietors will continue to have access to the same coverage as other small businesses when purchased through association groups. Without this legislation, insurers could charge health insurance rates for individual proprietors beyond the current 115 percent rate differential. If the increase in premiums is beyond what can be absorbed, many small businesses will inevitably be forced to drop health insurance coverage, which would be detrimental to the State.

LEGISLATIVE HISTORY: New bill.

FISCAL IMPLICATIONS: None.

EFFECTIVE DATE: Immediately.


Text

STATE OF NEW YORK ________________________________________________________________________ 5561 2011-2012 Regular Sessions IN SENATE June 2, 2011 ___________
Introduced by Sen. SEWARD -- read twice and ordered printed, and when printed to be committed to the Committee on Insurance AN ACT to amend the insurance law, in relation to health insurance coverage for sole proprietors THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Paragraph 2 of subsection (i) of section 3231 of the insur- ance law, as amended by chapter 517 of the laws of 2008, is amended to read as follows: (2) For coverage purchased pursuant to this subsection, individual proprietors shall be classified in their own community rating category, provided however, up to and including December thirty-first, two thou- sand [eleven] FOURTEEN, the premium rate established for individual proprietors purchased pursuant to paragraph one of this subsection shall not be greater than one hundred fifteen percent of the rate established for the same coverage issued to groups. S 2. Paragraph 2 of subsection (f) of section 4317 of the insurance law, as amended by chapter 517 of the laws of 2008, is amended to read as follows: (2) For coverage purchased pursuant to this subsection, individual proprietors shall be classified in their own community rating category, provided however, up to and including December thirty-first, two thou- sand [eleven] FOURTEEN, the premium rate established for individual proprietors purchased pursuant to paragraph one of this subsection shall not be greater than one hundred fifteen percent of the rate established for the same coverage issued to groups. S 3. This act shall take effect immediately.

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