S5561-2011 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

S5561-2011 Meetings

S5561-2011 Calendars

S5561-2011 Votes

S5561-2011 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.

S5561-2011 Text

 S T A T E   O F   N E W   Y O R K
 
 
                                         5561
 2011-2012 Regular Sessions
 I N  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.
 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
 [ ] is old law to be omitted.
 LBD11928-01-1

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