Relates to extending the effectiveness of a health insurance demonstration program for early retirees and to the approval process of eligible insurers.
TITLE OF BILL: An act to amend chapter 362 of the laws of 2012, amending the insurance law relating to a health insurance demonstration program for early retirees, in relation to extending the effectiveness of the provisions of such chapter; and to amend the insurance law, in relation to superintendent approval of eligible insurers
The purpose of the bill is to extend the Superintendent of Financial Services' authority to approve a demonstration program to provide group health insurance coverage for former employees of a major New York-based employer.
SUMMARY OF PROVISIONS:
This bill would extend, from December 31, 2013 to December 31, 2014, the Superintendent of Financial Services' authority to approve a health insurance demonstration program under which an eligible insurance company would provide health insurance to former employees of a major New York-based employer.
Today, an increasing number of New Yorkers are losing employer-based health insurance coverage due to the economy. Some of these individuals were promised continued coverage by their employer after retirement.
These former employees lack access to employment-sponsored health insurance coverage, often cannot afford to purchase coverage in the private pay market, and are not eligible for Medicare. Chapter 362 of the Laws of 2012 established a pilot program to meet the needs of this population, at a reasonable price, while still requiring the insurer to meet the solvency requirements, benefit mandates, and other obligations required by state statute and regulation. In addition, providing this program on a "pilot" basis affords the Department of Financial Services the ability to assess the Policy ramifications of this change and the impact on other groups and the community.
PRIOR LEGISLATIVE HISTORY:
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
STATE OF NEW YORK ________________________________________________________________________ 5695--A 2013-2014 Regular Sessions IN SENATE June 5, 2013 ___________Introduced by Sen. ROBACH -- read twice and ordered printed, and when printed to be committed to the Committee on Insurance -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee AN ACT to amend chapter 362 of the laws of 2012, amending the insurance law relating to a health insurance demonstration program for early retirees, in relation to extending the effectiveness of the provisions of such chapter; and to amend the insurance law, in relation to super- intendent approval of eligible insurers THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Section 2 of chapter 362 of the laws of 2012, amending the insurance law relating to a health insurance demonstration program for early retirees, is amended to read as follows: S 2. This act shall take effect immediately and shall expire December 31,
2014 when upon such date the provisions of this act shall be deemed repealed. S 2. Paragraph 3 of subsection (c) of section 1123 of the insurance law, as amended by chapter 453 of the laws of 2010, is amended to read as follows: (3) Any eligible insurer seeking the superintendent's approval under paragraph two of this subsection shall submit a written request to the superintendent [within thirty days of the effective date of this section]PURSUANT TO REGULATIONS PROMULGATED BY THE SUPERINTENDENT. The eligible insurer's application shall: specify the identity and composi- tion of the eligible association, the eligible association's membership rules, and the terms under which the eligible insurer shall provide group health insurance to the eligible association; demonstrate that the eligible insurer and the eligible association meet the requirements set forth in this section; and identify the group health insurance policy forms that the eligible insurer will issue to the eligible association.EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD11347-03-3 S. 5695--A 2
The superintendent shall make a determination on any request within ninety days of receipt of all necessary information. The superintendent shall issue an approval to only one eligible insurer. S 3. This act shall take effect immediately; provided, however, that the amendments to paragraph 3 of subsection (c) of section 1123 of the insurance law made by section two of this act shall not affect the repeal of such section and shall be deemed repealed therewith.