Relates to managed care health savings accounts.
TITLE OF BILL: An act to amend the insurance law, in relation to a health savings account pilot program and providing for the repeal of such provisions upon the expiration thereof
PURPOSE: This bill would allow the use of high deductible health plan in conjunction with a health reimbursement account (HRA) or a health savings account (HSA), in the context of an HMO product.
SUMMARY OF PROVISIONS: The bill would add new section 1124 to the insurance law in order to establish a pilot program permitting HMOs to offer group high deductible health plans in conjunction with an HRA or an HSA
JUSTIFICATION: High Deductible Health Plans, when used in conjunction with HRAs or HSAs, have become a popular way for employers to continue to provide their employees with health coverage, while maintaining sonic control and predictability in the face of the ever-increasing costs of health care. Employers, especially municipalities, have expressed an increasing demand for these products.
Current law permits insurance companies to offer high deductible health plans, but has been interpreted by the Department of Health and the Department of Financial Services to prohibit such products to be offered by HM0s. HMO products are typically more affordable and more comprehensive than health insurance policies, leading employers to request the ability to pair an HMO product with a high deductible HRA/HSA structure.
This bill would establish a pilot program, limited to municipalities, to allow HMOs to offer group high deductible health plans, in conjunction with an HRA or an HSA. Municipalities participating in the pilot program must be required to contribute at least equal to the deductible required by the plan. Such an approach will allow municipalities to fulfill the obligations of collective bargaining agreements and provide employees with comprehensive health insurance coverage, while maintaining more manageable and predictable costs for such coverage. The cost of health care has repeatedly been identified by municipalities as a critical issue and a significant driver behind property tax increases and other budget issues, The flexibility permitted by this pilot program will provide municipalities with another tool for addressing these problems.
An HMO offering this product would be required to report to the Department of Financial Services on a variety of measures, including consumer satisfaction and access to care.
LEGISLATIVE HISTORY: New bill.
FISCAL IMPLICATIONS: None.
EFFECTIVE DATE: Immediately and shall expire December 31, 2015.
STATE OF NEW YORK ________________________________________________________________________ 6810 IN SENATE March 23, 2012 ___________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 a health savings account pilot program and providing for the repeal of such provisions upon the expiration thereof THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. The insurance law is amended by adding a new section 1124 to read as follows: S 1124. HEALTH SAVINGS ACCOUNT PILOT PROJECT. (A) A HEALTH MAINTENANCE ORGANIZATION CERTIFIED PURSUANT TO ARTICLE FORTY-FOUR OF THE PUBLIC HEALTH LAW MAY OFFER A GROUP HIGH DEDUCTIBLE HEALTH PLAN IN CONJUNCTION WITH A HEALTH REIMBURSEMENT ACCOUNT OR A HEALTH SAVINGS ACCOUNT ESTAB- LISHED PURSUANT TO FEDERAL TAX LAW, WHEN: (1) THE EMPLOYER GROUP PURCHASING THE HIGH DEDUCTIBLE PLAN IS A MUNI- CIPALITY, AND (2) THE EMPLOYER IS OBLIGATED TO CONTRIBUTE, PURSUANT TO A COLLECTIVE BARGAINING AGREEMENT OR OTHER BINDING ARRANGEMENT WITH ITS EMPLOYEES, AN AMOUNT AT LEAST EQUAL TO THE DEDUCTIBLE REQUIRED UNDER THE PLAN ON BEHALF OF EACH ENROLLED EMPLOYEE. (B) A HIGH DEDUCTIBLE HEALTH PLAN OFFERED PURSUANT TO SUBSECTION (A) OF THIS SECTION, WHICH OTHERWISE MEETS THE REQUIREMENTS OF ARTICLE FORTY-FOUR OF THE PUBLIC HEALTH LAW, SHALL BE DEEMED TO PROVIDE COMPRE- HENSIVE HEALTH SERVICES AND SHALL NOT BE DISAPPROVED DUE TO ITS COST SHARE ARRANGEMENT. (C) ANY ORGANIZATION PARTICIPATING IN THE PILOT PROGRAM SHALL FILE A REPORT WITH THE SUPERINTENDENT DETAILING THE IMPACT OF THE PROGRAM, INCLUDING BUT NOT LIMITED TO INFORMATION REGARDING CONSUMER SATISFACTION AND ACCESS TO CARE, NO LATER THAN APRIL FIRST, TWO THOUSAND FOURTEEN. S 2. This act shall take effect immediately and shall expire December 31, 2015 when upon such date the provisions of this act shall be deemed repealed.EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD15062-01-2