Relates to funding for student health plans.
TITLE OF BILL: An act to amend the insurance law, in relation to funding for student health plans
This legislation makes technical amendments to a statute authorizing certain universities to self-insure for the purposes of providing health insurance to currently enrolled students. These amendments will reduce the amount of time a university has to deposit required funds in case of insolvency. It also provides that this fund be accounted for separate and apart from all other assets, liabilities, income and expenses.
SUMMARY OF PROVISIONS:
This bill makes technical amendments to chapter 246 of the laws of 2012 (S.7314- A/A.10577-A) to clarify the requirements of a university that establishes a self-insured student health plan. These amendments specify that funds to pay these claims shall be accounted for separately rather than be held in separate accounts. Additionally, a university will have five days to comply with the superintendent's order to deposit additional funds for this purpose instead of thirty days.
Sufficient funds to pay claims must be available in case of a bankruptcy. This legislation clarifies these requirements.
STATE OF NEW YORK ________________________________________________________________________ 7317 IN SENATE May 12, 2014 ___________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 funding for student health plans THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Subsection (m) of section 1124 of the insurance law, as added by chapter 246 of the laws of 2012, is amended to read as follows: (m)(1)
[No part of any]ANY funds of the institution, as they pertain to the student health plan, shall be [subject to the claims of general creditors of the institution]ACCOUNTED FOR SEPARATE AND APART FROM ALL OTHER ASSETS, LIABILITIES, INCOME AND EXPENSES OF THE INSTITUTION until all plan benefits and other plan obligations have been satisfied. Until such time, the institution shall continue to maintain and fund the reserve funds required to be established under subsection (h) of this section. If at any time the superintendent determines that additional funds shall be deposited in the reserve funds, then the institution shall make the deposit within [thirty]FIVE days of the superintendent's determination. (2) If, after twenty-four months, or such longer period as deemed necessary by the superintendent, all plan benefits and other plan obli- gations have been satisfied, the institution, upon approval by the superintendent, shall no longer be required to maintain assets within the plan's reserve funds within [restricted]accounts within the insti- tution's general accounting ledger system. S 2. This act shall take effect immediately.EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD15047-01-4