Relates to blanket health and accident policies issued to a college, school or other institution of learning

2 Co-sponsors

• Liz Krueger
• John L. Sampson

Title of bill

An act to amend the insurance law, in relation to blanket accident and health policies issued to a college, school or other institution of learning

Purpose or general idea of bill

To provide the certificate holder or student under blanket health and accident policies issued to a school, college or other accredited institution of higher learning with written notice of the date coverage terminates under the policy and a description of coverage options which may be available following the termination.

Summary of specific provisions

Section one of the bill amends subparagraph (c) of paragraph 3 of subsection (a) of section 4237 of the Insurance Law to require the insurer, issuing a blanket health and accident policy to a school, college or other accredited institution of higher learning, to provide written notice to a certificate holder or student covered under such policy of the date coverage terminates, and a description of coverage options available following the termination. The notice is required to be provided at the commencement of coverage and not less than forty-five days prior to the termination of coverage.

Section two of the bill provides an immediate effective date for the legislation.

Justification

Under the current law, an insurer offering blanket accident and health policies to schools or universities has no obligation to provide a student covered under the policy with written notice of the termination. As a result, some students are unaware of the termination of their coverage, and fail to exercise continuation options which may be available to them or make other arrangements before lapses in coverage could lead to new preexisting condition waiting periods. This bill would provide both notification of termination and a description of other coverage options. Similar information is provided to workers or dependents of workers who lose eligibility under employer-sponsored plans. Providing this information will allow students -- particularly graduating college students who may also lose eligibility under their family's plans -- to take advantage of options available to them and plan ways to meet their future health care needs.

Legislative history

2007/2008 - S.727A Remained in the Senate Committee on Insurance 2005/2006 - S.1377 Remained in the Senate Committee on Insurance 2003/2004 - S.5450-A Remained in Senate Committee on Insurance/A.8754A Passed Assembly

Fiscal implications

None.

Effective date

This act shall take effect September 1, 2009.