Exempts individual or group policies of medicare supplemental insurance from certain provisions regarding increase or decrease of premiums

Title of bill

An act to amend the insurance law, in relation to individual or group policies of medicare supplemental insurance

Purpose/summary of provisions

Amends subsection (e) of section 3231 of the insurance law, as added by chapter 501 of the laws of 1992, and section 4308 of the insurance law as added by chapter 504 of the laws of 1995.

Justification

Presently, the Department of Insurance (DOI) is not authorized to convene public hearings to review the merits of requests that are filed by insurance carriers to increase the premiums of health care insurance policies by 10%. As a result, recent dramatic increases in medicare supplemental insurance policies have been approved without the public having the opportunity to express their concerns and ensure such requests are warranted. Such increases have the potential to jeopardize older New Yorkers' access to the vital coverage provided by these policies. This bill would require the DOI to convene public hearings on proposed increases in premiums for medicare supplemental insurance policies.

Since the DOI as indicated that double-digit increases in such policies are becoming an emerging trend, every effort must be made available to ensure that such increases are truly justified. Based on income data, it is obvious many senior citizens, and most especially those living on fixed or modest incomes, will find it difficult, if not impossible, to absorb future increases in the costs associated with obtaining these policies. This is especially problematic for many seniors who subscribe to supplemental insurance as a means to control their health care costs. Also, such requests must be viewed in the wider context of the huge cuts and changes in Medicare that are being considered by Congress. With so much uncertainty about the impact on elderly New Yorkers of these changes it is essential that the DOI convene public hearings to investigate the merit of such increases.

In addition, these public events would ensure attention would be focused on the administrative costs associated with offering these policies and to review the insurer's fraud and detection efforts.

Existing law

1997-98: A.4471/S.2685 - Passed Assembly 1995-97: A.8859/S.6293 - Passed Assembly

Fiscal implications

None.

Effective date

1st day of April after it shall have become law.