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- Referred to insurance
- Referred to insurance
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Relates to the coverage for a dependent child; defines "dependent child" for purposes of certain health insurance coverage
In Assembly Committee · Insurance · Sponsor Joseph Morelle
Full text
The text isn't available here yet. Check nysenate.gov.
Sponsor's memo
Title of bill
An act to amend the insurance law, in relation to the coverage of a dependent child
Purpose
This bill would expand access to health insurance by allowing unmarried children through age 29, regardless of financial dependence, to be covered under a parent's group health insurance policy.
Summary of provisions
Section 1 of the bill would amend Insurance Law § 3221 to require commercial insurers that provide group health insurance coverage to extend an option to continue coverage to unmarried children who have "aged off" of their parents' group health insurance policies. The "dependent children" may continue to be covered under their parents' group policy through age 29 as long as they do not have group insurance coverage through another group insurance policy and are not eligible for Medicare. Such children are not required to be financially dependent on their parents to elect this benefit.
Read the full memo (804 words)
Section 1 of the bill would also allow an employee, group member or dependent child to elect to purchase group health insurance coverage: (1) within 60 days following the date coverage would otherwise terminate due to age, under the terms of the parent's policy; (2) within 60 days after meeting the definition of "dependent child;" or (3) during an annual 30-day open enrollment period. Dependent children whose coverage terminated prior to the effective date of the bill would have a period of 12 months from the effective date to elect coverage.
Section 1 of the bill would also provide that employers shall not be required to pay the premiums for dependent children electing this continuation option. An insurer must establish a distinct premium rate for this coverage, which would be discounted to reflect the favorable claims experience of the dependent children who qualify.
Section 1 of the bill would further require an insurer to submit reports as the Superintendent of Insurance ("Superintendent") may request, in a form and manner to be prescribed by the Superintendent.
Section 2 of the bill would amend Insurance Law § 4304 to require not-for-profit corporations and health maintenance organizations ("HMOs") that offer group remittance contracts to include unmarried dependent children through age 29 under the same terms and conditions as commercial insurers.
Section 3 of the bill would amend Insurance Law § 4305 to require not-for-profit corporations and HMOs that offer group contracts to include unmarried dependent children through age 29, also under the same terms and conditions as commercial insurers.
Section 4 of the bill would provide that the bill take effect on July 1, 2009 and apply to contracts issued, renewed, modified, altered or amended on or after that date.
Existing law
Current law pertaining to group contracts does not delineate a minimum age to which an insurer must extend dependent coverage in a family contract. With regard to group remittance contracts, Insurance Law § 4304(d)(1) limits coverage to children under the age of 25, at the option of the insurer. If the child is incapable of self-sustaining employment due to disability, the age limitations do not apply and the child would be eligible to remain covered under the contract.
Legislative history
This is a new bill.
Statement of support
Uninsured young adults between the age of 19 through 29 represent 31 percent of New York State's total uninsured population. These individuals -- sometimes referred to as "young invincibles" -- often lose their health coverage at the age of 19, or upon graduation from high school or college. Young adults are often employed in entry-level jobs and may work for employers that do not provide (or contribute to the cost of) health insurance. As such, young adults are often unable to afford individual direct payment insurance and frequently choose to go uninsured.
This bill would expand access to health insurance for young adults by requiring commercial insurers, non-profit corporations and HMOs to offer an option to continue coverage for unmarried young adults through age 29, regardless of financial dependence, under a parent's group health insurance policy. The bill requires insurers to establish a "distinct premium" for this coverage, reflecting the lower morbidity of the young adult population. As a result, such coverage would be less expensive than Consolidated Omnibus Budget Reconciliation Act ("COBRA") or state continuation coverage, and would not impact the risk of the underlying employee group. The bill would not require employers to contribute to the cost of coverage.
In 2006, New Jersey enacted similar legislation which resulted in premium rates for young adults that were discounted by 20 to 40 percent when compared to standard COBRA continuation premiums.
Budget implications
This bill will not have a fiscal impact to the State.
Effective date
This bill takes effect July 1, 2009 and will apply to contracts issued, renewed, modified, altered and amended on or after such date.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.