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History
- Referred to insurance
- Referred to insurance
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 providing for standardized health insurance contracts for all small employers, individual proprietors and qualifying individuals
Purpose
To permit sole proprietors and small businesses to purchase the new Healthy New York insurance product.
Summary of provisions
Section 1: Creates Insurance Law section 4326-a to permit owners of a sole proprietorship or a small business to purchase both individual and family insurance policies for their employees under the new Healthy New York insurance program. Small businesses that currently offer insurance benefits to their employees would be eligible to purchase the new Healthy New York policy without having to quality under the program as established pursuant to Insurance Law section 4326. Small businesses that purchase Healthy NY pursuant to this new Insurance Law section 4326-a would, however, not be eligible for the stop loss subsidies that are available to persons that purchase Healthy NY pursuant to section 4326.
Read the full memo (637 words)
Section 2: This act shall take effect immediately, provided, however that policies may be issued pursuant to this law on the first day of January next succeeding the date on which it shall have become law.
Existing law
Under current law, only qualifying individuals and small businesses that have not offered health insurance benefits for the past 12 months to their employees are permitted to purchase the new Healthy NY insurance policies.
Justification
Throughout the State, the cost of providing health insurance is continuing to increase at a significant rate. Under HCRA II, insurers and health maintenance organizations (HMOs) were required to offer a new comprehensive standardized health insurance policy that covered all necessary medical and hospital care. This policy costs between 5-7% less than most other types of small group coverage because, while it contains all hospital, surgical, and medical care needed, it does not include all of the other benefits mandated by the insurance law.
The legislative purpose of Healthy NY is to reduce the cost of health insurance for small businesses that currently do not after coverage to their employees by offering a more basic policy and providing for stop loss reinsurance to reduce an insurer's loss exposure. It is estimated that the new Healthy NY policies will be approximately 10-15 percent cheaper than other types of small group coverage. The purpose of this bill is not to affect in any way the current Healthy NY program which is attempting to encourage those that do not have insurance to purchase it. This bill merely allows other small businesses that are currently purchasing small group policies to purchase this new Healthy NY basic benefits package policy at an actuarially sustainable rate without any of the other state subsidies. Even without the stop loss subsidy, it is estimated that policies issued under this act will be approximately 5 - 7 percent cheaper than is currently being offered in the small group market.
The significantly increasing cost of health insurance is a large problem that is affecting New York's business climate and job opportunities for its citizens. This problem may not lend itself to one "large" solution, but can be mitigated by multiple solutions, such as this bill, that can at least curtail future rate increases.
Legislative history
S.2188-A of 2001/2002, S.1374 of 2003/2004, and S.414 of 2005/2006, S.205-B of 2007/2008
Fiscal implications
There are no fiscal implications because no stop loss subsidies or other state monies will be used by those purchasing these new policies. There will be no additional costs to the Insurance Department because all policy forms for Healthy NY have already been approved.
Local fiscal implications
None.
Effective date
This act shall take effect on the first of January next succeeding the date on which it shall have become a law, with provisions.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.