Relating to definition of an independent worker and requirements for an eligible insurer's application

Title of bill

An act to amend the insurance law, in relation to the definition of an independent worker and requirements for an eligible insurer's application

Purpose or general idea of bill

Clarifies the definition of independent worker as it relates to the Freelancers Insurance Company.

Summary of provisions

Section 1 clarifies the definition of "independent worker" in Insurance Law § 1123 to include (1) individuals who work full-time for a single employer on a temporary basis and (2) domestic workers such as nannies.

Section 2 permits an eligible association administering this plan to charge a fixed fee to determine eligibility of applicants to the health program.

Section 3 is the effective date.

Justification

Independent workers such as part-time workers, temps, freelancers and independent contractors have a particularly difficult time finding affordable health insurance because they cannot get coverage on a group basis through their employer. To address this problem, the legislature enacted A.7949-A (Silver)/S.4602A (Breslin) that creates special demonstration authority for the Insurance Department to permit a health insurer owned by a tax-exempt association of independent workers to offer coverage solely to the association's members, without having to serve the employer-based group health insurance market. A health insurer participating in this program is required to follow all insurance law, including benefit mandates, and report to the Insurance Department which will analyze the impact of the program.

An administrator of this health insurance plan is permitted to charge a reasonable fixed fee for assessing an applicants eligibility for coverage. This fee is necessary to ensure that the administrator can process the applications and will only be assessed when an application is submitted.

This bill would amend Insurance Law §1123, where this insurance demonstration program was enacted, to clarify the definition of "independent worker" to include (1) individuals who work full-time for a single employer on a temporary basis and (2) domestic workers such as nannies. This would insure that all independent workers have access to uninterrupted and affordable health insurance.

Prior legislative history

This is a new bill that makes technical corrections to A.7949-A/S.4602-A/Chapter 447 of 2009.

Fiscal implications

None.

Effective date

This act shall take effect immediately; provided, however, that the amendments to section 1123 of the insurance law made by sections one and two of this act shall not affect the repeal of such section and shall be deemed repealed therewith.