Relates to the definition of an independent worker for purposes of the health insurance demonstration program for independent workers

BILL NUMBER:S8358A

Title of bill

An act to amend the insurance law, in relation to the definition of an independent worker

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 Paragraph 3 of subsection (c) of section 1123 of the insurance law, as amended by a chapter of the laws of 2010, amending the insurance law relating to the definition of an independent worker, as proposed in legislative bills numbers S.7772 and A.11131, is amended to not permit 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.

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 on the same date and in the same manner as a chapter of the laws of 2010, amending the insurance law relating to the definition of an independent worker, as proposed in legislative bills numbers S.7772 and A.11131 takes effect.