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- Referred to insurance
- Referred to insurance
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Sponsor's memo
BILL NUMBER:S2375
Title of bill
An act to amend the insurance law, in relation to coverage requirements of certain health insurance plans
Purpose
The purpose of this legislation is to help individuals and businesses afford the skyrocketing cost of health insurance, by making it easier for them to purchase high-deductible health plans (HDHPs) that are coupled with health savings accounts (HSAs).
Summary of provisions
Sections 3216, 3221, 4304, and 4322 of the insurance law are amended to authorize HMOs and insurers to offer HDHPs coupled with HSAs. Such policies were created under the federal Medicare Prescription Drug, Improvement, and Modernization Act of 2003.
Existing law
Current law prohibits HDHPs and HSAs from being offered by HMOs and in the individual market.
Justification
Individuals and employers are currently struggling with the skyrocketing cost of health insurance in New York. Inevitably, as health care costs increase, so do the number of uninsured in the state. There are already nearly 3 million New Yorkers without health insurance, and we can ill afford any more.
The federal Medicare reform law, signed in December of 2003, established HSAs which must be coupled with a HDHP that has at least a $1100 deductible for individuals and $2200 for family coverage. HDHPs offer regular medical coverage, but cost significantly less than traditional policies because of their higher deductibles. HSAs provide the consumer with maximum choice and control over where their health care dollars are spent, by giving them a means to set aside funds to pay for out-of-pocket medical expenses. Consumers, not their employer or insurance company, should determine how and where to spend their health care dollars. Authorization of such policies in New York would allow a range of coverage options and opportunities combined with funds from an HSA. The consumer would be assured protection from costly health risk and have access to funds to pay for care from any provider that is not covered by the policy.
HDHPs and HSAs are especially attractive to small businesses, as they allow employers to offer medical coverage to their employees at a price they can afford. Allowing more employees and individuals to purchase HDHPs and HSAs will allow for maximum choice and flexibility in designing a plan that meets their needs - both from a health care and a financial point of view.
Legislative history
S.3047 of 2009-10; S.2968 of 2007-08
Fiscal implications
None.
Effective date
January 1, 2012.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.