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Who cares
Headline styles
Sponsors
1 Co-sponsor
History
- Substituted by A8133
- Advanced to third reading
- 2nd report cal.
- 1st report cal.1025
- 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 health insurance coverage for sole proprietors
Signed by Governor · Sponsor George Latimer
Full text
The text isn't available here yet. Check nysenate.gov.
Sponsor's memo
BILL NUMBER:S5561
Title of bill
An act to amend the insurance law, in relation to health insurance coverage for sole proprietors
Purpose
This bill amends the Insurance Law to extend to December 31, 2014 the maximum premium rate differential of 115 percent of the rate established for group coverage for individual proprietors who purchase group health insurance through associations.
Summary of provisions
Section 1 - amends paragraph 2 of subsection (i) of section 3231 of the insurance law to extend the period for individual proprietors to be classified in their own community rating category from December 31, 2011 to December 31, 2014. The premium rate established for individual proprietors shall not be greater than 115 percent of the rate established for the same coverage issued to groups.
Section 2 - amends paragraph 2 of subsection (f) of section 4317 of the insurance law to extend the period for individual proprietors to be classified in their own community rating category from December 31, 2011 to December 31, 2014. The premium rate established for individual proprietors shall not be greater than 115 percent of the rate established for the same coverage issued to groups.
Section 3 - provides the effective date.
Existing law
This law was previously extended by chapter 517 of the laws of 2008.
Justification
Insurers that issue coverage to an association group must issue the same coverage to both groups and individual proprietors that purchase coverage through the association group. Insurers are permitted to charge those groups and individual proprietors different premium rates, but the differential between the rates is limited to 115 percent. This cap on the differential is necessary to ensure that our individual proprietors are afforded premium rates that are similar to those charged for health insurance policies that are available to other groups. This bill will help ensure that individual proprietors will continue to have access to the same coverage as other small businesses when purchased through association groups. Without this legislation, insurers could charge health insurance rates for individual proprietors beyond the current 115 percent rate differential. If the increase in premiums is beyond what can be absorbed, many small businesses will inevitably be forced to drop health insurance coverage, which would be detrimental to the State.
Legislative history
New bill.
Fiscal implications
None.
Effective date
Immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.