Establishes the New York State Health Benefit exchange

2 Co-sponsors

• Kemp Hannon
• William J. Larkin Jr.

BILL NUMBER:S5652

Title of bill

An act to amend the public authorities law, in relation to establishing the New York Health Benefit exchange in accordance with the federal Patient Protection and Affordable Care Act, as amended by the federal Health Care and Education Reconciliation Act of 2010

Purpose

To establish the New York Health Benefit Exchange as required by the federal health care reform law (Patient Protection and Affordable Care Act)

Summary of provisions

Section 1 of the bill adds a new Title 6-A to Article 9 of the public authorities law creating the New York Health Benefit Exchange to do the following:

Section 2911 provides the short title.

Section 2912 provides definitions.

Section 2913 establishes the New York State Health Benefit Exchange as a new public authority. The Exchange will operate under the control of an 11 member board of directors.

Section 2914 sets forth the powers of the Exchange.

Section 2915 addresses issues relating to procurement.

Section 2916 requires the Exchange to study various policy issues relating to the Exchange and issue a report to the Legislature by December 31, 2011.

Section 2917 allows the Exchange to set up accounts and provides that no general fund monies will be used to finance the Exchange without a subsequent appropriation.

Section 2918 provides that no director or employee of the Exchange shall be subject to personal liability for carrying out the powers of the Exchange.

Section 2919 establishes Regional Advisory Committees across the state to provide expertise and recommendations to the Board.

Section 2920 relates to officers and employees of the Exchange.

Section 2921 provides that the Exchange shall not supersede the authority of either the superintendent of the Department of Financial Services or the Commissioner of Health.

Sections 2 and 3 provides a severability clause and effective date. Should the federal act be declared unconstitutional or is repealed by congress, then this act shall be null and void.

Justification

This bill establishes the New York State Health Benefit Exchange and begins the initial phase of addressing the requirements under the federal Patient Protection and Affordable Care Act enacted last year. Under the federal law, states are encouraged to set up and have operational health insurance exchanges by 2014. If states do not fulfill this mandate, the federal government will assume that responsibility and establish one for us This bill establishes a state-operated exchange.

Exchanges are intended to assist small employers, individuals and families in determining if they are eligible for subsidized health insurance programs and to select a health insurance product that best meets their needs. By establishing an independent public authority with legislative and executive appointments, as well as regional advisory committees, the Exchange will be able to obtain input and develop recommendations on the policy issues that must be addressed. The bill allows the new Board the time to review and evaluate critical aspects of the Exchange and its role and functions within the health insurance arena. This allows for a transparent process and careful consideration of policy choices.

New York State already has strong regulatory oversight of health plans. The current system protects policyholders and promotes a robust health insurance market. This bill acknowledges the existing regulatory and statutory underpinnings in both the health and insurance areas, while recognizing the importance of moving forward to establish an Exchange in order to access federal funding.

Legislative history

New bill.

Fiscal implications

None to the State, as the Exchange is contingent upon federal funding.

Effective date

Immediately.