Relates to a health insurance demonstration program for early retirees

1 Co-sponsor

• Michael H. Ranzenhofer

BILL NUMBER:S6740B

Title of bill

An act to amend the insurance law, in relation to a health insurance demonstration program for early retirees; and providing for the repeal of such provisions upon expiration thereof

Purpose or general idea of bill

The purpose of the bill is to authorize the Superintendent of Financial Services to approve a demonstration program to provide group health insurance coverage for former employees of a major New York-based employer.

Summary of specific provisions

This bill authorizes a demonstration which would allow the Superinten- dent of Financial Services to approve an eligible insurance company to provide health insurance to former employees of a major New York-based employer. The eligible insurance company would submit periodic reports to the Superintendent to enable the Superintendent to evaluate the effectiveness of the demonstration program.

Justification

Today, an increasing number of New Yorkers are losing employer-based health insurance coverage due to the economy. Some of these individuals were promised continued coverage by their employer after retirement. These former employees lack access to employment-sponsored health insur- ance coverage and often cannot afford to purchase coverage in the private pay market.

This demonstration program seeks to create a new model of health insur- ance that would meet the special needs of this population, at a reason- able price, while still meeting the solvency requirements, benefit mandates, and other obligations required by state statute and regu- lation. Providing this program on a "pilot" basis affords the Department of Financial Services the ability to assess the policy ramifications of this change and the impact on other groups and the community.

Legislative history

New Bill.

Fiscal implications

None.

Effective date

Immediately, but shall expire and be deemed repealed on December 31, 2013.