Relates to changes in health insurance contracts or plans for retired officers, employees, and their families

BILL NUMBER:S6791

Title of bill

An act to amend the general municipal law, in relation to providing notice of health insurance contracts for retired officers, employees, and their families

Purpose

To provide notice to retirees affected by proposed changes in a health insurance plan before the changes are adopted by a public corporation.

Summary of provisions

This bill would add a new subdivision 2-a to General Municipal Law Section 92 to require that a public corporation forward a notice of a change in a health insurance plan to affected retired employees and publicly post the notice 90 days before adopting the change. The notice must state: (1) the general terms of the proposed contract or amendment; (2) the location where the full text of the proposed contract or amendment can be obtained; and (3) any relevant financial information, including the cost of the proposed contract or amended plan to the public corporation and to the retired employees and their families. The notice must be posted in a public place at the public corporation's offices, on any website it publishes and in any other place within the corporation's jurisdiction where such notices are published generally.

Existing law

There are no statutory provisions requiring that retired employees be notified of a proposed change in their health insurance plan.

Justification

With the cost of health insurance rapidly rising, it is essential that retired employees and their families who are financially affected be given advanced notice before a governmental unit changes their health benefits. In addition, such disclosure would enable the retirees to have input to be sure that the proposed health insurance plan provisions are cost effective. This is especially true for retired public employees who have no collective bargaining rights and are often confronted after-the-fact with higher premium charges or co-pay amounts without concomitant increases in their pensions.

Legislative history

None.

Fiscal implications

There may be minor costs associated with the distribution of the notice but cost savings from retired employees' offering cost effective alternatives to the proposed changes.

Effective date

Immediately upon enactment and shall apply to health insurance contracts or plans entered into, renewed, modified, or amended on or after such effective date.