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Who cares
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Sponsors
1 Co-sponsor
History
- Substituted by A7882
- Ordered to third reading cal.1572
- Committee discharged and committed to rules
- Reported and committed to finance
- 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 rates and payments under the child health insurance plan
Vetoed · Sponsor Kevin Cahill
Full text
The text isn't available here yet. Check nysenate.gov.
Sponsor's memo
BILL NUMBER:S5218
Title of bill
An act to amend the insurance law and the public health law, in relation to the child health insurance plan
Purpose
To clarify the prior approval rate setting process for CHP and repeal the automatic subsidy payment reduction for organizations approved to provide CHP that results in a twenty-eight percent difference between the average subsidy payment for all organizations approved to provide CHP on April 1, 2010, and the subsidy amount that the organization would otherwise receive as determined by the Department of Financial Services.
Summary of provisions
Section 1 amends section 1120 of the insurance law to clarify that the Superintendent of the Department of Financial Services has the authority to determine rates for CHP contracts.
Section 2 amends section 2511 of the public health law to sunset the automatic CHP subsidy reduction effective March 31, 2014.
Justification
Premium rates for CHP contracts are currently determined by the Superintendent of Financial Services. This bill confirms and clarifies the Superintendent's rate making authority to ensure regulatory action is not taken to change the rate-making process.
The 2010 New York State Budget imposed a twenty-eight percent reduction to CHP subsidy payment amounts that exceeded the statewide average CHP subsidy payment for the State Fiscal Year beginning April 1, 2010. This statutory provision was intended to be a one-time cut to help fill a Budget deficit for the 2010-11 State Fiscal Year. However, because the drafters of that provision inadvertently failed to include a sunset date, the twenty-eight percent subsidy reduction has been automatically reoccurring every year, erroneously reducing all justifiable subsidy increases approved by the Department of Financial Services (DFS) by amounts above the 201 statewide average premiums from 2010. This legislation would correct this harmful drafting error to allow reasonable increases that are approved by DFS to be received without being reduced by a statutory provision that was never intended to continue beyond 2010
Legislative history
This is a new bill
Fiscal implications
To be determined.
Effective date
This act shall take effect immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.