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History
- Signed chap.12
- Delivered to governor
- Returned to senate
- Passed assembly
- Ordered to third reading cal.409
- Substituted for A9248
- Referred to insurance
- Delivered to assembly
- Passed senateVote 59–0
- Ordered to third reading cal.146
- Referred to rules
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 catastrophic or reinsurance coverage issued to certain small groups; repealer
Assembly Floor Calendar · Sponsor Rebecca Seawright
Full text
The text isn't available here yet. Check nysenate.gov.
Sponsor's memo
Title of bill
An act to amend the insurance law, in relation to catastrophic or reinsurance coverage issued to certain small groups; to amend a chapter of the laws of 2015 amending the insurance law relating to catastrophic or reinsurance coverage issued to certain small groups, as proposed in legislative bills numbers S. 6004 and A. 8300, in relation to the effectiveness of such chapter; and in relation to directing the superintendent of financial services to contract with an independent entity to conduct an assessment regarding the impact of the prohibition on the sale of stop loss, catastrophic and reinsurance coverage to the small group market; to amend a chapter of the laws of 2015 amending the insurance law relating to catastrophic or reinsurance coverage issued to certain small groups, as proposed in legislative bills numbers S.5928-A and A.8134-A, in relation to the effectiveness of such chapter; and to repeal section 4 of a chapter of the laws of 2015 amending the insurance law relating to catastrophic or reinsurance coverage issued to certain small groups, as proposed in legislative bills numbers S. 6004 and A. 8300, relating thereto
Purpose
The purpose of this bill is to amend chapters of the laws of 2015 related to the sale of stop-loss, catastrophic and reinsurance coverage to certain employers within the small-group health insurance market.
Summary of provisions
This bill would provide that stop-loss, catastrophic and reinsurance coverage may only be sold in the small group health market to groups with 51 to 100 workers which already had policies as of January 1st, 2015. The bill would sunset the exemption for these groups in three years. Additionally, the bill would require the Department of Financial Services to contract with an independent entity to study the effects of the sale of stop-loss, catastrophic and reinsurance coverage on the small group market. Stop-loss carriers are responsible for the costs of the contract entered with the independent entity to cover the report. The report is due to the Legislature on or before March 1, 2018.
Read the full memo (629 words)
Justification
The ACA expanded the "small group" market from 2-50 to 2-100 employees or members effective January 1st, 2016 in order to place downward pressure on premiums through the law of large numbers by including larger firms within the group. Expanding the small group up to 100 members or employees required the sale of community-rated policies-and prohibited the sale of stop loss, reinsurance or catastrophic coverages-to groups with between 51-100 members or employees for the first time. This included both private sector firms and members of municipal cooperatives and schools which are members of municipal cooperative associations pursuant to article five-G of the general municipal law.
Chapters 588 and 589 of 2015 grandfathered 51-100 member groups which had self-insurance with stop-loss coverage as of June 1st, 2015, as long as they kept their coverage in effect.
This bill amends the Chapters to provide self-insured groups the flexibility to select a different stop loss carrier and/or plan once in 2016 upon replacement of such coverage. Thereafter, groups may continue to self-insure through renewal with the same stop loss carrier. This bill also extends the sunset to three years. LEGISLATIVE HISTORY :
New Bill.
Fiscal implications
Undetermined.
Effective date
Immediately, provided, however, that sections one, two, three, four, five and seven of this act shall be deemed to have been in full force and effect on the same date and in the same manner as chapter 588 of the laws of 2015 took effect; provided further that the amendments to sections 3231 and 4317 of the insurance law made by sections one, two, three and four of this act shall not affect the expiration of such provisions and shall be deemed expired therewith.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.