What's happening
This bill changes rules on redeploying excess reserves for certain nonprofit managed care organizations, narrowing exemptions based on reserve levels.
Why it matters
Narrows which nonprofit managed care organizations can avoid having their excess reserves redeployed by the state. Previously, organizations involved in certain asset transactions during a specific time frame were exempt; now, only those at or below a defined "presumptive reserve ceiling" are excluded.
Possible financial impact on organizations with higher reserves. Nonprofits that maintain reserves above the new ceiling may be required to relinquish more funds, potentially affecting their financial flexibility or capacity to invest in future services.
Focuses state oversight on organizations with significant excess reserves. The amendment shifts the exemption criteria from transactional history to reserve levels, meaning the state can more directly target organizations with larger financial cushions for redeployment of funds.
Could influence how nonprofits manage their reserves. Organizations may change their reserve strategies to stay below the threshold and avoid state intervention, impacting their risk management and long-term planning.
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Who cares
Headline styles
Limit HMO Cash Reserves
Plain English, a few words. Used as the page title.
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History
- Referred to health
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
10925
IN ASSEMBLY
May 29, 2018
Introduced by M. of A. GOTTFRIED -- read once and referred to the Committee on Health
AN ACT to amend subpart B of part FFF of chapter 59 of the laws of 2018 amending the public health law relating to authorizing the commissioner of health to redeploy excess reserves of certain not-for-profit managed care organizations, in relation to the effectiveness thereof
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Section 2 of subpart B of part FFF of chapter 59 of the laws of 2018 amending the public health law relating to authorizing the commissioner of health to redeploy excess reserves of certain not-forprofit managed care organizations is amended to read as follows:
§ 2. This act shall take effect August 1, 2018 and shall expire and be deemed repealed August 1, 2023[, but, shall not apply to any entity or any subsidiary or affiliate of such entity that disposes of all or a material portion of its assets pursuant to a transaction that: (1) was the subject of a request for regulatory approval first made to the commissioner of health between January 1, 2017, and December 31, 2017; and (2) receives regulatory approval from the commissioner of health prior to July 31, 2018]; provided that the provisions of section 4416 of the public health law, as added by section one of this act, shall not apply to any entity or any subsidiary or affiliate of such entity that was subject to the terms of such section and that had reserves that did not exceed the presumptive reserve ceiling set forth in such section on its effective date.
§ 2. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD16062-02-8
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.