What's happening
This bill allows municipalities to join a county self-funded or self-insured health plan if certain financial and administrative requirements are met.
Why it matters
Expands access to potentially more affordable or comprehensive health coverage. for municipalities by letting them join county self-funded/self-insured plans, which can leverage larger risk pools and administrative efficiencies.
Imposes strict financial safeguards. Counties must maintain substantial reserve funds (13–15% of medical claims, 4% of prescription claims) and purchase high-deductible stop-loss insurance, reducing the risk of insolvency and protecting both counties and municipalities.
Establishes state oversight and annual compliance. The county must certify compliance with all requirements to the Superintendent of Financial Services, and the state has the authority to review these certifications, ensuring ongoing fiscal responsibility and legal compliance.
Requires formal agreements on liability. Mandates that counties and participating municipalities establish clear agreements covering contingent liabilities, clarifying financial responsibilities if the health plan encounters deficits, which protects taxpayers and plan members.
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Who cares
Headline styles
Let Towns Join County Health
Plain English, a few words. Used as the page title.
Sponsors
History
- Referred to insurance
- Delivered to assembly
- Passed senateVote 61–1
- Ordered to third reading cal.1827
- Committee discharged and committed to rules
- Print number 3660a
- Amend and recommit to insurance
- Referred to insurance
- 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.
Let Towns Share Health Plans
In Assembly Committee · Insurance · Sponsor Phil Steck
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
3660--A
2017-2018 Regular Sessions
IN SENATE
January 25, 2017
Introduced by Sens. GRIFFO, AMEDORE, HELMING, LITTLE, MARCHIONE, O'MARA, RITCHIE, TEDISCO, VALESKY -- read twice and ordered printed, and when printed to be committed to the Committee on Insurance -- recommitted to the Committee on Insurance in accordance with Senate Rule 6, sec. 8 -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee
AN ACT authorizing municipalities to join a county self-funded or selfinsured health plan
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Notwithstanding articles 44 or 47 of the insurance law or any other provision of law to the contrary, and subject to the requirements set forth in this section, a municipality is permitted, with the consent of the county and the governing body of such municipality, to join a county self-funded or self-insured health plan in any county in which such municipality is located in whole or in part. Municipality is defined as any city, town, village or any other municipal corporation, a school district or any governmental entity operating a public school, college or university, a public improvement or special district, a public authority, commission, or public benefit corporation, or any other public corporation, agency or instrumentality or unit of government which exercises governmental powers under the laws of the state but is not a part of, nor a department of, nor an agency of the state. In order for a municipality to join the county self-funded or self-insured health plan, the county shall file with the superintendent of financial services certification that, with inclusion of the lives to be covered in the plan following admission of the municipality, the county selffunded or self-insured health plan meets the following four requirements:
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD07657-03-8
S. 3660--A 2
(a) That it maintain a reserve fund, calculated as a percentage of total annual incurred claims, of a minimum of 13% and a maximum of 15% of medical claims and a minimum of 4% of prescription claims.
(b) It has in effect a specific stop loss per individual claim only, no aggregate, and with a minimum deductible of $200,000 to $250,000.
(c) It has a minimum of 1,000 covered lives including retirees, but not including dependents.
(d) The plan has in effect an agreement between itself and any municipalities that have joined the plan such that the plan satisfies the contingent liability provisions set forth in section 4708 of the insurance law.
The superintendent of financial services shall have the authority to review such certification to determine that the four aforementioned requirements have been met; provided, however, that in the absence of a finding of the superintendent to the contrary within a six-month period following the filing of such certification, the admission of the municipality to the county self-funded or self-insured health plan shall take effect. In January of every year following the initial filing of such certification, the county shall file a subsequent certification that the four aforementioned requirements remain in full force and effect.
§ 2. This act shall take effect immediately.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act authorizing municipalities to join a county self-funded or self-insured health plan
Purpose
Self-insurance or self-funding for health insurance is significantly less expensive than contracting out to private health insurers but requires a sufficient number of employees to be economically possible. Accordingly, at least 19 Counties currently self-insure. On the other hand, most municipalities, including school districts, do not have enough employees to self-insure. This bill allows them to do so by giving them the potential to join County self-insurance plans.
Summary of provisions
Section 1. A municipality is permitted to join a county self-funded or self-insured health plan in any county in which such municipality is located in whole or in part. Municipality is defined as any city, town, village or any other municipal corporation, a school district or any governmental entity operating a public school, college or university, public improvement or special district, public authority, commission, or public benefit corporation, or any other public corporation, agency or instrumentality or unit of government which exercises governmental powers under the laws of the state should the self-insured county and the municipality or municipalities conjoined meet the following require- ments:
Read the full memo (669 words)
1 That it maintain a reserve fund, calculated as a percentage of total annual incurred claims, of a minimum of 13% and a maximum of 15% of medical claims and a minimum of 4% of prescription claims.
2. It has in effect a Specific Stop Loss per individual claim only, no aggregate, and with a minimum deductible of $200,00 to $250,000.
3. It has a minimum of 1,000 covered lives including retirees, but not including dependents.
4. The plan has in effect an agreement between itself and any munici- palities that have joined the plan such that the plan satisfies the contingent liability provisions set forth in section 4708 of the Insur- ance Law.
Section 2: Effective date .
Justification
Municipalities and the New York State Association of Counties have requested and support the bill. In addition, certain health insurers are preparing for the inevitability of self-insurance plans, by establishing departments that serve such plans. The role of the private insurer is reduced, since the private insurer no longer handles plan funds, nor does it profit from plan funds, but is still needed for claims process- ing and may charge fees for doing so.
The revised bill was developed after discussion with the Department of Financial Services (DFS) and self-insurance consultants. DFS does not regulate self-insured plans. Therefore, DFS favors municipal consortia to be formed pursuant to Article 47 of the Insurance Law. However, Article 47 has deterred the formation of municipal health insurance consortia due to the time and cost involved in seeking DFS approval to such a remarkable extent that only one county has formed such a consor- tium which incorporates constituent municipalities. This law allows municipalities to join county self-insured health plans so long as certain criteria are met, criteria which DFS would typically require in the formation of a consortium. Thus, the bill further a DFS goal to enhance the financial stability of county self-insured health plans by making sure that certain requirements be met if they wish to admit addi- tional municipalities into the plan, but at the same time guarantees municipalities access to a self-insured plan without having to create one from scratch. Since self-insured health plans provide the greatest array of benefits at lowest cost, allowing municipalities to join these plans will benefit the taxpayers and municipal employees alike.
Legislative history
2015/2016: S.4466/A.739 Referred to Insurance 2013/2014: S.6633/A.8362-A Referred to Insurance
Fiscal implications
Only positive. By bringing in more members to a County self-insured plan, spreading of risk is enhanced, and costs to the County and its employees are potentially reduced. In addition, municipal costs are reduced by paying less for health insurance, which is critical in a tax cap environment. Employee costs are likewise reduced. For example, the Albany County self-insured health plan costs employees approximately 50% less than NYSHIP.
Effective date
Immediate.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.