What's happening
This bill extends the effectiveness of certain insurance laws related to catastrophic or reinsurance coverage for small groups from four to nine years.
Why it matters
Extending the law’s duration gives small businesses more stability and predictability. regarding their ability to access catastrophic or reinsurance health coverage options, which can be crucial for budgeting and long-term planning.
The extension provides more time for policymakers and the insurance industry to assess the real-world impact. of allowing these types of coverage for small groups, potentially informing future reforms or permanent changes.
Without this extension, small businesses could have abruptly lost access to certain insurance products. , possibly forcing them into more expensive or less comprehensive coverage, or even to go without, which could affect both employer finances and employee health security.
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Who cares
Headline styles
Extend Small Group Coverage
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Substituted by A11014
- Ordered to third reading cal.1988
- 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.
Extend Small Group Coverage
Signed by Governor · Sponsor Vivian Cook
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
8995
IN SENATE
June 12, 2018
Introduced by Sen. SEWARD -- read twice and ordered printed, and when printed to be committed to the Committee on Rules
AN ACT to amend chapter 589 of the laws of 2015, amending the insurance law relating to catastrophic or reinsurance coverage issued to certain small groups, in relation to the effectiveness thereof; and to amend chapter 588 of the laws of 2015, amending the insurance law relating to catastrophic or reinsurance coverage issued to certain small groups, 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 5 of chapter 589 of the laws of 2015, amending the insurance law relating to catastrophic or reinsurance coverage issued to certain small groups, as amended by chapter 370 of the laws of 2017, is amended to read as follows:
§ 5. This act shall take effect on the same date and in the same manner as 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, takes effect and shall be deemed repealed [four] nine years thereafter.
§ 2. Section 5 of chapter 588 of the laws of 2015, amending the insurance law relating to catastrophic or reinsurance coverage issued to certain small groups, as amended by chapter 370 of the laws of 2017, is amended to read as follows:
§ 5. This act shall take effect immediately; and shall be deemed repealed [4] 9 years after it shall have become a law.
§ 3. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD16034-01-8
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend chapter 589 of the laws of 2015, amending the insurance law relating to catastrophic or reinsurance coverage issued to certain small groups, in relation to the effective- ness thereof; and to amend chapter 588 of the laws of 2015, amending the insurance law relating to catastrophic or reinsurance coverage issued to certain small groups, in relation to the effectiveness thereof
Purpose
To extend provisions allowing for the sale of stop loss coverages to certain small groups and exempting certain municipal corporations from small group rating standards.
Summary of provisions
Section one of the bill would extend for an additional five years the provisions of chapter 589 of the laws of 2015, as amended by chapter 12 of the laws of 2016, which provided that small groups between the size of 51-100 who had reinsurance policies in effect on 1/1/2015 may contin- ue to eligible to renew such policy or purchase re-insurance between 1/1/2016 and 1/1/2017 and renew such policy thereafter, and which also exempted municipal corporations with member employers with 100 or fewer employees from small group rating standards.
Section two of the bill would extend for an additional five years the provisions of chapter 588 of the laws of 2015, as amended by chapter 12 of the laws of 2016, which provided that small groups between the size of 51-100 who had reinsurance policies in effect on 1/1/2015 may contin- ue to eligible to renew such policy or purchase re-insurance between 1/1/2016 and 1/1/2017 and renew such policy thereafter, and which also exempted municipal corporations with member employers with 100 or fewer employees from small group rating standards.
Section three of the bill provides the effective date.
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 pres- sure 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, as amended by chapter 12 of 2016, grandfathered 51-100 member groups which had self-insurance with stop loss coverage as of January 1st, 2015, as long as they kept their coverage in effect and also exempted municipal corporations with member employers with 100 or fewer employees from small group rating standards. This bill would extend these provisions for an additional five years.
Legislative history
New bill.
Fiscal implications
None.
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.