What's happening
This bill requires public corporations in New York to provide written notice about health insurance contracts or changes to retired officers, employees, and their families.
Why it matters
Increases transparency and participation. By requiring public corporations to notify retired officers, employees, and their families in writing about upcoming changes to health insurance contracts or plans, the bill ensures that those affected have advance notice and can better understand or respond to changes that may impact their coverage or costs.
Mandates detailed information sharing. The notification must include either the full contract or amendment text with relevant financial details (such as costs to both the public corporation and retirees) or a summary with clear instructions on where to access all details online. This empowers retirees with the information needed to make informed decisions about their health coverage.
Covers both negotiated and non-negotiated changes. The bill applies whether changes are made through labor negotiations or independently by the public corporation, closing a gap where some retirees might previously have been left uninformed about alterations that affect their benefits.
Potential impact on administrative practices. Public corporations will need to update their procedures to comply with these notice requirements, possibly leading to increased administrative work but also promoting greater accountability to retired public servants and their families.
Albany, before your first meeting.
Every bill that moved yesterday, summarized in a sentence and ranked by impact. The Albany Scorecard follows on Sundays.
Free. Unsubscribe in one click. Want alerts on specific bills? Create an account.
Who cares
Headline styles
Notify Retirees on Insurance Changes
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to local government
- Referred to local government
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.
Notify Retirees of Insurance Changes
In Assembly Committee · Governmental Employees · Sponsor Thomas Abinanti
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
5930
2019-2020 Regular Sessions
IN SENATE
May 16, 2019
Introduced by Sen. BRESLIN -- read twice and ordered printed, and when printed to be committed to the Committee on Local Government
AN ACT to amend the general municipal law, in relation to providing notice of health insurance contracts for retired officers, employees, and their families
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Subdivision 2 of section 92-a of the general municipal law, as amended by chapter 805 of the laws of 1984 and as further amended by section 104 of part A of chapter 62 of the laws of 2011, is amended and a new subdivision 2-a is added to read as follows:
2. [A] Consistent with the provisions of subdivision two-a of this section, a public corporation may contract with a non-profit membership corporation, organized under article forty-three of the insurance law and approved by the superintendent of financial services and the state board of social welfare, or with any insurance company authorized to do business in this state for the purpose of furnishing medical and surgical services and hospital service as defined in such article fortythree, or medical and surgical and hospital insurance to persons who contract with such non-profit membership corporation or insurance company, or who subscribe to a plan or plans, as hereinafter provided. Any such contract entered into by a public corporation shall permit any officer or employee or group of officers or employees of an agency or department of the public corporation voluntarily to subscribe to a plan or plans providing for medical and surgical and hospital insurance for, or medical and surgical services and hospital service to, such officers or employees and their families. Any such contract entered into by a public corporation may, if authorized by the governing board or body and subject to such conditions, limitations and eligibility requirements as may be fixed by such board or body, permit any retired officers and employees or group of retired officers and employees of an agency or
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD11733-01-9
S. 5930 2
department of the public corporation voluntarily to subscribe to such a plan or plans to provide such insurance for or service to themselves and their families. The comptroller or other disbursing officer of the public corporation, or of any fund out of which officers or employees of such public corporation are paid, is authorized to deduct from the wages or salary of such contracting or subscribing officer or employee, with his prior consent, in writing, the sums required to be paid by such officer or employee to such non-profit membership corporation or insurance company. Such public corporation, if such contract or plan provides that the employer shall contribute a share of the cost of such medical and surgical services and hospital service, or medical and surgical and hospital insurance, for its officers and employees or retired officers and employees, is authorized to appropriate a sum required to be paid under such contract by the public corporation as employer. The sum to be paid by it under such contract, in the discretion of such public corporation, may be any percentage of the total cost including the whole thereof. Where the compensation of any officer or employee whose position is covered by medical and surgical services and hospital service or medical and surgical and hospital insurance pursuant to this section is paid from a special or administrative fund provided for by law, the contributions required to be paid by the public corporation for such coverage shall be paid from such special or administrative fund. The public corporation shall be authorized to pay directly to such non-profit membership corporation or to such insurance company, the total of such appropriation and of such officer and employee deductions.
2-a. Forty-five days prior to the governing board of a public corporation authorizing or approving a contract or plan of health insurance, or an amendment thereto, for retired officers, retired employees, or their families pursuant to subdivision two of this section, the public corporation shall give written notice of such proposed contract, plan or amendment, to the retired officers, retired employees, or their families who are covered under such contract or plan. Where the contract, plan or amendment is contracted for as part of negotiations between a public corporation and a recognized and certified employee organization pursuant to article fourteen of the civil service law, such written notice shall be given at the time such health insurance contract is binding on the covered retired officers, retired employees, or their families. Such written notice shall contain either: (a) the full text of such proposed contract, plan or amendment and any relevant financial information including, but not limited to the cost of the proposed contract, plan or amendment to the public corporation and the cost to the covered retired officers, retired employees, or their families; or (b) the general terms of the proposed contract, plan or amendment along with the physical location and web address to a secure website where the covered retired officers, retired employees or their family members can obtain the full text of such proposed contract, plan or amendment and any relevant financial information including, but not limited to the cost of the proposed contract, plan or amendment to the public corporation and the cost to the covered retired officers, retired employees, or their families.
§ 2. This act shall take effect immediately and shall apply to any health insurance contract or plan entered into, renewed, modified, or amended on or after such effective date.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the general municipal law, in relation to providing notice of health insurance contracts for retired officers, employees, and their families
Purpose or general idea of bill
To provide notice to retirees affected by proposed changes in a health insurance plan before the changes are adopted by a public corporation.
Summary of specific provisions
Section 1 of the bill would amend General Municipal Law Section 92 by adding a new subdivision 2-a to require that the governing board of a public corporation give forty-five days prior notice of a change in a health insurance plan to retired employees or their families who are covered under such plan. Where the contract, plan or amendment is contracted for as part of negotiations between a public corporation and a recognized and certified employee organization, such notice shall be given at the time such health insurance contract is binding on the covered officers, retired employees or families. This section also provides that such written notice shall contain either: (a) the full text of such proposed contract, plan or amendment and any relevant financial information including, but not limited to the cost of the proposed contract, plan or amendment to the public corporation and the cost to the covered retired officers, retired employees, or their fami- lies; or, (b) the general terms of the proposed contract, plan or amend- ment along with the physical location and web address to a secure website where the covered retired officers, retired employees or their family members can obtain the full text of such proposed contract, plan or amendment and any relevant financial information including, but not limited to the cost of the proposed contract, plan or amendment to the public corporation and the cost to the covered retired officers, retired employees, or their families.
Justification
There are no statutory provisions requiring that retired employees be-notified of a proposed change in their health insurance plan. With the cost of health insurance rapidly rising, it is essential that retired employees and their families who are financially affected be given appropriate notice when a governmental unit changes their health benefits. This is especially true for retired public employees who have no collective bargaining rights and are often confronted after-the-fact or without prompt notice of higher premium charges or co-pay amounts without concomitant increases in their pensions. The Governor's veto message indicated the notice period of time was too long. This bill has been revised to decrease the notice required from 90 days to 45 days to address the Governor's concern.
Prior legislative history
2016 - S2448A 2017 - S4324
Fiscal implications
There may be minor costs associated with the distribution of the notice but cost savings from retired employees' offering cost effective alter- natives to the proposed changes.
Effective date
This act shall take effect immediately and shall apply to any health insurance contract or plan entered into, renewed, modified, or amended on or after such effective date.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.