senate Bill S6810

Amended

Relates to managed care health savings accounts

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Bill Status


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor
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actions

  • 23 / Mar / 2012
    • REFERRED TO INSURANCE
  • 25 / Apr / 2012
    • 1ST REPORT CAL.569
  • 26 / Apr / 2012
    • 2ND REPORT CAL.
  • 30 / Apr / 2012
    • ADVANCED TO THIRD READING
  • 14 / May / 2012
    • AMENDED ON THIRD READING 6810A
  • 30 / May / 2012
    • PASSED SENATE
  • 30 / May / 2012
    • DELIVERED TO ASSEMBLY
  • 30 / May / 2012
    • REFERRED TO INSURANCE
  • 14 / Jun / 2012
    • RECALLED FROM ASSEMBLY
  • 14 / Jun / 2012
    • RETURNED TO SENATE
  • 14 / Jun / 2012
    • VOTE RECONSIDERED - RESTORED TO THIRD READING
  • 14 / Jun / 2012
    • AMENDED ON THIRD READING 6810B
  • 21 / Jun / 2012
    • SUBSTITUTED BY A9711B

Summary

Relates to managed care health savings accounts.

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Bill Details

See Assembly Version of this Bill:
A9711
Versions:
S6810
S6810A
S6810B
Legislative Cycle:
2011-2012
Law Section:
Insurance Law
Laws Affected:
Add ยง1124, Ins L

Votes

11
0
11
Aye
0
Nay
5
aye with reservations
1
absent
1
excused
0
abstained
show Insurance committee vote details

Sponsor Memo

BILL NUMBER:S6810

TITLE OF BILL:
An act
to amend the insurance law, in relation to a health savings account
pilot program and providing for the repeal of such provisions upon the
expiration
thereof

PURPOSE:
This bill would allow the use of high deductible health plan
in conjunction with a health reimbursement account (HRA) or a health
savings account (HSA), in the context of an HMO product.

SUMMARY OF PROVISIONS:
The bill would add new section 1124 to the
insurance law in order to establish a pilot program permitting HMOs
to offer group high deductible health plans in conjunction with an
HRA or an HSA

JUSTIFICATION:
High Deductible Health Plans, when used in conjunction
with HRAs or HSAs, have become a popular way for employers to
continue to provide their employees with health coverage, while
maintaining sonic control and predictability in the face of the
ever-increasing costs of health care. Employers, especially
municipalities, have expressed an increasing demand for these products.

Current law permits insurance companies to offer high deductible
health plans, but has been interpreted by the Department of Health
and the Department of Financial Services to prohibit such products to
be offered by HM0s. HMO products are typically more affordable and
more comprehensive than health insurance policies, leading employers
to request the ability to pair an HMO product with a high deductible
HRA/HSA structure.

This bill would establish a pilot program, limited to municipalities,
to allow HMOs to offer group high deductible health plans, in
conjunction with an HRA or an HSA. Municipalities participating in
the pilot program must be required to contribute at least equal to
the deductible required by the plan. Such an approach will allow
municipalities to fulfill the obligations of collective bargaining
agreements and provide employees with comprehensive health insurance
coverage, while maintaining more manageable and predictable costs for
such coverage. The cost of health care has repeatedly been identified
by municipalities as a critical issue and a significant driver behind
property tax increases and other budget issues, The flexibility
permitted by this pilot program will provide municipalities with
another tool for addressing these problems.

An HMO offering this product would be required to report to the
Department of Financial Services on a variety of measures, including
consumer satisfaction and access to care.

LEGISLATIVE HISTORY:
New bill.

FISCAL IMPLICATIONS:
None.

EFFECTIVE DATE:
Immediately and shall expire December 31, 2015.

view bill text
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  6810

                            I N  S E N A T E

                             March 23, 2012
                               ___________

Introduced  by  Sen.  SEWARD -- read twice and ordered printed, and when
  printed to be committed to the Committee on Insurance

AN ACT to amend the insurance law,  in  relation  to  a  health  savings
  account  pilot program and providing for the repeal of such provisions
  upon the expiration thereof

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.  The insurance law is amended by adding a new section 1124
to read as follows:
  S 1124. HEALTH SAVINGS ACCOUNT PILOT PROJECT. (A) A HEALTH MAINTENANCE
ORGANIZATION CERTIFIED PURSUANT TO  ARTICLE  FORTY-FOUR  OF  THE  PUBLIC
HEALTH  LAW MAY OFFER A GROUP HIGH DEDUCTIBLE HEALTH PLAN IN CONJUNCTION
WITH A HEALTH REIMBURSEMENT ACCOUNT OR A HEALTH SAVINGS  ACCOUNT  ESTAB-
LISHED PURSUANT TO FEDERAL TAX LAW, WHEN:
  (1)  THE EMPLOYER GROUP PURCHASING THE HIGH DEDUCTIBLE PLAN IS A MUNI-
CIPALITY, AND
  (2) THE EMPLOYER IS OBLIGATED TO CONTRIBUTE, PURSUANT TO A  COLLECTIVE
BARGAINING AGREEMENT OR OTHER BINDING ARRANGEMENT WITH ITS EMPLOYEES, AN
AMOUNT  AT  LEAST  EQUAL  TO  THE  DEDUCTIBLE REQUIRED UNDER THE PLAN ON
BEHALF OF EACH ENROLLED EMPLOYEE.
  (B) A HIGH DEDUCTIBLE HEALTH PLAN OFFERED PURSUANT TO  SUBSECTION  (A)
OF  THIS  SECTION,  WHICH  OTHERWISE  MEETS  THE REQUIREMENTS OF ARTICLE
FORTY-FOUR OF THE PUBLIC HEALTH LAW, SHALL BE DEEMED TO PROVIDE  COMPRE-
HENSIVE  HEALTH  SERVICES  AND  SHALL NOT BE DISAPPROVED DUE TO ITS COST
SHARE ARRANGEMENT.
  (C) ANY ORGANIZATION PARTICIPATING IN THE PILOT PROGRAM SHALL  FILE  A
REPORT  WITH  THE  SUPERINTENDENT  DETAILING  THE IMPACT OF THE PROGRAM,
INCLUDING BUT NOT LIMITED TO INFORMATION REGARDING CONSUMER SATISFACTION
AND ACCESS TO CARE, NO LATER THAN APRIL FIRST, TWO THOUSAND FOURTEEN.
  S 2. This act shall take effect immediately and shall expire  December
31,  2015 when upon such date the provisions of this act shall be deemed
repealed.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD15062-01-2

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