senate Bill S5218

Relates to rates and payments under the child health insurance plan

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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

  • 14 / May / 2013
    • REFERRED TO INSURANCE
  • 03 / Jun / 2013
    • REPORTED AND COMMITTED TO FINANCE
  • 20 / Jun / 2013
    • COMMITTEE DISCHARGED AND COMMITTED TO RULES
  • 20 / Jun / 2013
    • ORDERED TO THIRD READING CAL.1572
  • 20 / Jun / 2013
    • SUBSTITUTED BY A7882

Summary

Relates to rates and payments under the child health insurance plan; provides for determination of contract rates by the superintendent and for adjustment of subsidy payments through March 31, 2014.

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Bill Details

See Assembly Version of this Bill:
A7882
Versions:
S5218
Legislative Cycle:
2013-2014
Law Section:
Insurance Law
Laws Affected:
Amd §1120, Ins L; amd §2511, Pub Health L

Sponsor Memo

BILL NUMBER:S5218

TITLE OF BILL: An act to amend the insurance law and the public
health law, in relation to the child health insurance plan

PURPOSE: To clarify the prior approval rate setting process for CHP
and repeal the automatic subsidy payment reduction for organizations
approved to provide CHP that results in a twenty-eight percent
difference between the average subsidy payment for all organizations
approved to provide CHP on April 1, 2010, and the subsidy amount that
the organization would otherwise receive as determined by the
Department of Financial Services.

SUMMARY OF PROVISIONS:

Section 1 amends section 1120 of the insurance law to clarify that the
Superintendent of the Department of Financial Services has the
authority to determine rates for CHP contracts.

Section 2 amends section 2511 of the public health law to sunset the
automatic CHP subsidy reduction effective March 31, 2014.

JUSTIFICATION: Premium rates for CHP contracts are currently
determined by the Superintendent of Financial Services. This bill
confirms and clarifies the Superintendent's rate making authority to
ensure regulatory action is not taken to change the rate-making
process.

The 2010 New York State Budget imposed a twenty-eight percent
reduction to CHP subsidy payment amounts that exceeded the statewide
average CHP subsidy payment for the State Fiscal Year beginning April
1, 2010. This statutory provision was intended to be a one-time cut to
help fill a Budget deficit for the 2010-11 State Fiscal Year. However,
because the drafters of that provision inadvertently failed to include
a sunset date, the twenty-eight percent subsidy reduction has been
automatically reoccurring every year, erroneously reducing all
justifiable subsidy increases approved by the Department of Financial
Services (DFS) by amounts above the 201 statewide average premiums
from 2010. This legislation would correct this harmful drafting error
to allow reasonable increases that are approved by DFS to be received
without being reduced by a statutory provision that was never intended
to continue beyond 2010

LEGISLATIVE HISTORY: This is a new bill

FISCAL IMPLICATIONS: To be determined.

EFFECTIVE DATE: This act shall take effect immediately.

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

                                  5218

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                              May 14, 2013
                               ___________

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 and the public health law, in relation
  to the child health insurance plan

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

  Section  1.  Subsection  (c)  of section 1120 of the insurance law, as
added by chapter 922 of the   laws  of  1990,  is  amended  to  read  as
follows:
  (c)  The duration of such contracts or arrangements, THE RATES OF SUCH
CONTRACTS, and the extent of exposure thereunder  by  insurers,  article
forty-three  corporations  or  health maintenance organizations shall be
determined by the superintendent.
  S 2. Paragraph (e) of subdivision 8 of  section  2511  of  the  public
health  law,  as  added  by section 21-a of part B of chapter 109 of the
laws of 2010, is amended to read as follows:
  (e) The commissioner shall adjust subsidy payments to approved  organ-
izations  made  on and after April first, two thousand ten THROUGH MARCH
THIRTY-FIRST, TWO THOUSAND FOURTEEN, so that the  amount  of  each  such
payment,  as  otherwise  calculated  pursuant  to  this  subdivision, is
reduced by twenty-eight percent of the amount by which  such  calculated
payment  exceeds  the statewide average subsidy payment for all approved
organizations in effect on April first, two thousand ten. Such statewide
average subsidy payment shall be  calculated  by  the  commissioner  and
shall not reflect adjustments made pursuant to this paragraph.
  S 3. This act shall take effect immediately.


 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD10976-01-3

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