Assembly Bill A3294

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

                                  3294

                       2009-2010 Regular Sessions

                          I N  A S S E M B L Y

                            January 26, 2009
                               ___________

Introduced by M. of A. WEPRIN -- Multi-Sponsored by -- M. of A. PERRY --
  read once and referred to the Committee on Insurance

AN  ACT to amend the insurance law, in relation to prepaid health insur-
  ance plans

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

  Section  1.  Subsection  (b)  of section 4326 of the insurance law, as
amended by chapter 342 of the laws  of  2004,  is  amended  to  read  as
follows:
  (b)  Participation  in  the  program  established  by this section and
section four thousand three hundred  twenty-seven  of  this  article  is
limited  to  corporations  or  insurers organized or licensed under this
article or article forty-two of this chapter [and],  health  maintenance
organizations issued a certificate of authority under article forty-four
of  the  public  health law or licensed under this article, AND ENTITIES
CERTIFIED UNDER SECTION FORTY-FOUR HUNDRED THREE-A OF THE PUBLIC  HEALTH
LAW. Participation by all health maintenance organizations is mandatory,
provided,  however,  that  such requirements shall not apply to a health
maintenance organization exclusively serving individuals enrolled pursu-
ant to title eleven of article five of the social  services  law,  title
eleven-D  of  article  five  of  the social services law, title one-A of
article twenty-five of the public health law or title  eighteen  of  the
federal  Social  Security  Act,  and, further provided, that such health
maintenance organization shall not discontinue a contract for  an  indi-
vidual  receiving comprehensive-type coverage in effect prior to January
first, two thousand four who is ineligible to purchase policies  offered
after  such date pursuant to this section or section four thousand three
hundred twenty-two of this article due to the  provision  of  42  U.S.C.
1395ss in effect prior to January first, two thousand four. On and after
January  first,  two  thousand one, all health maintenance organizations
shall offer qualifying group health insurance contracts  and  qualifying

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD06939-01-9
              

A. 3294                             2

individual  health  insurance  contracts as defined in this section. For
the purposes of this section and section  four  thousand  three  hundred
twenty-seven  of  this  article,  article forty-three corporations [or],
article   forty-two   insurers   OR  ENTITIES  CERTIFIED  UNDER  SECTION
FORTY-FOUR HUNDRED THREE-A OF THE PUBLIC HEALTH  LAW  which  voluntarily
participate in compliance with the requirements of this program shall be
eligible  for reimbursement from the stop loss funds created pursuant to
section four thousand three hundred twenty-seven of this  article  under
the same terms and conditions as health maintenance organizations.
  S  2.  This  act  shall take effect immediately and shall apply to all
contracts altered, modified or amended on and after such effective date.