Assembly Bill A3535

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

                                  3535

                       2009-2010 Regular Sessions

                          I N  A S S E M B L Y

                            January 27, 2009
                               ___________

Introduced  by M. of A. BRADLEY -- read once and referred to the Commit-
  tee on Insurance

AN ACT to amend the public authorities law, in relation to  establishing
  the New York state health insurance authority

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

  Section 1. Article 8 of the  public  authorities  law  is  amended  by
adding a new title 20 to read as follows:
                                TITLE 20
                NEW YORK STATE HEALTH INSURANCE AUTHORITY
SECTION 2489-A. SHORT TITLE.
        2489-B. STATEMENT OF LEGISLATIVE FINDINGS.
        2489-C. NEW YORK STATE HEALTH INSURANCE AUTHORITY.
        2489-D. GENERAL PURPOSES AND POWERS OF THE AUTHORITY.
        2489-E. REPORT  AND RECOMMENDATIONS OF THE NEW YORK STATE HEALTH
                  INSURANCE AUTHORITY.
  S 2489-A. SHORT TITLE. THIS TITLE SHALL BE KNOWN AND MAY BE  CITED  AS
THE "NEW YORK STATE HEALTH INSURANCE AUTHORITY ACT".
  S  2489-B.  STATEMENT  OF LEGISLATIVE FINDINGS. THE LEGISLATURE HEREBY
FINDS AND DETERMINES THAT HEALTH INSURANCE IS A NECESSITY THAT SHOULD BE
MAINTAINED BY EVERY CITIZEN OF THE STATE. THAT DUE TO THE EVER  ESCALAT-
ING  COST  OF  HEALTH  INSURANCE,  IT HAS BECOME EVER MORE DIFFICULT FOR
EMPLOYERS TO OFFER SUCH COVERAGE AS A BENEFIT, AND STILL REMAIN  COMPET-
ITIVE  IN  THE  GLOBAL MARKET PLACE. AS A RESULT, THE LEGISLATURE HEREBY
FURTHER FINDS AND DETERMINES THAT IT HAS NOW BECOME NECESSARY TO DEVELOP
A NEW MECHANISM TO EFFECTIVELY AND  EFFICIENTLY  DELIVER  HIGH  QUALITY,
PORTABLE HEALTH INSURANCE TO EVERY CITIZEN IN NEW YORK STATE.
  THE  LEGISLATURE  ADDITIONALLY  FINDS  AND DETERMINES THAT THE PRESENT
MATRIX SYSTEM FOR HEALTH INSURANCE AND MEDICAID HAS BECOME BOTH  INEFFI-
CIENT  AND INEFFECTIVE, LEADING TO UNNECESSARILY HIGH COSTS, THE FAILURE
TO PROVIDE SUFFICIENT COVERAGE TO A SIGNIFICANT NUMBER OF PEOPLE, AND  A

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD03523-01-9
              

A. 3535                             2

REDUCED  QUALITY  OF  HEALTH  INSURANCE BENEFITS AND HEALTH CARE, IT HAS
ESSENTIALLY LED TO A SYSTEM WHERE HEALTH INSURANCE IS  NOT  SUFFICIENTLY
AFFORDABLE,  AVAILABLE  OR PORTABLE FOR THE CITIZENS OF THE STATE OF NEW
YORK.
  IN ORDER TO MEET THE NEEDS OF THE STATE'S MODERN SOCIETY, AND IN ORDER
TO  REMOVE THE HEAVY BURDENS THAT THE CURRENT MATRIX SYSTEM OF PROVIDING
HEALTH INSURANCE AND MEDICAID NOW IMPOSES UPON THE  STATE'S  BUSINESSES,
CITIZENS  AND  TAXPAYERS,  AND THEREBY IMPROVE BOTH THE STATE'S BUSINESS
AND ECONOMIC CLIMATE, AS WELL AS IMPROVE THE  HEALTH  CARE  OF  ALL  THE
STATE'S CITIZENS, THE LEGISLATURE FINDS AND DETERMINES THAT A NEW HEALTH
INSURANCE  AND MEDICAID SYSTEM NEEDS TO BE DEVELOPED BY THE STATE OF NEW
YORK, TO ASSURE HIGH QUALITY, LOW COST, PORTABLE HEALTH INSURANCE COVER-
AGE FOR EVERY CITIZEN OF THE STATE.
  THE LEGISLATURE ALSO FINDS AND  DETERMINES  THAT  THE  BEST  AND  MOST
APPROPRIATE  MECHANISM  TO  ACCOMPLISH THE DELIVERY OF HIGH QUALITY, LOW
COST, PORTABLE HEALTH INSURANCE TO ALL THE CITIZENS OF NEW YORK STATE IS
A PUBLIC AUTHORITY, INCORPORATED BY THE LEGISLATURE, FOR THE PURPOSE  OF
PROVIDING  THIS  PUBLIC BENEFIT. SUCH PUBLIC AUTHORITY SHALL BE KNOWN AS
THE NEW YORK STATE HEALTH INSURANCE AUTHORITY.
  THE LEGISLATURE FURTHER FINDS AND DETERMINES THAT IN ORDER  TO  ACCOM-
PLISH  THIS  STATE  POLICY OF PROVIDING HIGH QUALITY, LOW COST, PORTABLE
HEALTH INSURANCE TO EVERY CITIZEN OF NEW YORK, THAT THE NEW  YORK  STATE
HEALTH  INSURANCE  AUTHORITY  SHALL  USE  ECONOMIES OF SCALE TO PURCHASE
HEALTH INSURANCE FROM THE PRIVATE MARKET. IN SO DOING, IT  WILL  COMBINE
THE  BENEFITS  OF  CAPITALISM  WITH  THE  PURCHASING  POWER OF THE STATE
GOVERNMENT, TO PROMOTE COMPETITION FOR THE PROVISION  OF  HIGH  QUALITY,
LOW  COST,  PORTABLE  HEALTH INSURANCE COVERAGE FOR EVERY CITIZEN OF NEW
YORK.
  THE LEGISLATURE ALSO FINDS AND DETERMINES, THAT IN  ORDER  TO  PROVIDE
FOR  THE  ECONOMIES OF SCALE TO TAKE ADVANTAGE OF THE COMPETITION IN THE
PRIVATE MARKETPLACE, THE NEW YORK STATE HEALTH INSURANCE AUTHORITY SHALL
DEVELOP AND DESIGN  A  STANDARDIZED,  HIGH  QUALITY,  UNIFORM,  PORTABLE
HEALTH INSURANCE POLICY. SUCH POLICY SHALL BE DELIVERED TO EVERY CITIZEN
OF  NEW  YORK  WITHOUT  DIRECT  CHARGE TO THE CITIZEN. SUCH POLICY SHALL
CONTAIN ALL THE COVERAGE REQUIREMENTS FOR LARGE GROUP  HEALTH  INSURANCE
POLICIES  SET  FORTH  WITHIN  THE INSURANCE LAW, TOGETHER WITH LONG TERM
CARE COVERAGE FOR NURSING HOME CARE.
  THE LEGISLATURE ADDITIONALLY FINDS AND DETERMINES THAT  THE  FINANCING
OF  THE  PROVISION  OF  SUCH  HEALTH INSURANCE AND LONG TERM CARE POLICY
BENEFITS TO ALL THE CITIZENS OF THE STATE OF  NEW  YORK  SHALL  BE  DONE
THROUGH  A  COMBINATION  OF  STATE DIRECTED FEDERAL MEDICAID FUNDS AND A
DEDICATED STATE TAX, WITH THE REVENUES DERIVED FROM SUCH BEING APPROPRI-
ATED TO THE NEW YORK STATE HEALTH  INSURANCE  AUTHORITY.  THE  DEDICATED
STATE  TAX  SHALL BE A PORTION OF THE STATE AND LOCAL SALES AND USE TAX,
AND IF NECESSARY, A PAYROLL TAX BASED UPON EMPLOYEE  WAGES.  IT  IS  THE
FURTHER  INTENT  OF THIS LEGISLATURE, THAT THROUGH THE PROVISION OF SUCH
HEALTH INSURANCE AND LONG TERM CARE POLICY BENEFITS TO ALL THE  CITIZENS
OF THE STATE OF NEW YORK, THAT THIS NEW MATRIX DEVELOPED BY THE NEW YORK
STATE  HEALTH  INSURANCE  AUTHORITY,  SHALL REPLACE THE CURRENT EMPLOYER
FUNDED HEALTH INSURANCE AND STATE MEDICAID MATRIX SYSTEMS.
  THE LEGISLATURE ALSO FINDS AND DETERMINES THAT IN  ORDER  TO  MAXIMIZE
THE COST EFFECTIVENESS OF THE DELIVERY OF THESE DEVELOPED, HIGH QUALITY,
UNIFORM, PORTABLE STANDARDIZED HEALTH INSURANCE POLICIES TO ALL CITIZENS
OF  THE STATE OF NEW YORK, THE NEW YORK STATE HEALTH INSURANCE AUTHORITY
SHALL DEVELOP AND DESIGN A STANDARDIZED SCHEDULE OF REIMBURSEMENT  PRAC-
TICES AND FORMS TO BE USED BY ALL HEALTH CARE AND NURSING HOME PROVIDERS

A. 3535                             3

IN  THE  STATE. SUCH PROCEDURES SHALL SEEK TO REDUCE PAPERWORK, ADMINIS-
TRATION AND PROCESSING TIME, AND TO INCREASE  EFFICIENCY  AND  SPEED  OF
PROCESSING BY BOTH THE INSURERS AND THE HEALTH CARE PROVIDERS.
  IN  ORDER TO DELIVER AND PROVIDE THE DESIGNATED HIGH QUALITY, UNIFORM,
PORTABLE HEALTH INSURANCE COVERAGE TO EVERY CITIZEN OF THE STATE OF  NEW
YORK,  THE  LEGISLATURE HEREBY FURTHER FINDS AND DETERMINES THAT THE NEW
YORK STATE HEALTH INSURANCE  AUTHORITY  SHALL  SOLICIT  OPEN  BIDS  FROM
PRIVATE INSURANCE COMPANIES, FOR THE PURCHASE OF SUCH STANDARDIZED POLI-
CIES,  AND  THAT  SUCH  PRIVATE  COMPANIES, SUBJECT TO THE DESIGN OF THE
STANDARDIZED POLICY, SHALL BE THE UNDERWRITERS  AND  PROVIDERS  OF  SUCH
HEALTH  INSURANCE COVERAGE TO THE CITIZENS OF THE STATE OF NEW YORK. THE
NEW YORK STATE HEALTH INSURANCE AUTHORITY MAY ACCEPT MULTIPLE BIDS  FROM
MULTIPLE INSURERS IN MULTIPLE REGIONS, PURCHASING POLICIES FOR THE CITI-
ZENS  OF  THOSE  REGIONS,  SO  LONG AS THE INSURERS PROVIDE THE COVERAGE
PURSUANT TO THE DESIGNED REQUIREMENTS OF THE STANDARDIZED POLICY.
  S 2489-C. NEW YORK STATE HEALTH INSURANCE AUTHORITY. 1. THE  NEW  YORK
STATE  HEALTH  INSURANCE  AUTHORITY. THE NEW YORK STATE HEALTH INSURANCE
AUTHORITY IS HEREBY CREATED. SUCH AUTHORITY SHALL BE  A  BODY  CORPORATE
AND  POLITIC  CONSTITUTING  A  PUBLIC BENEFIT CORPORATION. THE GOVERNING
BODY OF THE AUTHORITY SHALL BE A BOARD. THE AUTHORITY SHALL  CONSIST  OF
SEVENTEEN  MEMBERS WHO ARE RESIDENTS OF THE STATE OF NEW YORK, APPOINTED
BY THE GOVERNOR AS FOLLOWS:
  (A) THE SUPERINTENDENT OF INSURANCE;
  (B) THE COMMISSIONER OF LABOR;
  (C) THE COMMISSIONER OF HEALTH;
  (D) THE DIRECTOR OF THE GOVERNOR'S OFFICE OF REGULATORY REFORM;
  (E) THE DIRECTOR OF THE GOVERNOR'S OFFICE OF EMPLOYEE RELATIONS;
  (F) TWO MEMBERS UPON RECOMMENDATION OF THE TEMPORARY PRESIDENT OF  THE
SENATE;
  (G) TWO MEMBERS UPON RECOMMENDATION OF THE SPEAKER OF THE ASSEMBLY;
  (H) ONE MEMBER UPON RECOMMENDATION OF THE SENATE MINORITY LEADER;
  (I) ONE MEMBER UPON RECOMMENDATION OF THE ASSEMBLY MINORITY LEADER;
  (J) TWO MEMBERS WITH EXPERIENCE IN THE INSURANCE INDUSTRY;
  (K) TWO MEMBERS WHO ARE A PRACTICING PHYSICIAN, NURSE, CHIROPRACTOR OR
OTHER HEALTH CARE SPECIALIST;
  (L) ONE MEMBER WHO IS AFFILIATED WITH ORGANIZED LABOR; AND
  (M) ONE MEMBER WHO IS AFFILIATED WITH SMALL BUSINESS ORGANIZATION.
  2.  BOARD  MEMBERS.  ALL MEMBERS SHALL SERVE FOR A TERM OF FIVE YEARS,
WITH EACH TERM COMMENCING FROM THE FIRST DAY OF JANUARY NEXT  SUCCEEDING
THEIR  APPOINTMENT. EACH MEMBER, UNLESS REMOVED FOR GOOD CAUSE BY A TWO-
THIRDS VOTE OF THE SENATE, SHALL HOLD OFFICE UNTIL A SUCCESSOR HAS  BEEN
APPOINTED AND QUALIFIED.
  3.  CHAIR  AND VICE CHAIR OF THE BOARD. A MEMBER OF THE BOARD SHALL BE
DESIGNATED AS CHAIR BY THE GOVERNOR, UPON  ADVICE  AND  CONSENT  OF  THE
SENATE, AND SHALL BE CHAIR OF SUCH BOARD UNTIL HIS OR HER TERM AS MEMBER
EXPIRES.    THE  SUPERINTENDENT OF INSURANCE, THE COMMISSIONER OF LABOR,
THE COMMISSIONER OF HEALTH, THE DIRECTOR OF  THE  GOVERNOR'S  OFFICE  OF
REGULATORY REFORM, AND THE DIRECTOR OF THE GOVERNOR'S OFFICE OF EMPLOYEE
RELATIONS SHALL BE INELIGIBLE TO SERVE AS CHAIR OF THE BOARD. THE GOVER-
NOR  SHALL  ALSO  DESIGNATE,  UPON  ADVICE  AND CONSENT OF THE SENATE, A
MEMBER OF THE BOARD, WHO IS ELIGIBLE TO SERVE  AS  CHAIR,  TO  SERVE  AS
VICE-CHAIR OF THE BOARD UNTIL HIS OR HER TERM AS MEMBER EXPIRES.
  4. EXECUTIVE DIRECTOR. THE CHAIR OF THE BOARD SHALL BE THE CHIEF EXEC-
UTIVE  OFFICER  OF  THE AUTHORITY AND SHALL BE PRIMARILY RESPONSIBLE FOR
THE DISCHARGE OF ITS ADMINISTRATIVE FUNCTIONS. THE CHAIR MAY APPOINT  AN
EXECUTIVE  DIRECTOR  OF  THE  AUTHORITY,  UPON ADVICE AND CONSENT OF THE

A. 3535                             4

BOARD, TO WHICH SUCH ADMINISTRATIVE  FUNCTIONS  MAY  BE  DELEGATED.  THE
EXECUTIVE  DIRECTOR SHALL BE DEEMED AN EMPLOYEE OF THE AUTHORITY, AND AS
SUCH BE AN EXEMPT, MANAGEMENT CONFIDENTIAL EMPLOYEE,  WHO  IS  A  PUBLIC
OFFICER  AND ENTITLED TO AN ANNUAL SALARY AND BENEFITS AS ESTABLISHED BY
THE AUTHORITY BOARD.
  5. POWER OF THE AUTHORITY. THE POWER  OF  SUCH  CORPORATION  SHALL  BE
VESTED  IN AND EXERCISED BY THE BOARD. SUCH BOARD MAY DELEGATE TO ONE OR
MORE OF ITS MEMBERS OR ITS OFFICERS, AGENTS AND  EMPLOYEES  SUCH  POWERS
AND DUTIES AS IT MAY DEEM PROPER. SUCH BOARD AND ITS CORPORATE EXISTENCE
SHALL  CONTINUE UNTIL ITS EXISTENCE SHALL BE TERMINATED BY LAW. UPON THE
TERMINATION OF THE EXISTENCE OF THE AUTHORITY, ALL ITS RIGHTS AND  PROP-
ERTIES  SHALL  PASS  TO  AND  BE  VESTED  IN THE STATE OF NEW YORK. NINE
MEMBERS OF THE BOARD SHALL CONSTITUTE A QUORUM FOR  THE  TRANSACTION  OF
BUSINESS.  A MAJORITY OF THE MEMBERS OF THE BOARD PRESENT AT ANY MEETING
AT WHICH A QUORUM SHALL BE PRESENT, SHALL  BE  SUFFICIENT  TO  PASS  ANY
RESOLUTION, EXCEPT AS OTHERWISE SPECIFIED IN THIS TITLE.
  ALL  PROPOSITIONS  REQUIRING  THE  EXPENDITURE  OF  MONEY OR AFFECTING
CONTRACT RIGHTS OR PROPERTY, SHALL BE PRESENTED TO THE BOARD IN WRITING.
NO RESOLUTION  CONTAINING  SUCH  A  PROPOSITION  SHALL  PASS  UNLESS  IT
RECEIVES  APPROVAL  OF  AT LEAST NINE BOARD MEMBERS IN OFFICE. THE BOARD
SHALL HOLD AT LEAST ONE REGULAR MEETING EVERY MONTH.  THE CHAIR,  OR  IN
HIS  OR  HER  ABSENCE  THE  VICE  CHAIR,  OR ANY SIX MEMBERS, MAY CALL A
SPECIAL MEETING BY NOTICE AS SPECIFIED BY THE BOARD. ALL MEETINGS OF THE
BOARD SHALL BE SUBJECT TO ARTICLE SEVEN OF THE PUBLIC OFFICERS LAW.
  6. COMPENSATION OF MEMBERS OF THE BOARD.  MEMBERS OF THE  BOARD  SHALL
BE ENTITLED TO NO COMPENSATION FOR THEIR SERVICES, BUT SHALL BE ENTITLED
TO REIMBURSEMENT FOR THEIR ACTUAL AND NECESSARY EXPENSES INCURRED IN THE
PERFORMANCE OF THEIR OFFICIAL DUTIES.
  NOTWITHSTANDING  ANY INCONSISTENT PROVISION OF ANY GENERAL, SPECIAL OR
LOCAL LAW, NO OFFICER OR EMPLOYEE OF THE STATE, OR OF ANY  MUNICIPALITY,
AS  DEFINED  IN THE PUBLIC OFFICERS LAW, THE COUNTY LAW OR THE TOWN LAW,
SHALL BE DEEMED TO HAVE FORFEITED OR SHALL FORFEIT  HIS  OR  HER  PUBLIC
OFFICE OR ANY BENEFITS PROVIDED UNDER THE RETIREMENT AND SOCIAL SECURITY
LAW OR UNDER ANY PUBLIC RETIREMENT SYSTEM MAINTAINED BY THE STATE OR ANY
OF  ITS SUBDIVISIONS BY REASON OF HIS OR HER ACCEPTANCE OF MEMBERSHIP ON
OR CHAIRMANSHIP OR VICE CHAIRMANSHIP OF THE AUTHORITY; PROVIDED,  HOWEV-
ER,  A  MEMBER WHO HOLDS SUCH OTHER PUBLIC OFFICE SHALL RECEIVE NO ADDI-
TIONAL COMPENSATION FOR SERVICES RENDERED PURSUANT TO  THIS  TITLE,  BUT
SHALL  BE  ENTITLED  TO  REIMBURSEMENT FOR ACTUAL AND NECESSARY EXPENSES
INCURRED IN THE PERFORMANCE OF SUCH SERVICES.
  SUBJECT TO THE PROVISIONS OF THIS TITLE, MEMBERS OF THE AUTHORITY  MAY
ENGAGE IN PRIVATE EMPLOYMENT, OR IN A PROFESSION OR BUSINESS.
  7.  OFFICES  OF  THE  AUTHORITY. THE PRINCIPAL OFFICE OF THE AUTHORITY
SHALL BE LOCATED IN THE CITY OF ALBANY.
  8. AUDITS OF THE  AUTHORITY.  THE  COMPTROLLER  MAY  CONDUCT  PERIODIC
FINANCIAL  AUDITS OF THE AUTHORITY AND REPORT THE RESULTS OF SUCH AUDITS
TO THE GOVERNOR, THE CHAIR OF THE  SENATE  FINANCE  COMMITTEE,  AND  THE
CHAIR OF THE ASSEMBLY WAYS AND MEANS COMMITTEE.
  S 2489-D. GENERAL PURPOSES AND POWERS OF THE AUTHORITY. 1. THE GENERAL
PURPOSES OF THE AUTHORITY SHALL BE TO:
  (A) DEVELOP A NEW MECHANISM TO EFFECTIVELY AND EFFICIENTLY DELIVER AND
PROVIDE  HIGH QUALITY, PORTABLE HEALTH INSURANCE COVERAGE TO EVERY CITI-
ZEN IN NEW YORK STATE. IN SO DOING THE AUTHORITY SHALL SEEK TO:
  (I) REPLACE THE STATE'S CURRENT MATRIX MEDICAID AND EMPLOYER AND INDI-
VIDUAL PROVIDED HEALTH INSURANCE SYSTEM;

A. 3535                             5

  (II) REMOVE THE HEAVY BURDEN THAT  THE  CURRENT  MATRIX  MEDICAID  AND
EMPLOYER  AND  INDIVIDUAL  PROVIDED  HEALTH INSURANCE SYSTEM NOW IMPOSES
UPON THE STATE'S BUSINESSES, CITIZENS AND TAXPAYERS;
  (III) IMPROVE THE STATE'S BUSINESS AND ECONOMIC CLIMATE;
  (IV) IMPROVE THE HEALTH CARE OF ALL THE STATE'S CITIZENS; AND
  (V)  ASSURE  THE EFFICIENT, LOW COST, EFFECTIVE DELIVERY AND PROVISION
OF HIGH QUALITY, PORTABLE, HEALTH INSURANCE COVERAGE FOR  EVERY  CITIZEN
OF NEW YORK; AND
  (B) DEVELOP AND DESIGN A STANDARDIZED, HIGH QUALITY, UNIFORM, PORTABLE
HEALTH  INSURANCE  POLICY,  WHICH THE AUTHORITY CAN PURCHASE AND PROVIDE
FOR EVERY CITIZEN OF THE STATE OF NEW YORK WITHOUT DIRECT CHARGE TO  THE
CITIZEN. IN SO DOING THE AUTHORITY SHALL SEEK TO:
  (I)  ASSURE  THAT SUCH STANDARDIZED, DESIGNED HEALTH INSURANCE POLICY,
TO BE DELIVERED AND PROVIDED TO EVERY CITIZEN, CONTAINS ALL THE COVERAGE
REQUIREMENTS FOR LARGE GROUP HEALTH INSURANCE POLICIES SET FORTH BY  THE
INSURANCE  LAW,  TOGETHER  WITH LONG TERM CARE COVERAGE FOR NURSING HOME
CARE;
  (II) USE ECONOMIES OF SCALE TO PURCHASE  SUCH  STANDARDIZED,  DESIGNED
HEALTH  INSURANCE  POLICIES FROM THE PRIVATE MARKET FOR EVERY CITIZEN OF
THE STATE OF NEW YORK;
  (III) USE THE BENEFITS OF CAPITALISM TO PROMOTE COMPETITION  FOR  HIGH
QUALITY, LOW COST AND PORTABLE HEALTH INSURANCE COVERAGE; AND
  (IV) TAKE ADVANTAGE OF THE COMPETITION IN THE PRIVATE MARKETPLACE; AND
  (C)  DEVELOP AND DESIGN A STANDARDIZED SCHEDULE OF REIMBURSEMENT PRAC-
TICES AND FORMS TO BE USED BY ALL HEALTH CARE AND NURSING HOME PROVIDERS
IN THE STATE. IN SO DOING THE AUTHORITY SHALL SEEK TO:
  (I) MAXIMIZE THE COST EFFECTIVENESS OF THE DELIVERY AND  PROVISION  OF
STANDARDIZED HEALTH INSURANCE POLICIES TO ALL CITIZENS; AND
  (II) REDUCE PAPERWORK, ADMINISTRATION AND PROCESSING TIME, TO INCREASE
EFFICIENCY  AND SPEED OF PROCESSING, BY BOTH THE INSURERS AND THE HEALTH
CARE PROVIDERS; AND
  (D) RECEIVE STATE DIRECTED FEDERAL MEDICAID FUNDS AND DEDICATED  STATE
TAX  REVENUES  FROM APPROPRIATIONS IN ORDER TO PROVIDE THE FINANCING FOR
THE PURCHASE, DELIVERY AND PROVISION OF SUCH HEALTH INSURANCE  AND  LONG
TERM  CARE POLICY BENEFITS TO ALL THE CITIZENS OF THE STATE OF NEW YORK;
AND
  (E) DELIVER AND PROVIDE  THE  DESIGNED,  STANDARDIZED,  HIGH  QUALITY,
UNIFORM,  PORTABLE  HEALTH  INSURANCE  COVERAGE  TO EVERY CITIZEN OF THE
STATE OF NEW YORK, BY MEANS OF PURCHASED POLICIES FROM PRIVATE INSURANCE
COMPANIES, PURSUANT TO THE SOLICITATION OF OPEN BIDS  FROM  SUCH  COMPA-
NIES. PURSUANT TO SUCH PURCHASES, SUCH COMPANIES SHALL BE THE UNDERWRIT-
ERS  AND  PROVIDERS OF SUCH HEALTH INSURANCE COVERAGE TO THE CITIZENS OF
THE STATE OF NEW YORK. IN MAKING SUCH  PURCHASES,  THE  NEW  YORK  STATE
HEALTH INSURANCE AUTHORITY MAY ACCEPT MULTIPLE BIDS FROM MULTIPLE INSUR-
ERS  IN  MULTIPLE REGIONS, PURCHASING POLICIES FOR THE CITIZENS OF THOSE
REGIONS, SO LONG AS THE INSURERS SO AWARDED THE BIDS PROVIDE THE  COVER-
AGE PURSUANT TO THE DESIGNED REQUIREMENTS OF THE STANDARDIZED POLICY.
  2. TO CARRY OUT SUCH PURPOSES THE AUTHORITY SHALL HAVE THE POWER:
  (A) TO SUE AND BE SUED;
  (B) TO ACQUIRE, HOLD AND DISPOSE OF REAL AND PERSONAL PROPERTY FOR ITS
CORPORATE PURPOSES;
  (C) TO HAVE A SEAL AND ALTER THE SAME AT PLEASURE;
  (D)  TO BORROW MONEY AND ISSUE BONDS FOR ANY OF ITS CORPORATE PURPOSES
OR ITS PROJECTS, OR TO REFUND THE SAME, AND TO PROVIDE FOR THE RIGHTS OF
THE HOLDERS THEREOF;

A. 3535                             6

  (E) TO MAKE BY-LAWS FOR THE MANAGEMENT AND REGULATION OF  ITS  AFFAIRS
SUBJECT TO AGREEMENTS WITH BONDHOLDERS;
  (F)  TO  APPOINT OFFICERS, AGENTS AND EMPLOYEES; AND TO DESCRIBE THEIR
QUALIFICATIONS AND FIX THEIR  COMPENSATION;  SUBJECT,  HOWEVER,  TO  THE
PROVISIONS OF THE CIVIL SERVICE LAW AS PROVIDED IN THIS TITLE;
  (G)  TO  MAKE  CONTRACTS  AND  LEASES,  AND TO EXECUTE ALL INSTRUMENTS
NECESSARY OR CONVENIENT;
  (H) TO COLLECT REVENUES, DUES, COSTS, ASSESSMENTS, RENTALS,  FEES  AND
OTHER CHARGES FOR THE USE OF REAL OR PERSONAL PROPERTY AND/OR FACILITIES
OF  THE AUTHORITY SUBJECT TO AND IN ACCORDANCE WITH SUCH AGREEMENTS WITH
BONDHOLDERS AS MAY BE PROVIDED IN THIS TITLE;
  (I) TO CONTRACT FOR THE SERVICES OF INSURANCE COMPANIES,  HEALTH  CARE
PROFESSIONALS,  ARCHITECTS,  ENGINEERS,  CONSULTANTS, LAWYERS, FINANCIAL
AND  OTHER  PROFESSIONAL  ADVISORS,  DEVELOPERS,  CONTRACTORS,  VENDORS,
CONCESSIONERS,  TENANTS, FACILITY AND/OR MANAGERS AND OTHER PROFESSIONAL
CONSULTANTS AND SERVICE PROVIDERS, AND TO FIX THEIR COMPENSATION;
  (J) TO DEVELOP AND DESIGN A STANDARDIZED, HIGH QUALITY, UNIFORM, PORT-
ABLE HEALTH INSURANCE POLICY, WHICH THE AUTHORITY CAN PURCHASE FOR EVERY
CITIZEN OF THE STATE OF  NEW  YORK,  WHICH  CONTAINS  ALL  THE  COVERAGE
REQUIREMENTS  FOR LARGE GROUP HEALTH INSURANCE POLICIES CONTAINED WITHIN
THE INSURANCE LAW, TOGETHER WITH LONG TERM  CARE  COVERAGE  FOR  NURSING
HOME CARE;
  (K) TO SEEK AND REQUEST MEDICAID FUNDING REIMBURSEMENT FROM THE FEDER-
AL GOVERNMENT FOR THE PURCHASE OF STANDARDIZED HEALTH INSURANCE AND LONG
TERM CARE COVERAGE FOR EVERY CITIZEN OF THE STATE OF NEW YORK;
  (L)  TO  DEVELOP  AND  DESIGN A STANDARDIZED SCHEDULE OF REIMBURSEMENT
PRACTICES AND FORMS TO BE USED BY  ALL  HEALTH  CARE  AND  NURSING  HOME
PROVIDERS IN THE STATE;
  (M) TO MAXIMIZE THE COST EFFECTIVENESS OF THE DELIVERY OF STANDARDIZED
HEALTH INSURANCE POLICIES TO ALL CITIZENS;
  (N) TO REDUCE PAPERWORK, ADMINISTRATION AND PROCESSING TIME;
  (O) TO INCREASE EFFICIENCY AND SPEED OF PROCESSING INSURANCE CLAIMS BY
BOTH THE INSURERS AND THE HEALTH CARE PROVIDERS;
  (P)  TO SOLICIT OPEN BIDS FROM PRIVATE INSURANCE COMPANIES, SUBJECT TO
THE  DESIGN  OF  THE  STANDARDIZED  POLICY,  FOR  THE  UNDERWRITING  AND
PROVISION  OF  HEALTH INSURANCE COVERAGE TO ALL CITIZENS OF THE STATE OF
NEW YORK;
  (Q) TO ACCEPT BIDS FROM MULTIPLE INSURERS IN MULTIPLE REGIONS, SO LONG
AS THE INSURERS PROVIDE THE REQUIRED STANDARDIZED HEALTH  INSURANCE  AND
LONG  TERM CARE COVERAGE PURSUANT TO THE DESIGNED POLICY REQUIREMENTS OF
THE AUTHORITY;
  (R) TO PURCHASE THE DEVELOPED AND DESIGNED STANDARDIZED, HIGH  QUALITY
UNIFORM, PORTABLE HEALTH INSURANCE POLICY, WHICH CONTAINS ALL THE COVER-
AGE  REQUIREMENTS  FOR  LARGE  GROUP HEALTH INSURANCE POLICIES CONTAINED
WITHIN THE INSURANCE LAW, TOGETHER WITH  LONG  TERM  CARE  COVERAGE  FOR
NURSING HOME CARE, FOR EVERY CITIZEN OF THE STATE OF NEW YORK;
  (S) TO DESIGNATE THE DEPOSITORIES OF ITS MONEY;
  (T) TO ESTABLISH ITS FISCAL YEAR;
  (U)  TO  APPOINT  SUCH OFFICERS, EMPLOYEES AND AGENTS AS THE AUTHORITY
MAY REQUIRE FOR THE PERFORMANCE OF ITS DUTIES AND TO FIX  AND  DETERMINE
THEIR QUALIFICATIONS, DUTIES, AND COMPENSATION SUBJECT TO THE PROVISIONS
OF THE CIVIL SERVICE LAW AND ANY APPLICABLE COLLECTIVE BARGAINING AGREE-
MENT,  AND  TO RETAIN OR EMPLOY COUNSEL, AUDITORS, ENGINEERS AND PRIVATE
CONSULTANTS ON A CONTRACT BASIS OR OTHERWISE FOR RENDERING PROFESSIONAL,
MANAGEMENT OR TECHNICAL SERVICES AND ADVICE;

A. 3535                             7

  (V) TO RECEIVE AND CONSIDER REPORTS AND RECOMMENDATIONS FROM ANY ADVI-
SORY COUNCILS OR BOARDS AS MAY BE ESTABLISHED; AND
  (W)  TO  DO  ALL  THINGS NECESSARY, CONVENIENT OR DESIRABLE, INCLUDING
ANCILLARY AND INCIDENTAL ACTIVITIES, TO CARRY OUT ITS PURPOSES  AND  FOR
THE EXERCISE OF THE POWERS GRANTED IN THIS TITLE.
  S  2489-E.  REPORT  AND  RECOMMENDATIONS  OF THE NEW YORK STATE HEALTH
INSURANCE AUTHORITY. ON OR BEFORE MARCH THIRTY-FIRST, TWO THOUSAND  TEN,
THE  AUTHORITY BOARD SHALL PREPARE AND PRODUCE A REPORT WITH RECOMMENDA-
TIONS TO THE GOVERNOR, THE TEMPORARY PRESIDENT OF THE SENATE, THE SPEAK-
ER OF THE ASSEMBLY, AND THE CHAIRS OF THE SENATE AND  ASSEMBLY  STANDING
COMMITTEES ON CORPORATIONS, AUTHORITIES AND COMMISSIONS.
  THE  REPORT  WITH RECOMMENDATIONS SHALL INVESTIGATE, EXAMINE AND OFFER
PROPOSED SOLUTIONS, CONSISTENT WITH THE PROVISIONS OF THIS TITLE, ON ALL
TOPICS THAT THE BOARD DEEMS IMPORTANT TO THE SUCCESSFUL FUTURE OPERATION
OF THE AUTHORITY IN  THE  EXECUTION  OF  ITS  PURPOSES  AND  MISSION  AS
DESCRIBED  IN  THIS  TITLE,  INCLUDING BUT NOT LIMITED TO, THE FOLLOWING
ISSUES:
  1. THE DEVELOPMENT OF A NEW MECHANISM TO EFFECTIVELY  AND  EFFICIENTLY
DELIVER  AND PROVIDE HIGH QUALITY, PORTABLE HEALTH INSURANCE COVERAGE TO
EVERY CITIZEN IN NEW YORK STATE;
  2. THE REPLACEMENT OF THE STATE'S CURRENT MATRIX MEDICAID AND EMPLOYER
AND INDIVIDUAL PROVIDED HEALTH INSURANCE SYSTEM WITH THE NEW SYSTEM  SET
FORTH UNDER THIS TITLE;
  3. STRATEGIES FOR OBTAINING AND EXPANDING THE RECEIPT OF FEDERAL MEDI-
CAID AND MEDICARE REVENUES INTO THE AUTHORITY FOR THE PURPOSE OF PROVID-
ING REVENUE FOR THE PURCHASE OF THE HIGH QUALITY, PORTABLE HEALTH INSUR-
ANCE  COVERAGE  FOR  EVERY  CITIZEN  IN  NEW  YORK STATE THAT THIS TITLE
REQUIRES THE AUTHORITY TO PERFORM;
  4. PROJECTIONS AND DETAILED EXPLANATIONS OF  THE  COSTS,  EXPENDITURES
AND  REVENUES  THAT  WILL  BE  NECESSARY  TO  IMPLEMENT THE PURPOSES AND
MISSION OF THIS TITLE, TOGETHER WITH AN EXAMINATION AND  IMPACT  ASSESS-
MENT OF THE POSSIBLE REVENUE SOURCES NECESSARY TO IMPLEMENT THE PURPOSES
AND MISSION OF THIS TITLE;
  5.  AN  EXAMINATION AND ANALYSIS OF THE EFFECTS AND MEASURES NECESSARY
TO REMOVE THE HEAVY BURDEN THAT THE CURRENT MATRIX MEDICAID AND EMPLOYER
AND INDIVIDUAL PROVIDED HEALTH INSURANCE SYSTEM  NOW  IMPOSES  UPON  THE
STATE'S BUSINESSES, CITIZENS AND TAXPAYERS;
  6.  AN EXAMINATION AND ANALYSIS ON HOW TO IMPROVE THE STATE'S BUSINESS
AND ECONOMIC CLIMATE, AND WHAT  IMPACT  AND  EFFECTS  THE  ESTABLISHMENT
WOULD HAVE UPON SUCH CLIMATE;
  7.  AN  EXAMINATION  AND ANALYSIS ON HOW TO IMPROVE THE HEALTH CARE OF
ALL THE STATE'S CITIZENS;
  8. AN EXAMINATION AND ANALYSIS ON THE BEST PRACTICES AND PROCEDURES TO
ASSURE THE EFFICIENT, LOW COST, EFFECTIVE DELIVERY AND PROVISION OF HIGH
QUALITY, PORTABLE, HEALTH INSURANCE COVERAGE FOR EVERY  CITIZEN  OF  NEW
YORK, CONSISTENT WITH THE PROVISIONS OF THIS TITLE;
  9.  AN  EXAMINATION  AND  ANALYSIS  OF THE DEVELOPMENT AND DESIGN OF A
STANDARDIZED, HIGH QUALITY, UNIFORM, PORTABLE HEALTH  INSURANCE  POLICY,
WHICH  CONTAINS  ALL  THE  COVERAGE  REQUIREMENTS FOR LARGE GROUP HEALTH
INSURANCE POLICIES SET FORTH BY THE INSURANCE LAW,  TOGETHER  WITH  LONG
TERM  CARE  COVERAGE  FOR  NURSING  HOME  CARE,  WHICH THE AUTHORITY CAN
PURCHASE FROM PRIVATE INSURANCE COMPANIES, AND PROVIDE TO EVERY  CITIZEN
OF THE STATE OF NEW YORK WITHOUT DIRECT CHARGE TO THE CITIZEN;
  10.  AN  EXAMINATION AND ANALYSIS ON THE BEST PRACTICES AND PROCEDURES
TO ASSURE THAT SUCH STANDARDIZED, DESIGNED HEALTH INSURANCE POLICY, WILL

A. 3535                             8

BE DELIVERED AND PROVIDED TO EVERY CITIZEN WITHOUT DIRECT CHARGE TO  THE
CITIZEN;
  11.  AN  EXAMINATION AND ANALYSIS ON THE BEST PRACTICES AND PROCEDURES
TO USE AND DEPLOY ECONOMIES OF  SCALE  TO  PURCHASE  SUCH  STANDARDIZED,
DESIGNED  HEALTH  INSURANCE  POLICIES  FROM THE PRIVATE MARKET FOR EVERY
CITIZEN OF THE STATE OF NEW YORK;
  12. AN EXAMINATION AND ANALYSIS ON THE BEST PRACTICES  AND  PROCEDURES
TO  USE  AND DEPLOY THE BENEFITS OF CAPITALISM SO AS TO PROMOTE COMPETI-
TION FOR HIGH QUALITY, LOW COST AND PORTABLE HEALTH INSURANCE COVERAGE;
  13. AN EXAMINATION AND ANALYSIS ON THE BEST PRACTICES  AND  PROCEDURES
TO  USE  AND  DEPLOY TO TAKE ADVANTAGE OF THE COMPETITION IN THE PRIVATE
MARKETPLACE;
  14. AN EXAMINATION AND ANALYSIS ON THE BEST PRACTICES  AND  PROCEDURES
TO DEVELOP AND DESIGN A STANDARDIZED SCHEDULE OF REIMBURSEMENT PRACTICES
AND  FORMS  TO  BE USED BY ALL HEALTH CARE AND NURSING HOME PROVIDERS IN
THE STATE;
  15. AN EXAMINATION AND ANALYSIS ON THE BEST PRACTICES  AND  PROCEDURES
TO  MAXIMIZE  THE  COST  EFFECTIVENESS  OF THE DELIVERY AND PROVISION OF
STANDARDIZED HEALTH INSURANCE POLICIES TO ALL CITIZENS OF THE  STATE  OF
NEW YORK;
  16.  AN  EXAMINATION AND ANALYSIS ON THE BEST PRACTICES AND PROCEDURES
TO REDUCE PAPERWORK, ADMINISTRATION AND PROCESSING TIME, AND TO INCREASE
EFFICIENCY AND SPEED OF PROCESSING, BY BOTH THE INSURERS AND THE  HEALTH
CARE PROVIDERS;
  17.  AN  EXAMINATION AND ANALYSIS ON THE BEST PRACTICES AND PROCEDURES
TO RECEIVE STATE DIRECTED FEDERAL MEDICAID FUNDS AND DEDICATED STATE TAX
REVENUES FROM APPROPRIATIONS IN ORDER TO PROVIDE THE FINANCING  FOR  THE
PURCHASE,  DELIVERY AND PROVISION OF SUCH HEALTH INSURANCE AND LONG TERM
CARE POLICY BENEFITS TO ALL THE CITIZENS OF THE STATE OF NEW YORK;
  18. AN EXAMINATION AND ANALYSIS ON THE BEST PRACTICES  AND  PROCEDURES
TO  DELIVER  AND  PROVIDE  THE  DESIGNED,  STANDARDIZED,  HIGH  QUALITY,
UNIFORM, PORTABLE HEALTH INSURANCE COVERAGE  TO  EVERY  CITIZEN  OF  THE
STATE OF NEW YORK, BY MEANS OF PURCHASED POLICIES FROM PRIVATE INSURANCE
COMPANIES,  PURSUANT  TO  THE SOLICITATION OF OPEN BIDS FROM SUCH COMPA-
NIES;
  19. AN EXAMINATION AND ANALYSIS ON THE BEST PRACTICES  AND  PROCEDURES
TO  HAVE, PURSUANT TO SUCH PURCHASES, SUCH COMPANIES BE THE UNDERWRITERS
AND PROVIDERS OF SUCH HEALTH INSURANCE COVERAGE TO THE CITIZENS  OF  THE
STATE OF NEW YORK;
  20.  AN  EXAMINATION AND ANALYSIS ON THE BEST PRACTICES AND PROCEDURES
TO ACCESS AND ACCEPT MULTIPLE BIDS FROM MULTIPLE  INSURERS  IN  MULTIPLE
REGIONS,  IN  PURCHASING  POLICIES FOR THE CITIZENS OF THOSE REGIONS, SO
LONG AS THE INSURERS SO AWARDED THE BIDS PROVIDE THE  COVERAGE  PURSUANT
TO THE DESIGNED REQUIREMENTS OF THE STANDARDIZED POLICY;
  21.  AN  EXAMINATION AND ANALYSIS ON THE BEST PRACTICES AND PROCEDURES
TO OPERATE THE AUTHORITY IN ORDER TO BEST ACHIEVE THE  INTENT,  PURPOSES
AND MISSION OF THIS TITLE.
  S 2. This act shall take effect immediately.