S T A T E O F N E W Y O R K
________________________________________________________________________
6810
2011-2012 Regular Sessions
I N A S S E M B L Y
March 31, 2011
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Introduced by M. of A. COOK, GOTTFRIED, CYMBROWITZ, PHEFFER -- Multi-
Sponsored by -- M. of A. BRENNAN, GLICK, HOOPER, JACOBS, McENENY,
PEOPLES-STOKES, SWEENEY, WEINSTEIN, WEISENBERG -- read once and
referred to the Committee on Mental Health
AN ACT to amend the insurance law, in relation to providing disclosure
to medicare supplemental insurance policy holders regarding the rights
of such holders at the time of a rate change
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 3218-a
to read as follows:
S 3218-A. REQUIRED DISCLOSURE TO MEDICARE SUPPLEMENTAL INSURANCE POLI-
CY HOLDERS. (A) EVERY INSURER OFFERING A RENEWAL OF A CONTRACT TO A
CLOSED BLOCK MEMBER, OR NOTIFYING SUCH CLOSED BLOCK MEMBER OF A PROPOSED
OR APPROVED CHANGE IN THE PREMIUMS OR THE BENEFITS UNDER SUCH CONTRACT,
SHALL NOTIFY SUCH MEMBER IN WRITING, IN A FORM APPROVED BY THE SUPER-
INTENDENT, OF: (1) THE ABILITY OF SUCH MEMBER TO PURCHASE A DIFFERENT
POLICY WITHOUT UNDERGOING A PRE-EXISTING CONDITION WAITING PERIOD
PROVIDING THERE WAS CONTINUOUS COVERAGE THE PREVIOUS SIX MONTHS; AND (2)
THE AVAILABILITY OF ANY POLICY OR CONTRACT OFFERED BY SUCH INSURER
PROVIDING SIMILAR BENEFITS AT A LOWER PREMIUM, AND A TOLL-FREE TELEPHONE
NUMBER AND INTERNET WEBSITE WHERE SUCH MEMBER MAY FIND INFORMATION
REGARDING POLICIES PROVIDING SIMILAR BENEFITS OFFERED BY ANOTHER INSUR-
ER, A CORPORATION ORGANIZED PURSUANT TO ARTICLE FORTY-THREE OF THIS
CHAPTER, OR AN ORGANIZATION CERTIFIED PURSUANT TO ARTICLE FORTY-FOUR OF
THE PUBLIC HEALTH LAW.
(B) FOR THE PURPOSES OF THIS SECTION, "CLOSED BLOCK MEMBER" SHALL MEAN
THE HOLDER OF A CONTRACT OF MEDICARE SUPPLEMENTAL INSURANCE ISSUED BY AN
INSURER PURSUANT TO A FORM FOR WHICH SUCH INSURER NO LONGER SOLICITS OR
ACCEPTS NEW POLICYHOLDERS, BUT CONTINUES TO OFFER RENEWAL CONTRACTS TO
EXISTING POLICYHOLDERS UNDER SUCH FORM.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD02345-01-1
A. 6810 2
S 2. The insurance law is amended by adding a new section 4328 to read
as follows:
S 4328. REQUIRED DISCLOSURE TO MEDICARE SUPPLEMENTAL INSURANCE POLICY
HOLDERS. (A) EVERY CORPORATION OFFERING A RENEWAL OF A CONTRACT TO A
CLOSED BLOCK MEMBER, OR NOTIFYING SUCH CLOSED BLOCK MEMBER OF A PROPOSED
OR APPROVED CHANGE IN THE PREMIUMS OR THE BENEFITS UNDER SUCH CONTRACT,
SHALL NOTIFY SUCH MEMBER IN WRITING, IN A FORM APPROVED BY THE SUPER-
INTENDENT, OF: (1) THE ABILITY OF SUCH MEMBER TO PURCHASE A DIFFERENT
CONTRACT WITHOUT UNDERGOING A PRE-EXISTING CONDITION WAITING PERIOD
PROVIDING THERE WAS CONTINUOUS COVERAGE THE PREVIOUS SIX MONTHS; AND (2)
THE AVAILABILITY OF ANY POLICY OR CONTRACT OFFERED BY SUCH CORPORATION
PROVIDING SIMILAR BENEFITS AT A LOWER PREMIUM, AND A TOLL-FREE TELEPHONE
NUMBER AND INTERNET WEBSITE WHERE SUCH MEMBER MAY FIND INFORMATION
REGARDING CONTRACTS PROVIDING SIMILAR BENEFITS OFFERED BY ANOTHER INSUR-
ER, A CORPORATION ORGANIZED PURSUANT TO THIS ARTICLE, OR AN ORGANIZATION
CERTIFIED PURSUANT TO ARTICLE FORTY-FOUR OF THE PUBLIC HEALTH LAW.
(B) FOR THE PURPOSES OF THIS SECTION, "CLOSED BLOCK MEMBER" SHALL MEAN
THE HOLDER OF A CONTRACT OF MEDICARE SUPPLEMENTAL INSURANCE ISSUED BY A
CORPORATION PURSUANT TO A FORM FOR WHICH SUCH CORPORATION NO LONGER
SOLICITS OR ACCEPTS NEW SUBSCRIBERS, BUT CONTINUES TO OFFER RENEWAL
CONTRACTS TO EXISTING SUBSCRIBERS UNDER SUCH FORM.
S 3. This act shall take effect January 1, 2012 and shall apply to all
policies issued, renewed, modified or altered on or after such date.