senate Bill S6810B

Signed By Governor
2011-2012 Legislative Session

Relates to managed care health savings accounts

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Sponsored By

Archive: Last Bill Status Via A9711 - Signed by Governor


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

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Actions

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Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Aug 17, 2012 signed chap.440
Aug 06, 2012 delivered to governor
Jun 21, 2012 returned to assembly
passed senate
3rd reading cal.569
substituted for s6810b
Jun 21, 2012 substituted by a9711b
Jun 14, 2012 amended on third reading 6810b
vote reconsidered - restored to third reading
Jun 14, 2012 returned to senate
recalled from assembly
May 30, 2012 referred to insurance
delivered to assembly
passed senate
May 14, 2012 amended on third reading 6810a
Apr 30, 2012 advanced to third reading
Apr 26, 2012 2nd report cal.
Apr 25, 2012 1st report cal.569
Mar 23, 2012 referred to insurance

Votes

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Apr 25, 2012 - Insurance committee Vote

S6810
11
0
committee
11
Aye
0
Nay
5
Aye with Reservations
1
Absent
1
Excused
0
Abstained
show committee vote details

Committee Vote: Apr 25, 2012

absent (1)
excused (1)

Bill Amendments

Original
A
B (Active)
Original
A
B (Active)

S6810 - Bill Details

See Assembly Version of this Bill:
A9711B
Law Section:
Insurance Law
Laws Affected:
Add §1124, Ins L

S6810 - Bill Texts

view summary

Relates to managed care health savings accounts.

view 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.

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download pdf
                    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

S6810A - Bill Details

See Assembly Version of this Bill:
A9711B
Law Section:
Insurance Law
Laws Affected:
Add §1124, Ins L

S6810A - Bill Texts

view summary

Relates to managed care health savings accounts.

view sponsor memo
BILL NUMBER:S6810A

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 some 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 HMOs.
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 full text
download pdf
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 6810--A
    Cal. No. 569

                            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  --  reported
  favorably  from  said  committee,  ordered to first and second report,
  ordered to a third reading, amended and ordered  reprinted,  retaining
  its place in the order of third reading

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, AS DEFINED  IN
PARAGRAPH TWO OF SUBSECTION C OF SECTION TWO HUNDRED TWENTY-THREE OF THE
INTERNAL REVENUE CODE IN CONJUNCTION WITH A HEALTH REIMBURSEMENT ACCOUNT
OR  A  HEALTH  SAVINGS  ACCOUNT ESTABLISHED 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)  A MUNICIPALITY FOR PURPOSES OF THIS SECTION MEANS A CITY, COUNTY,
TOWN, VILLAGE, BOARD  OF  COOPERATIVE  EDUCATIONAL  SERVICES,  A  SCHOOL
DISTRICT, OR A DISTRICT, AS DEFINED IN SECTION ONE HUNDRED NINETEEN-N OF
THE GENERAL MUNICIPAL LAW.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD15062-02-2

S. 6810--A                          2

  (D)  HEALTH  MAINTENANCE ORGANIZATIONS OFFERING HIGH DEDUCTIBLE HEALTH
PLANS PURSUANT TO THIS SECTION SHALL REPORT TO  THE  SUPERINTENDENT  AND
COMMISSIONER OF HEALTH THE NUMBER OF GROUPS AND COVERED LIVES UNDER HIGH
DEDUCTIBLE  HEALTH  PLANS  OFFERED  PURSUANT TO THIS SECTION COMPARED TO
NON-HIGH DEDUCTIBLE HEALTH PLANS, THE PREMIUMS OF HIGH DEDUCTIBLE HEALTH
PLANS  OFFERED  PURSUANT TO THIS SECTION COMPARED TO NON-HIGH DEDUCTIBLE
HEALTH PLANS, THE CLAIMS EXPERIENCE UNDER HIGH DEDUCTIBLE  HEALTH  PLANS
OFFERED  PURSUANT TO THIS SECTION COMPARED TO NON-HIGH DEDUCTIBLE HEALTH
PLANS, AND ANY OTHER PERTINENT INFORMATION THAT MAY BE REQUIRED  BY  THE
SUPERINTENDENT  OR  THE COMMISSIONER OF HEALTH PRIOR TO 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.

Co-Sponsors

S6810B (ACTIVE) - Bill Details

See Assembly Version of this Bill:
A9711B
Law Section:
Insurance Law
Laws Affected:
Add §1124, Ins L

S6810B (ACTIVE) - Bill Texts

view summary

Relates to managed care health savings accounts.

view sponsor memo
BILL NUMBER:S6810B

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:
The purpose of this bill is to allow HMOs to
offer to certain
municipalities a group high deductible health plan in conjunction
with a health savings account.

SUMMARY OF PROVISIONS:
The bill would allow HMOs to offer to certain
municipalities a group high deductible health plan in conjunction
with a health reimbursement account or a health savings account,
provided that the plan is offered pursuant to an existing collective
bargaining agreement between the municipalities and its employees and
that the municipality pays the deductible 011 behalf of its
employees. An HMO that offers such a plan would also be required to
report to the Superintendent of Financial Services and the Commissioner
of Health the number of people covered by the plan and how
the plan compares to similar non-high deductible plans by April 1,
2014. The provisions of this bill would sunset on December 31, 2015.

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 some 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.

This bill would establish a Managed Care Savings Account, limited to
certain municipalities, to allow HMOs to offer group high deductible
health plans, in conjunction with a health savings account or health
reimbursement account, provided that the municipality pays
contributes an amount at least equal to the deductible required by
the plan. In addition, the plan must be offered pursuant to an
existing collective bargaining agreement. An HMO offering this
product would be required to report to the Department of Financial
Services and the Commissioner of Health on a variety of measures
related to these plans. The provisions of this bill would sunset on
December 31, 2015.

LEGISLATIVE HISTORY:
New bill.

FISCAL IMPLICATIONS:
None.

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


view full text
download pdf
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 6810--B
    Cal. No. 569

                            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  --  reported
  favorably  from  said  committee,  ordered to first and second report,
  ordered to a third reading, amended and ordered  reprinted,  retaining
  its  place  in  the  order  of third reading --   passed by Senate and
  delivered to the Assembly, recalled, vote  reconsidered,  restored  to
  third  reading,  amended and ordered reprinted, retaining its place in
  the order of third reading

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. MANAGED CARE HEALTH SAVINGS ACCOUNT. (A) A HEALTH  MAINTENANCE
ORGANIZATION  CERTIFIED  PURSUANT  TO  ARTICLE  FORTY-FOUR OF THE PUBLIC
HEALTH LAW MAY OFFER A GROUP HIGH DEDUCTIBLE HEALTH PLAN, AS DEFINED  IN
PARAGRAPH TWO OF SUBSECTION C OF SECTION TWO HUNDRED TWENTY-THREE OF THE
INTERNAL REVENUE CODE IN CONJUNCTION WITH A HEALTH REIMBURSEMENT ACCOUNT
OR  A  HEALTH  SAVINGS  ACCOUNT ESTABLISHED 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) A MUNICIPALITY FOR PURPOSES OF THIS SECTION MEANS A TOWN.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD15062-05-2

S. 6810--B                          2

  (D)  A  HEALTH  MAINTENANCE  ORGANIZATION OFFERING THE HIGH DEDUCTIBLE
HEALTH PLAN PURSUANT TO THIS SECTION SHALL REPORT TO THE  SUPERINTENDENT
AND  COMMISSIONER  OF  HEALTH THE NUMBER OF COVERED LIVES UNDER THE HIGH
DEDUCTIBLE HEALTH PLAN OFFERED PURSUANT  TO  THIS  SECTION  COMPARED  TO
SIMILAR  NON-HIGH  DEDUCTIBLE  HEALTH  PLANS,  THE  PREMIUMS OF THE HIGH
DEDUCTIBLE HEALTH PLAN OFFERED PURSUANT  TO  THIS  SECTION  COMPARED  TO
SIMILAR  NON-HIGH  DEDUCTIBLE  HEALTH PLANS, THE CLAIMS EXPERIENCE UNDER
THE HIGH  DEDUCTIBLE  HEALTH  PLAN  OFFERED  PURSUANT  TO  THIS  SECTION
COMPARED  TO  SIMILAR  NON-HIGH  DEDUCTIBLE  HEALTH PLANS, AND ANY OTHER
PERTINENT INFORMATION THAT MAY BE REQUIRED BY THE SUPERINTENDENT OR  THE
COMMISSIONER OF HEALTH PRIOR TO APRIL FIRST, TWO THOUSAND FOURTEEN.
  (E)  THE  PROVISIONS  OF  THIS  SECTION  SHALL  ONLY APPLY TO COVERAGE
OFFERED PURSUANT TO A COLLECTIVE BARGAINING AGREEMENT ENTERED INTO PRIOR
TO THE EFFECTIVE DATE OF THIS SECTION.
  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.

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