Assembly Bill A7981A

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

                                 7981--A

                       2013-2014 Regular Sessions

                          I N  A S S E M B L Y

                              June 13, 2013
                               ___________

Introduced by M. of A. COOK, GOTTFRIED, CYMBROWITZ -- Multi-Sponsored by
  --  M. of A.  BRENNAN, GLICK, HOOPER, JACOBS, PEOPLES-STOKES, SWEENEY,
  WEINSTEIN, WEISENBERG -- read once and referred to  the  Committee  on
  Insurance  --  recommitted to the Committee on Insurance in accordance
  with Assembly Rule 3, sec. 2 -- committee  discharged,  bill  amended,
  ordered reprinted as amended and recommitted to said committee

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

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD06632-02-4
              

A. 7981--A                          2

ACCEPTS NEW POLICYHOLDERS, BUT CONTINUES TO OFFER RENEWAL  CONTRACTS  TO
EXISTING POLICYHOLDERS UNDER SUCH FORM.
  S 2. The insurance law is amended by adding a new section 4329 to read
as follows:
  S  4329. 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 on January first next  succeeding  the
date on which it shall have become a law and shall apply to all policies
issued, renewed, modified or altered on or after such date.