senate Bill S1994A

2013-2014 Legislative Session

Authorizes municipalities and districts to enter into cooperative agreements for the provision of centralized public employee administrative and personnel services

download bill text pdf

Sponsored By

Archive: Last Bill Status - In Committee


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

do you support this bill?

Actions

view actions (4)
Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Jan 22, 2014 print number 1994a
amend and recommit to local government
Jan 08, 2014 referred to local government
Jan 09, 2013 referred to local government

Bill Amendments

Original
A (Active)
Original
A (Active)

S1994 - Bill Details

See Assembly Version of this Bill:
A1448A
Current Committee:
Law Section:
General Municipal Law
Laws Affected:
Amd §§92-a, 119-n & 119-o, Gen Muni L; amd §§4326, 4702, 4704, 4705 & 4706, add §4326-a, Ins L
Versions Introduced in 2011-2012 Legislative Session:
S2843, A6079

S1994 - Bill Texts

view summary

Authorizes municipalities and districts to enter into cooperative agreements for the provision of centralized public employee administrative and personnel services; provides for health insurance coverage of municipal employees pursuant to standardized health insurance contracts; and authorizes the provision of reduced premiums for municipal health insurance plans which offer wellness programs.

view sponsor memo
BILL NUMBER:S1994

TITLE OF BILL:
An act
to amend the general municipal law, in relation to authorizing cities,
towns, villages, school districts, boards of cooperative educational
services, library districts, fire districts, improvement districts and
special districts to enter into cooperative agreements for the provision
of centralized public employee administrative and personnel services;
and to amend the insurance law, in relation to authorizing the provision
of health insurance coverage to municipal employees pursuant to
standardized health insurance contracts and authorizing reduction of
premiums for municipal cooperative health benefit plans which offer
employee wellness programs

PURPOSE OR GENERAL IDEA OF BILL:
The purpose of this bill is to enhance the ability of municipalities
to join forces and cooperatively provide and manage employee benefits
in a manner that reduces the cost of providing such, benefits but
which is also able to give municipal employees more choices in the
benefits provided. Further, it clearly enables municipalities to,
cooperatively administer such employee benefits and other
administrative personnel overhead costs to help lower the overall
cost of municipal government.

SUMMARY OF SPECIFIC PROVISIONS:

Section 1: Amends General Municipal Law section 92-a to add a new
subdivision (8) so that the provisions of this section shall not
apply if a municipal cooperative health plan is established pursuant
to Insurance Law Article 47.

Section 2: Amends General Municipal Law section 119-n to expand the
definition of "municipal corporation" for the purpose of expanding
the scope of Article 5-G of the General Municipal Law which relates
to municipal cooperative agreements or activities.

Section 3: Amends General Municipal Law section 119-0 to add a new
paragraph (b-1)to specifically authorize municipalities to
cooperatively establish a centralized administrative office to share
responsibilities and work for the administration of certain employee
personnel services such as: employee payroll, time & attendance;
participation in the NYS Health Insurance program (NYSHIP); the
establishment of shared use and selection of various health care
plans for its municipal employees; employee participation in tax
deferred retirement plans, health care plans, and child care plans;
municipal cooperative health plans established pursuant to Insurance
Law article 47; and contracting with third party administrators to
manage all shared employee health care benefits or tax deferred
programs.

Section 4: A technical amendment to Insurance Law section 4328.

Section 5: Adds a new subparagraph to Insurance Law section
4326 to permit a municipal employer to offer to its employees the
Healthy NY insurance product as one of the plans that are offered to
such employees.

Section 6: Adds an new Insurance Law section 4326-a to allow
municipalities, either alone or in cooperation with other municipal
employers, to offer the standardized health insurance product called
Healthy NY. While employees may select the Health NY health.
insurance product, which is on average about 7% less expensive than
most other cooperative health insurance products, the stop loss
subsidy that is offered to qualifying small business employers or
sole proprietors that may purchase Healthy NY may not be offered. The
reason for this is because the stop loss subsidy is financed by HeRA
funds and was designed to further reduce the cost of Healthy NY to
encourage small employers and sole proprietors to purchase this
product for their employees so that they had some type of medical
coverage.

Section 7: Amends Insurance Law section 4702 which is the definition
section of Insurance Law Article 47 which allows municipalities to
establish self-insured municipal cooperative health benefit plans.
This provision allows the premium rates for such health plans to
allow for an actuarially appropriate reduction in premium rates for
municipal employees that participate in wellness programs approved by
the Insurance Department. Such Wellness programs can be either a risk
management system that identifies at risk populations or any other
systematic program or course of medical conduct which helps to
promote good health or mitigates against acute or chronic sickness or
disease. Also, for clarity, it adds the definition for "stop loss
insurance" for the use in Article 47 of the Insurance Law.

Section 8: Amends Insurance Law section 4704 to municipalities that
are needed to participate in health benefit plan from 3 to 2
municipalities. covered employees need to establish such plan is
employees.
reduce the number of a municipal cooperative In addition, the number
of reduced from 2,000 to 500

Section 9: Amends Insurance Law section 4704(b) to extend the time
period from 30 days to 60 days after the Insurance Department's
denial of an application to establish a municipal cooperative health
benefit plan for the municipal applicants can appeal such a ruling.

Section 10: Amends Insurance Law section 4705 so that the municipal
cooperative health benefit plan can offer one or more than one health
benefit plan to its municipal employee members. Further, that a
Wellness Program option, with a reduced premium rate may also be
offered.

Section 11: Amends Insurance Law section 4706 that relates to reserve
and surplus requirements so that such reserves may be reduced to
reflect a smaller number of municipal participants and number of
covered employee lives.

JUSTIFICATION:
The cost of municipal government in New York continues to escalate,
hence local real property taxes to support such governmental
activities continues to increase. Further, due to New York's
declining tax base in many sections of New York, this had lead to
further increases in municipal tax rates to compensate for the
reduced assess value of real property. The Purpose of this bill is to
give municipalities the tools that
they need to cooperatively provide services and administer municipal
employee benefits. Municipal employee benefits are a major part of the
cost of running local municipal governments. This bill attempts to
enhance the ability of municipalities to cooperatively provide
municipal employee benefits such as health insurance, and tax
deferred employee plans such as retirement, health flex, and child
care plans. Further, it will allow municipalities to offer their
employees the ability to participate in more health insurance plans
that better reflect the needs of its employees. This increase in
choice of plans can help to reduce the cost of providing benefits
because employees will be able to better select the benefit plans
that matches their family's needs (which can be at a reduced cost).
Further, by increasing a municipality's ability to offer different
health plans, this can increase employee satisfaction and hopefully
productivity.

The bill also allows municipalities, either alone or in conjunction
with others, to reduce premium rates if its employees to participate
in Wellness programs. Not only will the participation in Wellness
Programs help to reduce premium rates, it can increase the well being
of its employees and hence, their work productivity via fewer sick
days or injuries.

This bill also authorizes municipalities, either alone or jointly, to
offer the Healthy NY insurance product which is, on average 7 9(,
cheaper than other health insurance products. Further, it can help
reduce the overhead costs that municipalities experience to
administer employee benefits by specifically allowing municipalities
to join forces to share the cost of administering the servicers
performed by a personnel office or by the town or village clerk.

PRIOR LEGISLATIVE HISTORY:
2011-12- S.2843 - Passed the Senate in 2011.

FISCAL IMPLICATIONS: None.

EFFECTIVE DATE:
January 1, next succeeding the date it shall have become law,

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

                                  1994

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                               (PREFILED)

                             January 9, 2013
                               ___________

Introduced  by Sen. CARLUCCI -- read twice and ordered printed, and when
  printed to be committed to the Committee on Local Government

AN ACT to amend the general municipal law, in  relation  to  authorizing
  cities,  towns,  villages,  school  districts,  boards  of cooperative
  educational services, library districts, fire  districts,  improvement
  districts  and  special districts to enter into cooperative agreements
  for the provision of centralized public  employee  administrative  and
  personnel  services;  and  to  amend the insurance law, in relation to
  authorizing the provision of health insurance  coverage  to  municipal
  employees  pursuant  to  standardized  health  insurance contracts and
  authorizing reduction of premiums  for  municipal  cooperative  health
  benefit plans which offer employee wellness programs

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

  Section 1. Section 92-a of the general municipal law,  is  amended  by
adding a new subdivision 8 to read as follows:
  8. THE PROVISIONS OF THIS SECTION SHALL NOT APPLY TO ANY PUBLIC CORPO-
RATION  WHICH  PROVIDES  HEALTH  INSURANCE  BENEFITS TO ITS OFFICERS AND
EMPLOYEES PURSUANT TO ARTICLE FORTY-SEVEN OF THE INSURANCE LAW.
  S 2. Subdivision a of section 119-n of the general municipal  law,  as
amended  by  chapter  413  of  the  laws  of 1991, is amended to read as
follows:
  a. The term "municipal corporation" means a county outside the city of
New York, a city, a town, a village, a board of cooperative  educational
services, A PUBLIC LIBRARY AS DEFINED IN SECTION TWO HUNDRED FIFTY-THREE
OF THE EDUCATION LAW, A fire district or a school district.
  S  3.  Subdivision  2 of section 119-o of the general municipal law is
amended by adding a new paragraph b-1 to read as follows:
  B-1.   THE ESTABLISHMENT  OF  A  CENTRALIZED  OFFICE  TO  COLLECTIVELY
PROVIDE:

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD00407-01-3

S. 1994                             2

  (I)  EMPLOYEE  PAYROLL,  TIME, ATTENDANCE AND PERSONNEL ADMINISTRATION
SERVICES;
  (II) PARTICIPATION IN THE NEW YORK STATE HEALTH INSURANCE PROGRAM;
  (III)  A  PERSONNEL  OFFICE  TO PROVIDE INFORMATION ON EMPLOYEE HEALTH
INSURANCE AND OTHER EMPLOYEE BENEFITS;
  (IV) EMPLOYEE HEALTH INSURANCE BENEFITS  FROM  MORE  THAN  ONE  HEALTH
INSURANCE CARRIER OR ORGANIZATION, WHICH GRANTS EACH EMPLOYEE THE CHOICE
OF WHICH HEALTH INSURANCE PLAN WHICH WILL PROVIDE COVERAGE;
  (V)  EMPLOYEE  PARTICIPATION  IN TAX DEFERRED RETIREMENT PLANS, HEALTH
CARE PLANS AND CHILD CARE PLANS;
  (VI) MUNICIPAL COOPERATIVE HEALTH BENEFIT PLANS  PURSUANT  TO  ARTICLE
FORTY-SEVEN OF THE INSURANCE LAW;
  (VII)  ADEQUATE  AND  ONGOING FINANCIAL CONTROLS AND SECURITY ARRANGE-
MENTS TO  ENSURE  THAT  THE  PARTICIPATING  MUNICIPAL  CORPORATIONS  AND
DISTRICTS REMAIN SOLVENT;
  (VIII)  THE  PREPARATION AND DISSEMINATION OF INFORMATIONAL AND SOLIC-
ITATION MATERIALS TO  FACILITATE  COMPARISON  OF  THE  VARIOUS  EMPLOYEE
HEALTH  INSURANCE  PLANS  OFFERED  BY THE PARTICIPATING MUNICIPAL CORPO-
RATIONS AND DISTRICTS;
  (IX)  FOR  THE  ENROLLMENT,  BILLING,  PREMIUM   COLLECTION,   PREMIUM
DISBURSEMENT  AND  RECONCILIATION,  COMMISSION  DISBURSEMENT,  AND OTHER
PROCESSING SERVICES FOR HEALTH INSURANCE BENEFITS PROVIDED TO  MUNICIPAL
EMPLOYEES;
  (X)  CONTRACTING WITH QUALIFIED THIRD PARTIES FOR THE PROVISION OF ANY
SERVICE NECESSARY TO CARRY OUT SUCH OFFICE'S POWERS AND DUTIES; AND
  (XI) NEGOTIATION WITH PARTICIPATING HEALTH INSURERS AND HEALTH MAINTE-
NANCE ORGANIZATIONS WITH REGARD TO THE ADMINISTRATIVE  EXPENSES  PORTION
OF  PREMIUM  RATES CHARGED FOR HEALTH CARE COVERAGE OFFERED TO MUNICIPAL
EMPLOYEES BY SUCH OFFICE.
  S 4. Clause (iii) of subparagraph (B) of paragraph 1 of subsection (c)
of section 4326 of the insurance law, as added by chapter 1 of the  laws
of 1999, is amended to read as follows:
  (iii)  at  least  thirty  percent  of its eligible employees receiving
annual wages from the employer at a level equal to or less  than  thirty
thousand  dollars.  The  thirty thousand dollar figure shall be adjusted
periodically pursuant to subparagraph (F) of this paragraph[.]; OR
  S 5. Paragraph 1 of subsection (c) of section 4326  of  the  insurance
law is amended by adding a new subparagraph (B-1) to read as follows:
  (B-1)  A  MUNICIPAL  EMPLOYER  AS  DEFINED  IN  AND IN ACCORDANCE WITH
SECTION FOUR THOUSAND THREE HUNDRED TWENTY-SIX-A OF THIS ARTICLE.
  S 6. The insurance law is amended by adding a new  section  4326-a  to
read as follows:
  S  4326-A.  STANDARDIZED  HEALTH  INSURANCE  CONTRACTS  FOR  MUNICIPAL
EMPLOYERS. (A) FOR THE PURPOSES OF THIS  SECTION,  "MUNICIPAL  EMPLOYER"
SHALL  MEAN A MUNICIPAL CORPORATION OR A DISTRICT, AS DEFINED IN SECTION
ONE HUNDRED NINETEEN-N OF THE GENERAL MUNICIPAL LAW, OR ANY  COMBINATION
THEREOF.
  (B) NOTWITHSTANDING ANY OTHER PROVISION OF LAW, ANY MUNICIPAL EMPLOYER
MAY  OFFER ITS EMPLOYEES, THAT ARE NOT OTHERWISE QUALIFIED TO PURCHASE A
STANDARDIZED HEALTH INSURANCE CONTRACT SPECIFIED IN SECTION  FOUR  THOU-
SAND  THREE  HUNDRED  TWENTY-SIX  OF  THIS  ARTICLE SHALL BE ELIGIBLE TO
PURCHASE SUCH STANDARDIZED HEALTH INSURANCE CONTRACTS; PROVIDED,  HOWEV-
ER,  THAT  SUCH  MUNICIPAL  EMPLOYERS  AND  EMPLOYEES THAT PURCHASE SUCH
CONTRACTS  SHALL  NOT  DIRECTLY  OR  INDIRECTLY  RECEIVE   ANY   PREMIUM
REDUCTIONS  DUE  TO  STOP  LOSS  FUND SUBSIDIES RECEIVED BY INSURERS AND

S. 1994                             3

HEALTH MAINTENANCE ORGANIZATIONS PURSUANT TO SECTION FOUR THOUSAND THREE
HUNDRED TWENTY-SEVEN OF THIS ARTICLE.
  (C)  ALL  HEALTH  MAINTENANCE ORGANIZATIONS THAT ARE REQUIRED TO OFFER
CONTRACTS PURSUANT TO SECTION FOUR THOUSAND THREE HUNDRED TWENTY-SIX  OF
THIS  ARTICLE  AND  ALL  COMPANIES  SUBJECT TO ARTICLE FORTY-TWO OF THIS
CHAPTER AND CORPORATIONS SUBJECT TO THIS ARTICLE THAT VOLUNTARILY  OFFER
CONTRACTS  PURSUANT TO SUCH SECTION SHALL NOT RECEIVE STOP LOSS FUNDS OR
REIMBURSEMENTS FOR CLAIMS LOSSES SUSTAINED BY STANDARDIZED HEALTH INSUR-
ANCE CONTRACTS ISSUED TO MUNICIPAL EMPLOYERS AND EMPLOYEES  PURSUANT  TO
THIS SECTION.
  (D)  PREMIUM  RATE  CALCULATIONS  FOR  CONTRACTS  ISSUED  TO MUNICIPAL
EMPLOYERS AND EMPLOYEES PURSUANT TO THIS SECTION SHALL BE SUBJECT TO THE
FOLLOWING:
  (1) COVERAGE MAY BE COMMUNITY RATED OR EXPERIENCE RATED,  AND  INCLUDE
RATE  TIERS  FOR  INDIVIDUALS, TWO ADULT FAMILIES AND AT LEAST ONE OTHER
FAMILY TIER. THE RATE DIFFERENCES MUST BE BASED UPON  THE  COST  DIFFER-
ENCES FOR THE DIFFERENT FAMILY UNITS AND THE RATE TIERS MUST BE UNIFORM-
LY APPLIED;
  (2)  IF  GEOGRAPHIC  RATING  AREAS ARE UTILIZED, SUCH GEOGRAPHIC AREAS
MUST BE REASONABLE AND IN A GIVEN CASE MAY INCLUDE A SINGLE COUNTY; AND
  (3) CLAIMS EXPERIENCE UNDER CONTRACTS ISSUED  TO  MUNICIPAL  EMPLOYERS
AND EMPLOYEES MAY BE POOLED SEPARATELY FOR RATE SETTING PURPOSES.
  S  7. Subsections (a) and (f) of section 4702 of the insurance law, as
added by chapter 689 of  the  laws  of  1994,  are  amended  and  a  new
subsection (i-1) is added to read as follows:
  (a) "Community rating" means a rating methodology in which the premium
equivalent  rate  for  all persons covered under a municipal cooperative
health benefit plan is the same, based upon the experience of the entire
pool of risks covered under the plan, without regard to age, sex, health
status or occupation and such that refunds, rebates,  credits  or  divi-
dends  based  upon  age,  sex,  health  status  or  occupation  are  not
permitted; PROVIDED, HOWEVER, THAT,  SUBJECT  TO  THE  APPROVAL  OF  THE
SUPERINTENDENT,   SUCH  PLAN  MAY  PROVIDE  AN  ACTUARIALLY  APPROPRIATE
REDUCTION IN PREMIUM RATES IN RETURN  FOR  AN  ENROLLEE'S  OR  INSURED'S
ADHERENCE  TO A BONA FIDE WELLNESS PROGRAM. A BONA FIDE WELLNESS PROGRAM
IS EITHER A RISK MANAGEMENT SYSTEM THAT IDENTIFIES  AT-RISK  POPULATIONS
OR ANY OTHER SYSTEMATIC PROGRAM OR COURSE OF MEDICAL CONDUCT WHICH HELPS
TO  PROMOTE  GOOD  HEALTH, HELPS TO PREVENT OR MITIGATE ACUTE OR CHRONIC
SICKNESS OR DISEASE, OR WHICH MINIMIZES ADVERSE HEALTH CONSEQUENCES  DUE
TO  LIFESTYLE.  SUCH WELLNESS PROGRAM SHALL DEMONSTRATE ACTUARIALLY THAT
IT ENCOURAGES THE GENERAL GOOD HEALTH  AND  WELL-BEING  OF  THE  COVERED
POPULATION. SUCH PLAN SHALL NOT REQUIRE SPECIFIC OUTCOMES AS A RESULT OF
AN ENROLLEE'S OR INSURED'S ADHERENCE TO THE APPROVED WELLNESS PROGRAM.
  (f) "Municipal corporation" means within the state of New York, a city
[with  a  population  of less than one million or], a county outside the
city of New  York,  town,  village,  board  of  cooperative  educational
services, school district, A FIRE DISTRICT, a public library, as defined
in section two hundred fifty-three of the education law, or district, as
defined in section one hundred nineteen-n of the general municipal law.
  (I-1)  "STOP-LOSS  INSURANCE"  MEANS  AN  INSURANCE POLICY WHEREBY THE
INSURER AGREES TO PAY CLAIMS OR INDEMNIFY A  MUNICIPAL  CORPORATION  FOR
LOSSES  INCURRED  UNDER  A  MUNICIPAL COOPERATIVE HEALTH BENEFIT PLAN IN
EXCESS OF SPECIFIED LOSS LIMITS FOR INDIVIDUAL  CLAIMS  AND/OR  FOR  ALL
CLAIMS COMBINED, OR ANY SIMILAR ARRANGEMENT.
  S  8.  Paragraphs  2  and  3  of subsection (a) of section 4704 of the
insurance law, paragraph 2 as amended by section 3 of part A of  chapter

S. 1994                             4

494  of  the laws of 2009 and paragraph 3 as added by chapter 689 of the
laws of 1994, are amended to read as follows:
  (2)  except  for any plan that provided medical, surgical and hospital
services on or  before  January  first,  nineteen  hundred  ninety-three
pursuant  to  a municipal cooperation agreement, the number of municipal
corporations participating in the municipal cooperative  health  benefit
plan shall be at least [three] TWO;
  (3)  except  for any plan that provided medical, surgical and hospital
services to at least three hundred fifty  covered  employees  (including
retirees and not including dependents) on or before January first, nine-
teen hundred ninety-three pursuant to a municipal cooperation agreement,
the  number  of  covered employees (including retirees and not including
dependents) of municipal corporations  participating  in  the  municipal
cooperative  health  benefit  plan shall be at least [two thousand] FIVE
HUNDRED;
  S 9. Subsection (b) of section 4704 of the insurance law, as added  by
chapter 689 of the laws of 1994, is amended to read as follows:
  (b) The superintendent shall refuse to grant a certificate of authori-
ty  to an applicant that fails to meet the requirements of this section.
Notice of refusal shall be in writing and shall set forth the basis  for
the  refusal. If the applicant submits a written request within [thirty]
SIXTY days after receipt of the notice of  refusal,  the  superintendent
shall  promptly  conduct a hearing to give the applicant the opportunity
to show cause why the refusal should not be made final.
  S 10. Paragraphs 1, 2 and 5 of subsection (d) of section 4705  of  the
insurance law, paragraphs 1 and 5 as added by chapter 689 of the laws of
1994  and paragraph 2 as amended by chapter 681 of the laws of 2002, are
amended to read as follows:
  (1) shall design the plan OR PLANS of benefits provided OR OFFERED  by
the municipal cooperative health benefit plan and prepare the plan docu-
ment  and summary plan description in accordance with section four thou-
sand seven hundred nine of this article, AND SHALL  INCLUDE  A  WELLNESS
PROGRAM OPTION;
  (2) may enter into an agreement with a contract administrator or other
service  provider, determined by the governing board to be qualified, to
receive, investigate, recommend,  audit,  approve  or  make  payment  of
claims  under  the  municipal  cooperative health benefit plan OR PLANS,
provided that:
  (A) the charges,  fees  and  other  compensation  for  any  contracted
services  shall  be  clearly  stated  in written administrative services
contracts as required in subdivision six of section ninety-two-a of  the
general municipal law;
  (B)  payment  for  contracted  services  shall be made only after such
services are rendered; AND
  (C) no member of the plan's governing board  or  any  member  of  such
member's immediate family shall be an owner, officer, director, partner,
or employee of any contract administrator retained by the plan[; and
  (D) all such agreements shall comply with the requirements of subdivi-
sion six of section ninety-two-a of the general municipal law].
  (5)  shall  prepare  an  annual  budget  for the municipal cooperative
health benefit plan  to  determine  the  premium  equivalent  rates  for
participating municipal corporations to be deposited in the plan's joint
fund or funds during the fiscal year, provided that:
  (A)  the  governing board shall designate the bank or trust company in
which joint funds, including reserve funds,  are  to  be  deposited  and

S. 1994                             5

which  shall  be located in this state, duly chartered under federal law
or the laws of this state; and
  (B)  the  governing board shall establish premium equivalent rates for
participating municipal corporations on the [bases] BASIS of a community
rating methodology filed with and approved by the superintendent and, in
determining the annual premium equivalent rates, the governing board:
  (i) may contract for necessary actuarial services to estimate expected
plan expenditures during the fiscal year;
  (ii) shall maintain reserves in amounts  equal  to  or  exceeding  the
minimum  amounts  required by section four thousand seven hundred six of
this article; and
  (iii) shall maintain a stop-loss policy or  policies,  to  the  extent
required by section four thousand seven hundred seven of this article;
  S  11.  Subparagraphs  (A) and (B) of paragraph 5 of subsection (a) of
section 4706 of the insurance law, as added by chapter 689 of  the  laws
of 1994, are amended to read as follows:
  (A)  five  percent of the annualized earned premium equivalents during
the current fiscal year of a municipal cooperative health  benefit  plan
which  consists  of  [five]  TWO  or more participating municipal corpo-
rations and covers [two thousand] FIVE HUNDRED  or  more  employees  and
retirees; or
  (B)  seven percent of the annualized earned premium equivalents during
the current fiscal year of the municipal cooperative health benefit plan
which consists of [four] TWO or  fewer  participating  municipal  corpo-
rations  or  covers fewer than [two thousand] FIVE HUNDRED employees and
retirees.
  S 12. This act shall take effect on the first of January next succeed-
ing the date on which it shall have become a law.

S1994A (ACTIVE) - Bill Details

See Assembly Version of this Bill:
A1448A
Current Committee:
Law Section:
General Municipal Law
Laws Affected:
Amd §§92-a, 119-n & 119-o, Gen Muni L; amd §§4326, 4702, 4704, 4705 & 4706, add §4326-a, Ins L
Versions Introduced in 2011-2012 Legislative Session:
S2843, A6079

S1994A (ACTIVE) - Bill Texts

view summary

Authorizes municipalities and districts to enter into cooperative agreements for the provision of centralized public employee administrative and personnel services; provides for health insurance coverage of municipal employees pursuant to standardized health insurance contracts; and authorizes the provision of reduced premiums for municipal health insurance plans which offer wellness programs.

view sponsor memo
BILL NUMBER:S1994A

TITLE OF BILL: An act to amend the general municipal law, in relation
to authorizing cities, towns, villages, school districts, boards of
cooperative educational services, library districts, fire districts,
improvement districts and special districts to enter into cooperative
agreements for the provision of centralized public employee
administrative and personnel services; and to amend the insurance law,
in relation to authorizing the provision of health insurance coverage
to municipal employees pursuant to standardized health insurance
contracts and authorizing reduction of premiums for municipal
cooperative health benefit plans which offer employee wellness
programs

PURPOSE:

To enhance the ability of municipalities to join forces and
cooperatively provide and manage employee benefits in a manner that
reduces the cost of providing such, benefits but which is also able to
give municipal employees more choices in the benefits provided.
Further, it clearly enables municipalities to, cooperatively
administer such employee benefits and other administrative personnel
overhead costs to help lower the overall cost of municipal government.

SUMMARY OF PROVISIONS:

Section 1: Amends General Municipal Law section 92-a to add a new
subdivision (8) so that the provisions of this section shall not apply
if a municipal cooperative health plan is established pursuant to
Insurance Law Article 47.

Section 2: Amends General Municipal Law section 119-n to expand the
definition of "municipal corporation" for the purpose of expanding the
scope of Article 5-G of the General Municipal Law which relates to
municipal cooperative agreements or activities.

Section 3: Amends subdivision 2 of General Municipal Law section 119-o
to add a new paragraph (b-1) to specifically authorize municipalities
to cooperatively establish a centralized administrative office to
share responsibilities and work for the administration of certain
employee personnel services such as: employee payroll, time &
attendance; participation in the NYS Health Insurance program
(NYSHIP); the establishment of shared use and selection of various
health care plans for its municipal employees; employee participation
in tax deferred retirement plans, health care plans, and child care
plans; municipal cooperative health plans established pursuant to
Insurance Law article 47; and contracting with third party
administrators to manage all shared employee health care benefits or
tax deferred programs.

Section 4: A technical amendment to Insurance Law section 4326.

Section 5: Adds a new subparagraph (B-1) to Insurance Law section 4326
to permit a municipal employer to offer to its employees the Healthy
NY insurance product as one of the plans that are offered to such
employees.


Section 6: Adds an new Insurance Law section 4326-a to allow
municipalities, either alone or in cooperation with other municipal
employers, to offer the standardized health insurance product called
Healthy NY. While employees may select the Health NY health insurance
product, which is on average about 7% less expensive than most other
cooperative health insurance products, the stop loss subsidy that is
offered to qualifying small business employers or sole proprietors
that may purchase Healthy NY may not be offered. The reason for this
is because the stop loss subsidy is financed by HCRA funds and was
designed to further reduce the cost of Healthy NY to encourage small
employers and sole proprietors to purchase this product for their
employees so that they had some type of medical coverage.

Section 7: Amends Insurance Law section 4702 which is the definition
section of Insurance Law Article 47 which allows municipalities to
establish self-insured municipal cooperative health benefit plans.
This provision allows the premium rates for such health plans to allow
for an actuarially appropriate reduction in premium rates for
municipal employees that participate in wellness programs approved by
the Insurance Department. Such Wellness programs can be either a risk
management system that identifies at risk populations or any other
systematic program or course of medical conduct which helps to promote
good health or mitigates against acute or chronic sickness or disease.
Also, for clarity, it adds the definition for "stop loss insurance"
for the use in Article 47 of the Insurance Law.

Section 8: Amends Insurance Law section 4704 to reduce the number of
municipalities that are needed to participate in a cooperative health
benefit plan from 3 to 2. In addition, the number of covered employees
needed to establish such plan is reduced from 2,000 to 500.

Section 9: Amends Insurance Law section 4704(b) to extend the time
period from 30 days to 60 days after the Insurance Department's denial
of an application to establish a municipal cooperative health benefit
plan for the municipal applicants to appeal such a ruling.

Section 10: Amends Insurance Law section 4705 so that the municipal
cooperative health benefit plan can offer one or more than one health
benefit plans to its municipal employee members. Further, that a
Wellness Program option, with a reduced premium rate, may also be
offered.

Section 11: Amends Insurance Law section 4706 that relates to reserve
and surplus requirements so that such reserves may be reduced to
reflect a smaller number of municipal participants and number of
covered employee.

Section 12: Effective date.

JUSTIFICATION:

The cost of municipal government in New York continues to escalate,
hence local real property taxes to support such governmental
activities continues to increase. Further, due to New York's declining
tax base in many sections of New York, this had lead to further
increases in municipal tax rates to compensate for the reduced assess
value of real property. The Purpose of this bill is to give


municipalities the tools that they need to cooperatively provide
services and administer municipal employee benefits. Municipal
employee benefits are a major part of the cost of running local
municipal governments. This bill attempts to enhance the ability of
municipalities to cooperatively provide municipal employee benefits
such as health insurance, and tax deferred employee plans such as
retirement, health flex, and child care plans. Further, it will allow
municipalities to offer their employees the ability to participate in
more health insurance plans that better reflect the needs of its
employees. This increase in choice of plans can help to reduce the
cost of providing benefits because employees will be able to better
select the benefit plans that matches their family's needs (which can
be at a reduced cost). Further, by increasing a municipality's ability
to offer different health plans, this can increase employee
satisfaction and hopefully productivity.

The bill also allows municipalities, either alone or in conjunction
with others, to reduce premium rates if its employees to participate
in Wellness programs. Not only will the participation in Wellness
Programs help to reduce premium rates, it can increase the well being
of its employees and hence, their work productivity via fewer sick
days or injuries.

This bill also authorizes municipalities, either alone or jointly, to
offer the Healthy NY insurance product which is, on average, cheaper
than other health insurance products. Further, it can help reduce the
overhead costs that municipalities experience to administer employee
benefits by specifically allowing municipalities to join forces to
share the cost of administering the servicers performed by a personnel
office or by the town or village clerk.

LEGISLATIVE HISTORY:

2011-12- S.2843 - Passed the Senate in 2011.

FISCAL IMPLICATIONS:

To be determined.

LOCAL FISCAL IMPLICATIONS:

Anticipated savings to local governments.

EFFECTIVE DATE:

This act shall take effect on the first of January next succeeding the
date on which it shall have become a law.

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

                                 1994--A

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                               (PREFILED)

                             January 9, 2013
                               ___________

Introduced  by Sen. CARLUCCI -- read twice and ordered printed, and when
  printed to be committed to the Committee on Local Government -- recom-
  mitted to the Committee on Local Government in accordance with  Senate
  Rule  6,  sec.  8  --  committee  discharged,  bill  amended,  ordered
  reprinted as amended and recommitted to said committee

AN ACT to amend the general municipal law, in  relation  to  authorizing
  cities,  towns,  villages,  school  districts,  boards  of cooperative
  educational services, library districts, fire  districts,  improvement
  districts  and  special districts to enter into cooperative agreements
  for the provision of centralized public  employee  administrative  and
  personnel  services;  and  to  amend the insurance law, in relation to
  authorizing the provision of health insurance  coverage  to  municipal
  employees  pursuant  to  standardized  health  insurance contracts and
  authorizing reduction of premiums  for  municipal  cooperative  health
  benefit plans which offer employee wellness programs

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

  Section 1. Section 92-a of the general municipal law,  is  amended  by
adding a new subdivision 8 to read as follows:
  8. THE PROVISIONS OF THIS SECTION SHALL NOT APPLY TO ANY PUBLIC CORPO-
RATION  WHICH  PROVIDES  HEALTH  INSURANCE  BENEFITS TO ITS OFFICERS AND
EMPLOYEES PURSUANT TO ARTICLE FORTY-SEVEN OF THE INSURANCE LAW.
  S 2. Subdivision a of section 119-n of the general municipal  law,  as
amended  by  chapter  413  of  the  laws  of 1991, is amended to read as
follows:
  a. The term "municipal corporation" means a county outside the city of
New York, a city, a town, a village, a board of cooperative  educational
services, A PUBLIC LIBRARY AS DEFINED IN SECTION TWO HUNDRED FIFTY-THREE
OF THE EDUCATION LAW, A fire district or a school district.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD00407-02-4

S. 1994--A                          2

  S  3.  Subdivision  2 of section 119-o of the general municipal law is
amended by adding a new paragraph b-1 to read as follows:
  B-1.    THE  ESTABLISHMENT  OF  A  CENTRALIZED  OFFICE TO COLLECTIVELY
PROVIDE:
  (I) EMPLOYEE PAYROLL, TIME, ATTENDANCE  AND  PERSONNEL  ADMINISTRATION
SERVICES;
  (II) PARTICIPATION IN THE NEW YORK STATE HEALTH INSURANCE PROGRAM;
  (III)  A  PERSONNEL  OFFICE  TO PROVIDE INFORMATION ON EMPLOYEE HEALTH
INSURANCE AND OTHER EMPLOYEE BENEFITS;
  (IV) EMPLOYEE HEALTH INSURANCE BENEFITS  FROM  MORE  THAN  ONE  HEALTH
INSURANCE CARRIER OR ORGANIZATION, WHICH GRANTS EACH EMPLOYEE THE CHOICE
OF WHICH HEALTH INSURANCE PLAN WHICH WILL PROVIDE COVERAGE;
  (V)  EMPLOYEE  PARTICIPATION  IN TAX DEFERRED RETIREMENT PLANS, HEALTH
CARE PLANS AND CHILD CARE PLANS;
  (VI) MUNICIPAL COOPERATIVE HEALTH BENEFIT PLANS  PURSUANT  TO  ARTICLE
FORTY-SEVEN OF THE INSURANCE LAW;
  (VII)  ADEQUATE  AND  ONGOING FINANCIAL CONTROLS AND SECURITY ARRANGE-
MENTS TO  ENSURE  THAT  THE  PARTICIPATING  MUNICIPAL  CORPORATIONS  AND
DISTRICTS REMAIN SOLVENT;
  (VIII)  THE  PREPARATION AND DISSEMINATION OF INFORMATIONAL AND SOLIC-
ITATION MATERIALS TO  FACILITATE  COMPARISON  OF  THE  VARIOUS  EMPLOYEE
HEALTH  INSURANCE  PLANS  OFFERED  BY THE PARTICIPATING MUNICIPAL CORPO-
RATIONS AND DISTRICTS;
  (IX)  FOR  THE  ENROLLMENT,  BILLING,  PREMIUM   COLLECTION,   PREMIUM
DISBURSEMENT  AND  RECONCILIATION,  COMMISSION  DISBURSEMENT,  AND OTHER
PROCESSING SERVICES FOR HEALTH INSURANCE BENEFITS PROVIDED TO  MUNICIPAL
EMPLOYEES;
  (X)  CONTRACTING WITH QUALIFIED THIRD PARTIES FOR THE PROVISION OF ANY
SERVICE NECESSARY TO CARRY OUT SUCH OFFICE'S POWERS AND DUTIES; AND
  (XI) NEGOTIATION WITH PARTICIPATING HEALTH INSURERS AND HEALTH MAINTE-
NANCE ORGANIZATIONS WITH REGARD TO THE ADMINISTRATIVE  EXPENSES  PORTION
OF  PREMIUM  RATES CHARGED FOR HEALTH CARE COVERAGE OFFERED TO MUNICIPAL
EMPLOYEES BY SUCH OFFICE.
  S 4. Clause (iii) of subparagraph (A) of paragraph 1 of subsection (c)
of section 4326 of the insurance law, as amended by section 56 of part D
of chapter 56 of the laws of 2013, is amended to read as follows:
  (iii) at least thirty percent of its employees receiving annual  wages
from  the  employer  at  a  level  equal to or less than thirty thousand
dollars. The thirty thousand dollar figure  shall  be  adjusted  period-
ically pursuant to subparagraph (D) of this paragraph[.]; OR
  S  5.  Paragraph  1 of subsection (c) of section 4326 of the insurance
law is amended by adding a new subparagraph (B-1) to read as follows:
  (B-1) A MUNICIPAL EMPLOYER  AS  DEFINED  IN  AND  IN  ACCORDANCE  WITH
SECTION FOUR THOUSAND THREE HUNDRED TWENTY-SIX-A OF THIS ARTICLE.
  S  6.  The  insurance law is amended by adding a new section 4326-a to
read as follows:
  S  4326-A.  STANDARDIZED  HEALTH  INSURANCE  CONTRACTS  FOR  MUNICIPAL
EMPLOYERS.  (A)  FOR  THE PURPOSES OF THIS SECTION, "MUNICIPAL EMPLOYER"
SHALL MEAN A MUNICIPAL CORPORATION OR A DISTRICT, AS DEFINED IN  SECTION
ONE  HUNDRED NINETEEN-N OF THE GENERAL MUNICIPAL LAW, OR ANY COMBINATION
THEREOF.
  (B) NOTWITHSTANDING ANY OTHER PROVISION OF LAW, ANY MUNICIPAL EMPLOYER
MAY OFFER ITS EMPLOYEES, THAT ARE NOT OTHERWISE QUALIFIED TO PURCHASE  A
STANDARDIZED  HEALTH  INSURANCE CONTRACT SPECIFIED IN SECTION FOUR THOU-
SAND THREE HUNDRED TWENTY-SIX OF  THIS  ARTICLE  SHALL  BE  ELIGIBLE  TO
PURCHASE  SUCH STANDARDIZED HEALTH INSURANCE CONTRACTS; PROVIDED, HOWEV-

S. 1994--A                          3

ER, THAT SUCH MUNICIPAL  EMPLOYERS  AND  EMPLOYEES  THAT  PURCHASE  SUCH
CONTRACTS   SHALL   NOT  DIRECTLY  OR  INDIRECTLY  RECEIVE  ANY  PREMIUM
REDUCTIONS DUE TO STOP LOSS FUND  SUBSIDIES  RECEIVED  BY  INSURERS  AND
HEALTH MAINTENANCE ORGANIZATIONS PURSUANT TO SECTION FOUR THOUSAND THREE
HUNDRED TWENTY-SEVEN OF THIS ARTICLE.
  (C)  ALL  HEALTH  MAINTENANCE ORGANIZATIONS THAT ARE REQUIRED TO OFFER
CONTRACTS PURSUANT TO SECTION FOUR THOUSAND THREE HUNDRED TWENTY-SIX  OF
THIS  ARTICLE  AND  ALL  COMPANIES  SUBJECT TO ARTICLE FORTY-TWO OF THIS
CHAPTER AND CORPORATIONS SUBJECT TO THIS ARTICLE THAT VOLUNTARILY  OFFER
CONTRACTS  PURSUANT TO SUCH SECTION SHALL NOT RECEIVE STOP LOSS FUNDS OR
REIMBURSEMENTS FOR CLAIMS LOSSES SUSTAINED BY STANDARDIZED HEALTH INSUR-
ANCE CONTRACTS ISSUED TO MUNICIPAL EMPLOYERS AND EMPLOYEES  PURSUANT  TO
THIS SECTION.
  (D)  PREMIUM  RATE  CALCULATIONS  FOR  CONTRACTS  ISSUED  TO MUNICIPAL
EMPLOYERS AND EMPLOYEES PURSUANT TO THIS SECTION SHALL BE SUBJECT TO THE
FOLLOWING:
  (1) COVERAGE MAY BE COMMUNITY RATED OR EXPERIENCE RATED,  AND  INCLUDE
RATE  TIERS  FOR  INDIVIDUALS, TWO ADULT FAMILIES AND AT LEAST ONE OTHER
FAMILY TIER. THE RATE DIFFERENCES MUST BE BASED UPON  THE  COST  DIFFER-
ENCES FOR THE DIFFERENT FAMILY UNITS AND THE RATE TIERS MUST BE UNIFORM-
LY APPLIED;
  (2)  IF  GEOGRAPHIC  RATING  AREAS ARE UTILIZED, SUCH GEOGRAPHIC AREAS
MUST BE REASONABLE AND IN A GIVEN CASE MAY INCLUDE A SINGLE COUNTY; AND
  (3) CLAIMS EXPERIENCE UNDER CONTRACTS ISSUED  TO  MUNICIPAL  EMPLOYERS
AND EMPLOYEES MAY BE POOLED SEPARATELY FOR RATE SETTING PURPOSES.
  S  7. Subsections (a) and (f) of section 4702 of the insurance law, as
added by chapter 689 of  the  laws  of  1994,  are  amended  and  a  new
subsection (i-1) is added to read as follows:
  (a) "Community rating" means a rating methodology in which the premium
equivalent  rate  for  all persons covered under a municipal cooperative
health benefit plan is the same, based upon the experience of the entire
pool of risks covered under the plan, without regard to age, sex, health
status or occupation and such that refunds, rebates,  credits  or  divi-
dends  based  upon  age,  sex,  health  status  or  occupation  are  not
permitted; PROVIDED, HOWEVER, THAT,  SUBJECT  TO  THE  APPROVAL  OF  THE
SUPERINTENDENT,   SUCH  PLAN  MAY  PROVIDE  AN  ACTUARIALLY  APPROPRIATE
REDUCTION IN PREMIUM RATES IN RETURN  FOR  AN  ENROLLEE'S  OR  INSURED'S
ADHERENCE  TO A BONA FIDE WELLNESS PROGRAM. A BONA FIDE WELLNESS PROGRAM
IS EITHER A RISK MANAGEMENT SYSTEM THAT IDENTIFIES  AT-RISK  POPULATIONS
OR ANY OTHER SYSTEMATIC PROGRAM OR COURSE OF MEDICAL CONDUCT WHICH HELPS
TO  PROMOTE  GOOD  HEALTH, HELPS TO PREVENT OR MITIGATE ACUTE OR CHRONIC
SICKNESS OR DISEASE, OR WHICH MINIMIZES ADVERSE HEALTH CONSEQUENCES  DUE
TO  LIFESTYLE.  SUCH WELLNESS PROGRAM SHALL DEMONSTRATE ACTUARIALLY THAT
IT ENCOURAGES THE GENERAL GOOD HEALTH  AND  WELL-BEING  OF  THE  COVERED
POPULATION. SUCH PLAN SHALL NOT REQUIRE SPECIFIC OUTCOMES AS A RESULT OF
AN ENROLLEE'S OR INSURED'S ADHERENCE TO THE APPROVED WELLNESS PROGRAM.
  (f) "Municipal corporation" means within the state of New York, a city
[with  a  population  of less than one million or], a county outside the
city of New  York,  town,  village,  board  of  cooperative  educational
services, school district, A FIRE DISTRICT, a public library, as defined
in section two hundred fifty-three of the education law, or district, as
defined in section one hundred nineteen-n of the general municipal law.
  (I-1)  "STOP-LOSS  INSURANCE"  MEANS  AN  INSURANCE POLICY WHEREBY THE
INSURER AGREES TO PAY CLAIMS OR INDEMNIFY A  MUNICIPAL  CORPORATION  FOR
LOSSES  INCURRED  UNDER  A  MUNICIPAL COOPERATIVE HEALTH BENEFIT PLAN IN

S. 1994--A                          4

EXCESS OF SPECIFIED LOSS LIMITS FOR INDIVIDUAL  CLAIMS  AND/OR  FOR  ALL
CLAIMS COMBINED, OR ANY SIMILAR ARRANGEMENT.
  S  8.  Paragraphs  2  and  3  of subsection (a) of section 4704 of the
insurance law, paragraph 2 as amended by section 3 of part A of  chapter
494  of  the laws of 2009 and paragraph 3 as added by chapter 689 of the
laws of 1994, are amended to read as follows:
  (2) except for any plan that provided medical, surgical  and  hospital
services  on  or  before  January  first,  nineteen hundred ninety-three
pursuant to a municipal cooperation agreement, the number  of  municipal
corporations  participating  in the municipal cooperative health benefit
plan shall be at least [three] TWO;
  (3) except for any plan that provided medical, surgical  and  hospital
services  to  at  least three hundred fifty covered employees (including
retirees and not including dependents) on or before January first, nine-
teen hundred ninety-three pursuant to a municipal cooperation agreement,
the number of covered employees (including retirees  and  not  including
dependents)  of  municipal  corporations  participating in the municipal
cooperative health benefit plan shall be at least  [two  thousand]  FIVE
HUNDRED;
  S  9. Subsection (b) of section 4704 of the insurance law, as added by
chapter 689 of the laws of 1994, is amended to read as follows:
  (b) The superintendent shall refuse to grant a certificate of authori-
ty to an applicant that fails to meet the requirements of this  section.
Notice  of refusal shall be in writing and shall set forth the basis for
the refusal. If the applicant submits a written request within  [thirty]
SIXTY  days  after  receipt of the notice of refusal, the superintendent
shall promptly conduct a hearing to give the applicant  the  opportunity
to show cause why the refusal should not be made final.
  S  10.  Paragraphs 1, 2 and 5 of subsection (d) of section 4705 of the
insurance law, paragraphs 1 and 5 as added by chapter 689 of the laws of
1994 and paragraph 2 as amended by chapter 681 of the laws of 2002,  are
amended to read as follows:
  (1)  shall design the plan OR PLANS of benefits provided OR OFFERED by
the municipal cooperative health benefit plan and prepare the plan docu-
ment and summary plan description in accordance with section four  thou-
sand  seven  hundred  nine of this article, AND SHALL INCLUDE A WELLNESS
PROGRAM OPTION;
  (2) may enter into an agreement with a contract administrator or other
service provider, determined by the governing board to be qualified,  to
receive,  investigate,  recommend,  audit,  approve  or  make payment of
claims under the municipal cooperative health  benefit  plan  OR  PLANS,
provided that:
  (A)  the  charges,  fees  and  other  compensation  for any contracted
services shall be clearly  stated  in  written  administrative  services
contracts  as required in subdivision six of section ninety-two-a of the
general municipal law;
  (B) payment for contracted services shall  be  made  only  after  such
services are rendered; AND
  (C)  no  member  of  the  plan's governing board or any member of such
member's immediate family shall be an owner, officer, director, partner,
or employee of any contract administrator retained by the plan[; and
  (D) all such agreements shall comply with the requirements of subdivi-
sion six of section ninety-two-a of the general municipal law].
  (5) shall prepare an  annual  budget  for  the  municipal  cooperative
health  benefit  plan  to  determine  the  premium  equivalent rates for

S. 1994--A                          5

participating municipal corporations to be deposited in the plan's joint
fund or funds during the fiscal year, provided that:
  (A)  the  governing board shall designate the bank or trust company in
which joint funds, including reserve funds,  are  to  be  deposited  and
which  shall  be located in this state, duly chartered under federal law
or the laws of this state; and
  (B) the governing board shall establish premium equivalent  rates  for
participating municipal corporations on the [bases] BASIS of a community
rating methodology filed with and approved by the superintendent and, in
determining the annual premium equivalent rates, the governing board:
  (i) may contract for necessary actuarial services to estimate expected
plan expenditures during the fiscal year;
  (ii)  shall  maintain  reserves  in  amounts equal to or exceeding the
minimum amounts required by section four thousand seven hundred  six  of
this article; and
  (iii)  shall  maintain  a  stop-loss policy or policies, to the extent
required by section four thousand seven hundred seven of this article;
  S 11. Subparagraphs (A) and (B) of paragraph 5 of  subsection  (a)  of
section  4706  of the insurance law, as added by chapter 689 of the laws
of 1994, are amended to read as follows:
  (A) five percent of the annualized earned premium  equivalents  during
the  current  fiscal year of a municipal cooperative health benefit plan
which consists of [five] TWO  or  more  participating  municipal  corpo-
rations  and  covers  [two  thousand] FIVE HUNDRED or more employees and
retirees; or
  (B) seven percent of the annualized earned premium equivalents  during
the current fiscal year of the municipal cooperative health benefit plan
which  consists  of  [four]  TWO or fewer participating municipal corpo-
rations or covers fewer than [two thousand] FIVE HUNDRED  employees  and
retirees.
  S 12. This act shall take effect on the first of January next succeed-
ing the date on which it shall have become a law.

Comments

Open Legislation comments facilitate discussion of New York State legislation. All comments are subject to moderation. Comments deemed off-topic, commercial, campaign-related, self-promotional; or that contain profanity or hate speech; or that link to sites outside of the nysenate.gov domain are not permitted, and will not be published. Comment moderation is generally performed Monday through Friday.

By contributing or voting you agree to the Terms of Participation and verify you are over 13.