senate Bill S6633

2013-2014 Legislative Session

Authorizes all municipalities to join a county self-funded or self-insured health plan

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Archive: Last Bill Status - In Committee


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

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Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Feb 19, 2014 referred to insurance

Co-Sponsors

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S6633 - Bill Details

See Assembly Version of this Bill:
A8362A
Current Committee:
Senate Insurance
Law Section:
Insurance

S6633 - Bill Texts

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Authorizes all municipalities, with the consent of the county and the governing body of such municipality, to join a county self-funded or self-insured health plan.

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BILL NUMBER:S6633

TITLE OF BILL: An act authorizing municipalities to join a county
self-funded or self-insured health plan

PURPOSE OR GENERAL IDEA OF BILL:

Self-insurance or self-funding for health insurance is significantly
less expensive than contracting out to private health insurers but
requires a sufficient number of employees to be economically possible.
Accordingly, at least 19 Counties currently self-insure. On the other
hand, most municipalities, including school districts, do not have
enough employees to self-insure. This bill allows them to do so by
giving them the potential to join County self-insurance plans.

SUMMARY OF PROVISIONS:

The bill allows any municipality located in whole or in part of a
County to join a County self-insured health plan, provided that the
County and the municipality both agree to allow the municipality do
so.

JUSTIFICATION:

Municipalities and the New York State Association of Counties have
requested and support the bill. In addition, certain health insurers
are preparing for the inevitability of self-insurance plans, by
establishing departments that serve such plans. The role of the
private insurer is reduced, since the private insurer no longer
handles plan funds, nor does it profit from plan funds, but is still
needed for claims processing and may charge fees for doing so.

LEGISLATIVE HISTORY:

Articles 44 and 47 of the Insurance Law currently allow municipalities
to join together to share services, presumably including
self-insurance. However, the process is extremely cumbersome, so in
practice such cooperation is virtually non-existent, and is
non-existent in the area of self-insurance. Furthermore, Article 47
requires community rating, whereas self-insurance plans can be
experience rated, so that they are less costly.

FISCAL IMPLICATIONS:

Only positive. By bringing in more members to a County self-insured
plan, spreading of risk is enhanced, and costs to the County and its
employees are potentially reduced. In addition, municipal costs are
reduced by paying less for health insurance, which is critical in a
tax cap environment. Employee costs are likewise reduced. For example,
the Albany County self-insured health plan costs employees
approximately 50% less than NYSHIP.

EFFECTIVE DATE:

Immediately.


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

                                  6633

                            I N  S E N A T E

                            February 19, 2014
                               ___________

Introduced  by Sens. GRIFFO, VALESKY, FARLEY, LIBOUS, RITCHIE, ZELDIN --
  read twice and ordered printed, and when printed to  be  committed  to
  the Committee on Insurance

AN  ACT authorizing municipalities to join a county self-funded or self-
  insured health plan

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

  Section  1.  Notwithstanding articles 44 or 47 of the insurance law or
any other provision of law to the contrary, a municipality is permitted,
with the consent of the county and the governing body  of  such  munici-
pality,  to join a county self-funded or self-insured health plan in any
county in which such municipality is located in whole or in part.  Muni-
cipality  is  defined  as any city, town, village or any other municipal
corporation, a school district or any governmental  entity  operating  a
public  school,  college  or university, a public improvement or special
district, a public authority, commission, or public benefit corporation,
or any other public corporation, agency or instrumentality  or  unit  of
government  which  exercises  governmental  powers under the laws of the
state but is not a part of, nor a department of, nor an  agency  of  the
state.
  S 2. This act shall take effect immediately.





 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD13268-03-4

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