Requires insurers offering renewal of certain Medicare supplemental insurance policies or providing notification of a change in premiums of such policies to notify policyholders of the availability of policies offered by such insurer with similar benefits at a comparable premium or the ability of such policyholder to purchase a different policy without the pre-existing condition waiting period; applies to policies for which such insurers no longer accept new contracts but continue to renew for existing policyholders.
S T A T E O F N E W Y O R K
________________________________________________________________________
9139
I N A S S E M B L Y
January 29, 2016
___________
Introduced by M. of A. COOK, GOTTFRIED, CYMBROWITZ, WEPRIN -- Multi-
Sponsored by -- M. of A. BRENNAN, GLICK, HOOPER, PEOPLES-STOKES,
PERRY -- read once and referred to the Committee on Insurance
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.
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
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
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