NY State Senate Bill 2017-S6572A

Senate Bill S6572A

Signed By Governor

2017-2018 Legislative Session

Relates to the definition of small group for the purposes of health insurance policies and contracts; repealer

download bill text pdf

Archive: Last Bill Status Via A8264 - Signed by Governor

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

View Actions

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Oct 23, 2017	signed chap.370
Oct 11, 2017	delivered to governor
Jun 20, 2017	returned to assembly passed senate 3rd reading cal.2077 substituted for s6572a
Jun 20, 2017	substituted by a8264 ordered to third reading cal.2077
Jun 12, 2017	print number 6572a
Jun 12, 2017	amend (t) and recommit to rules
Jun 05, 2017	referred to rules

Votes

- Jun 20, 2017 - Floor Vote
  A8264
  
  63
  
  Aye
  
  0
  
  Nay
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Floor Vote: Jun 20, 2017
      
      aye (63)
      
      Addabbo Jr.
      
      Akshar
      
      Alcantara
      
      Amedore
      
      Avella
      
      Bailey
      
      Benjamin
      
      Bonacic
      
      Boyle
      
      Breslin
      
      Brooks
      
      Carlucci
      
      Comrie
      
      Croci
      
      DeFrancisco
      
      Diaz
      
      Dilan
      
      Felder
      
      Flanagan
      
      Funke
      
      Gallivan
      
      Gianaris
      
      Golden
      
      Griffo
      
      Hamilton
      
      Hannon
      
      Helming
      
      Hoylman-Sigal
      
      Jacobs
      
      Kaminsky
      
      Kennedy
      
      Klein
      
      Krueger
      
      LaValle
      
      Lanza
      
      Larkin
      
      Latimer
      
      Little
      
      Marcellino
      
      Marchione
      
      Montgomery
      
      Murphy
      
      O'Mara
      
      Ortt
      
      Parker
      
      Peralta
      
      Persaud
      
      Phillips
      
      Ranzenhofer
      
      Ritchie
      
      Rivera
      
      Robach
      
      Sanders Jr.
      
      Savino
      
      Serino
      
      Serrano
      
      Seward
      
      Squadron
      
      Stavisky
      
      Stewart-Cousins
      
      Tedisco
      
      Valesky
      
      Young
  Jun 20, 2017 - Rules Committee Vote
  S6572A
  
  25
  
  Aye
  
  0
  
  Nay
  
  0
  
  Aye with Reservations
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Rules Committee Vote: Jun 20, 2017
      
      aye (25)
      
      Bonacic
      
      Breslin
      
      Carlucci
      
      DeFrancisco
      
      Dilan
      
      Flanagan
      
      Gianaris
      
      Griffo
      
      Hannon
      
      Kennedy
      
      Krueger
      
      LaValle
      
      Lanza
      
      Larkin
      
      Little
      
      Marcellino
      
      Montgomery
      
      Parker
      
      Ranzenhofer
      
      Robach
      
      Savino
      
      Seward
      
      Squadron
      
      Stewart-Cousins
      
      Valesky

Bill Amendments

Original

A (Active)

2017-S6572 - Details

See Assembly Version of this Bill:: A8264
Law Section:: Insurance Law
Laws Affected:: Amd §5, Chap 589 of 2015; amd §5, Chap 588 of 2015

2017-S6572 - Summary

Extends provisions of law relating to catastrophic or reinsurance coverage issued to certain small groups.

2017-S6572 - Sponsor Memo

                                 BILL NUMBER:  S6572

 TITLE OF BILL :  An act to amend chapter 589 of the laws of 2015
amending the insurance law relating to catastrophic or reinsurance
coverage issued to certain small groups, in relation to the
effectiveness thereof; to amend chapter 588 of the laws of 2015
amending the insurance law relating to catastrophic or reinsurance
coverage issued to certain small groups, in relation to the
effectiveness thereof; and in relation to directing the superintendent
of financial services to add certain other health insurance matters to
the assessment study of the impact of the prohibition on the sale of
stop loss, catastrophic and reinsurance coverage to the small group
market

 PURPOSE :

The purpose of this bill is to allow stop loss, catastrophic and
reinsurance coverages to remain in effect for certain self-funded
small groups for one additional year.

 SUMMARY OF PROVISIONS :

Sections 1 and 2 of the bill would allow for the continuation for an
additional year of the sale of stop loss, catastrophic or reinsurance
coverages, which were in effect on January 1, 2015, despite a general
prohibition which would prevent insurers from selling this kind of

coverage to groups with 51-100 employees, members or subscribers as of
January 1, 2016.

Section 3 of the bill would add certain additional health insurance
matters to be included for general review in the assessment study
being conducted by a consultant to the department of financial
services (DFS) pursuant to the provisions of section 7 of chapter 12
of the laws of 2016.

Section 4 of the bill sets forth the effective date.

 JUSTIFICATION :

The federal Patient Protection and Affordable Care Act (ACA) expanded
the "small group" market up to 100 employees, members or subscribers
effective January 1, 2016, to which New York conformed its laws.
Expanding the size of small group up to 100 employees, members or
subscribers in New York required the sale of community-rated policies
and prohibited the sale of stop loss, reinsurance or catastrophic
coverages to mid-sized groups with 51-100 employees, members or
subscribers for the first time. This included both private sector
firms, labor union groups, municipal cooperatives and school and
library district consortiums.

This bill would extend for one additional year until December 31,
2019, the grandfathering of mid-sized groups with 51-100 employees,
members or subscribers that currently self-fund with stop loss
coverage, as long as they keep their coverage in effect. This will
allow such groups additional time to transition into the small group
market while awaiting the DFS assessment study. The bill also adds
certain additional matters to be reviewed as part of the ongoing stop
loss insurance assessment study in order to measure the impact of such
matters upon the availability, affordability and quality of coverage
in the small group market.

 LEGISLATIVE HISTORY :

New bill.

 FISCAL IMPLICATIONS :
None.

 EFFECTIVE DATE :
Immediately.

2017-S6572 - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   6572
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                               June 5, 2017
                                ___________
 
 Introduced  by  Sen.  SEWARD -- read twice and ordered printed, and when
   printed to be committed to the Committee on Rules
 
 AN ACT to amend chapter 589 of the laws of 2015 amending  the  insurance
   law relating to catastrophic or reinsurance coverage issued to certain
   small groups, in relation to the effectiveness thereof; to amend chap-
   ter  588  of  the  laws of 2015 amending the insurance law relating to
   catastrophic or reinsurance coverage issued to certain  small  groups,
   in relation to the effectiveness thereof; and in relation to directing
   the  superintendent  of financial services to add certain other health
   insurance matters to the assessment study of the impact of the  prohi-
   bition on the sale of stop loss, catastrophic and reinsurance coverage
   to the small group market
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Section 5 of chapter 589 of the laws of 2015, amending  the
 insurance law relating to catastrophic or reinsurance coverage issued to
 certain  small  groups, as amended by chapter 12 of the laws of 2016, is
 amended to read as follows:
   § 5. This act shall take effect on the  same  date  and  in  the  same
 manner  as  [a]  chapter 588 of the laws of 2015 [amending the insurance
 law relating to catastrophic or reinsurance coverage issued  to  certain
 small  groups,  as  proposed  in  legislative bills numbers S.5928-A and
 A.8134-A], takes effect [and shall be deemed repealed three years there-
 after].
   § 2. Section 5 of chapter 588 of the laws of 2015, amending the insur-
 ance law relating to catastrophic  or  reinsurance  coverage  issued  to
 certain  small  groups, as amended by chapter 12 of the laws of 2016, is
 amended to read as follows:
   § 5. This act shall take  effect  immediately;  and  shall  be  deemed
 repealed [3] 4 years after it shall have become a law.

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD04876-04-7

 S. 6572                             2
 
   §  3.  In  addition  to  the  review of the self-funding and stop loss
 insurance matters prescribed in section 7 of chapter 12 of the  laws  of
 2016,  the final report required under such section shall also include a
 general review of certain  other  health  insurance  matters  and  their
 impact  upon  consumers  in  the  small  group market, including but not
 limited to, the availability, affordability and regulation of stop  loss
 insurance for mid-sized groups of 51-100 employees, members or subscrib-
 ers by adjacent or sister states, the impact on current premium rates by
 the  2016  addition  of mid-sized groups of 51-100 employees, members or
 subscribers to the small group market, the impact of  the  diversion  by
 professional employer organizations (PEOs) of certain employees, members
 or  subscribers from the small group market, the change of situs outside
 the state of certain small groups for purposes of being underwritten  as
 a  large  group to obtain more favorable premium rates, the reduction of
 premium rates in the  community-rated  small  group  market  based  upon
 considerations  other than sound actuarial practices and principles, and
 how these matters have  impacted  the  availability,  affordability  and
 quality  of  coverage  of comprehensive health insurance products in the
 small group market for employers, labor unions, municipal  corporations,
 school  or  library  districts,  political  subdivisions,  and any other
 affected small groups, consortiums or cooperatives and their  respective
 employees, members or subscribers.
   § 4. This act shall take effect immediately.

2017-S6572A (ACTIVE) - Details

See Assembly Version of this Bill:: A8264
Law Section:: Insurance Law
Laws Affected:: Amd §5, Chap 589 of 2015; amd §5, Chap 588 of 2015

2017-S6572A (ACTIVE) - Summary

Extends provisions of law relating to catastrophic or reinsurance coverage issued to certain small groups.

2017-S6572A (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S6572A

 TITLE OF BILL :  An act to amend chapter 589 of the laws of 2015,
amending the insurance law relating to catastrophic or reinsurance
coverage issued to certain small groups, in relation to the
effectiveness thereof; and to amend chapter 588 of the laws of 2015,
amending the insurance law relating to catastrophic or reinsurance
coverage issued to certain small groups, in relation to the
effectiveness thereof

 PURPOSE :

The purpose of this bill is to allow stop loss, catastrophic and
reinsurance coverages to remain in effect for certain self-funded
small groups for one additional year.

 SUMMARY OF PROVISIONS :

Section one of the bill would extend for an additional year the
provisions of chapter 589 of the laws of 2015, as amended by chapter
12 of the laws of 2016, which provided that small groups between the
size of 51-100 who had reinsurance policies in effect on 1/1/2015 may
continue to eligible to renew such policy or purchase re-insurance
between 1/1/2016 and 1/1/2017 and renew such policy thereafter, and
which also exempted municipal corporations with member employers with
100 or fewer employees from small group rating standards.

Section two of the bill would extend for an additional year the
provisions of chapter 588 of the laws of 2015, as amended by chapter
12 of the laws of 2016, which provided that small groups between the
size of 51-100 who had reinsurance policies in effect on 1/1/2015 may
continue to eligible to renew such policy or purchase re-insurance
between 1/1/2016 and 1/1/2017 and renew such policy thereafter, and
which also exempted municipal corporations with member employers with
100 or fewer employees from small group rating standards.

Section 3 of the bill sets forth the effective date.

 JUSTIFICATION :

The federal Patient Protection and Affordable Care Act (ACA) expanded
the "small group" market up to 100 employees, members or subscribers
effective January 1, 2016, to which New York conformed its laws.
Expanding the size of small group up to 100 employees, members or
subscribers in New York required the sale of community-rated policies
and prohibited the sale of stop loss, reinsurance or catastrophic
coverages to midsized groups with 51-100 employees, members or
subscribers for the first time. This included both private sector
firms, labor union groups, municipal cooperatives and school and
library district consortiums.

This bill would extend for one additional year until December 31,
2019, the grandfathering of mid-sized groups with 51-100 employees,
members or subscribers that currently self-fund with stop loss
coverage, as long as they keep their coverage in effect. This will
allow such groups additional time to transition into the small group
market while awaiting the DFS assessment study.

 LEGISLATIVE HISTORY :

New bill.

 FISCAL IMPLICATIONS :

None.

 EFFECTIVE DATE :
Immediately.

2017-S6572A (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  6572--A
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                               June 5, 2017
                                ___________
 
 Introduced  by  Sen.  SEWARD -- read twice and ordered printed, and when
   printed to be  committed  to  the  Committee  on  Rules  --  committee
   discharged, bill amended, ordered reprinted as amended and recommitted
   to said committee
 
 AN  ACT to amend chapter 589 of the laws of 2015, amending the insurance
   law relating to catastrophic or reinsurance coverage issued to certain
   small groups, in relation to the effectiveness thereof; and  to  amend
   chapter  588  of the laws of 2015, amending the insurance law relating
   to catastrophic  or  reinsurance  coverage  issued  to  certain  small
   groups, in relation to the effectiveness thereof
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Section 5 of chapter 589 of the laws of 2015, amending  the
 insurance law relating to catastrophic or reinsurance coverage issued to
 certain  small  groups, as amended by chapter 12 of the laws of 2016, is
 amended to read as follows:
   § 5. This act shall take effect on the  same  date  and  in  the  same
 manner  as  a  chapter  of  the  laws of 2015 amending the insurance law
 relating to catastrophic or reinsurance coverage issued to certain small
 groups, as proposed in legislative bills numbers S.5928-A and  A.8134-A,
 takes effect and shall be deemed repealed [three] FOUR years thereafter.
   § 2. Section 5 of chapter 588 of the laws of 2015, amending the insur-
 ance  law  relating  to  catastrophic  or reinsurance coverage issued to
 certain small groups, as amended by chapter 12 of the laws of  2016,  is
 amended to read as follows:
   §  5.  This  act  shall  take  effect immediately; and shall be deemed
 repealed [3] 4 years after it shall have become a law.
   § 3. This act shall take effect immediately.
 
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD04876-05-7

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