NY State Senate Bill S5581A

Archive: Last Bill Status - Signed by Governor

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

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Actions

view actions (20)

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Aug 20, 2021	signed chap.406
Aug 09, 2021	delivered to governor
Jun 03, 2021	returned to senate passed assembly ordered to third reading rules cal.342 substituted for a6245a
May 24, 2021	referred to ways and means returned to assembly repassed senate
May 11, 2021	amended on third reading (t) 5581a
May 11, 2021	vote reconsidered - restored to third reading returned to senate recalled from assembly
May 03, 2021	referred to insurance delivered to assembly passed senate
Apr 28, 2021	advanced to third reading
Apr 27, 2021	2nd report cal.
Apr 26, 2021	1st report cal.742
Mar 11, 2021	referred to insurance

Votes

Bill Amendments

Original

A (Active)

Original

A (Active)

Co-Sponsors

S5581 - Details

See Assembly Version of this Bill:: A6245
Law Section:: Insurance
Laws Affected:: Amd §5, Chap 589 of 2015; amd §5, Chap 588 of 2015
Versions Introduced in Other Legislative Sessions:: 2019-2020: S7927
2023-2024: S3613

S5581 - Summary

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

S5581 - Sponsor Memo

 
BILL NUMBER: S5581

SPONSOR: BRESLIN
 
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 making such provisions permanent; and to
amend chapter 588 of the laws of 2015, amending the insurance law relat-
ing to catastrophic or reinsurance coverage issued to certain small
groups, in relation to making such provisions permanent

 
PURPOSE:

To make provisions of law relating to catastrophic or reinsurance cover-
age issued to certain small groups permanent.

 
SUMMARY OF PROVISIONS:

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 588 of the laws of 2019 is
amended to be made permanent.

Section 2. Section 5 of chapter 588 of the laws of 2015, amending the
insurance law relating to catastrophic or reinsurance coverage issued to
certain small groups, as amended by chapter 202 of the laws of 2019 is
amended to be made permanent.

 
JUSTIFICATION:

Prior to the passage of the Affordable Care Act (ACA), New York State
and federal law allowed employers with fifty or more eligible individ-
uals to join together in various forms to purchase experience rated
health insurance coverage for their employees and participate in Health
Insurance Consortiums or Trusts.

Upon passage of the ACA, each state was required, for a time to redefine
a "small group employer" to 1-100 from the current definition of 1-50.
In 2015, New York State changed its definition of a 'small group employ-
er' to mean one to one hundred employees.  Accordingly, the law, among
other restrictions, would result in any employer falling below the one
hundred employee threshold to no longer have the ability to participate
in an experience rated health insurance plan and instead must partic-
ipate in a community rated plan, thereby forcing them out of their
consortium or trusts.

It is estimated that at least 100 school districts have between 51-100
members. If these districts were forced out of their health care consor-
tiums they would have to go to the small group market which would
significantly increase their health care costs. Not only would the
districts with 51-100 members impacted, but so would all those remaining
in their consortiums because there would be few members in their consor-
tium and less buying power. Moreover, many of these small districts have
many retirees on their health insurance plans who are not counted in the
employee count but would also enter the community rated market.

Because of the significant financial and operational impact this change
would cause for affected districts, several laws have been enacted that
have allowed districts to remain in their health care consortiums on a
temporary basis. This bill, if enacted, would make this authorization
permanent, and eliminate the uncertainty that accompanies short term
reauthorization.

 
LEGISLATIVE HISTORY:

2015 - Chapter 588 & 589

2016 - Chapter 12

2017 - Chapter 370

2018 - Chapter 457

2019 - Chapter 202

2020 - Chapter 58

 
FISCAL IMPLICATIONS:

To be determined

 
EFFECTIVE DATE:
This act shall take effect immediately

S5581 - Bill Text download pdf

 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5581
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                              March 11, 2021
                                ___________
 
 Introduced  by  Sen. BRESLIN -- read twice and ordered printed, and when
   printed to be committed to the Committee on Insurance
 
 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 making such provisions permanent; 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 making such provisions permanent
 
   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 section 1 of item E of subpart H  of
 part  XXX  of  chapter  58  of  the  laws of 2020, is amended to read as
 follows:
   § 5. This act shall take effect on the  same  date  and  in  the  same
 manner  as  chapter  588 of the laws of 2015, takes effect [and shall be
 deemed repealed seven 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 section 2 of item E of subpart H of
 part XXX of chapter 58 of the laws  of  2020,  is  amended  to  read  as
 follows:
   §  5.  This  act  shall  take effect immediately[; and shall be deemed
 repealed 7 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.
                                                            LBD07647-01-1

Co-Sponsors

S5581A (ACTIVE) - Details

See Assembly Version of this Bill:: A6245
Law Section:: Insurance
Laws Affected:: Amd §5, Chap 589 of 2015; amd §5, Chap 588 of 2015
Versions Introduced in Other Legislative Sessions:: 2019-2020: S7927
2023-2024: S3613

S5581A (ACTIVE) - Summary

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

S5581A (ACTIVE) - Sponsor Memo

 
BILL NUMBER: S5581A

SPONSOR: BRESLIN
 
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:

To extend for two additional years provisions of law relating to
catastrophic or reinsurance coverage issued to certain small groups.

 
SUMMARY OF PROVISIONS:

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 588-of the laws of 2019 is
amended to extend the provisions for three years (2025).

Section 2. Section 5 of chapter 588 of the laws of 2015, amending the
insurance law relating to catastrophic' or reinsurance coverage issued
to certain small groups, as amended by chapter 202 of the laws of 2019
is amended to extend the provisions for three years (2025).

 
JUSTIFICATION:

Prior to the passage of the Affordable Care Act (ACA), New York State
and federal law allowed employers with fifty or more eligible individ-
uals to join together in various forms to purchase experience rated
health insurance coverage for their employees and participate in Health
Insurance Consortiums or Trusts.  Upon passage of the ACA, each state
was required, for a time to redefine a "small group employer" to 1-100
from the current definition of 1-50.  In 2015, New York State changed
its definition of a 'small group employer' to mean one to one hundred
employees. Accordingly, the law, among other restrictions, would result
in any employer falling below the one hundred employee threshold to no
longer have the ability to participate in an experience rated health
insurance plan and instead must participate in a community rated plan,
thereby forcing them out of their consortium or trusts.

It is estimated that at least 100 school districts have between 51-100
members. If these districts were forced out of their health care consor-
tiums they would have to go to the small group market which would
significantly increase their health care costs. Not only would the
districts with 51-100 members impacted, but so would all those remaining
in their consortiums because there would be few members in their consor-
tium and less buying power. Moreover, many of these small districts have
many retirees on their health insurance plans who are not counted in the
employee count but would also enter the community rated market.  Because
of the significant financial and operational impact this change would
cause for affected districts, several laws have been enacted that have
allowed districts to remain in their health care consortiums on a tempo-
rary basis.

 
LEGISLATIVE HISTORY:

2015 -Chapter 588 & 589

2016 - Chapter 12

2017 - Chapter 370

2018 - Chapter 457

2019 - Chapter 202

2020 - Chapter 58

 
FISCAL IMPLICATIONS:

To be determined

 
EFFECTIVE DATE:
This act shall take effect immediately

S5581A (ACTIVE) - Bill Text download pdf

 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  5581--A
     Cal. No. 742
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                              March 11, 2021
                                ___________
 
 Introduced  by  Sens.  BRESLIN,  HARCKHAM, HELMING, JORDAN, MAY, STEC --
   read twice and ordered printed, and when printed to  be  committed  to
   the  Committee on Insurance -- reported favorably from said committee,
   ordered to first and second report, ordered to a third reading, passed
   by Senate and delivered to the Assembly, recalled, vote  reconsidered,
   restored  to  third  reading, amended and ordered reprinted, retaining
   its place in the order of third reading
 
 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 section 1 of item E of subpart H  of
 part  XXX  of  chapter  58  of  the  laws of 2020, is amended to read as
 follows:
   § 5. This act shall take effect on the  same  date  and  in  the  same
 manner  as  chapter  588  of the laws of 2015, takes effect and shall be
 deemed repealed [seven] TEN 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 section 2 of item E of subpart H of
 part XXX of chapter 58 of the laws  of  2020,  is  amended  to  read  as
 follows:
   §  5.  This  act  shall  take  effect immediately; and shall be deemed
 repealed [7] TEN 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.
                                                            LBD07647-05-1

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The New York State Senate

senate Bill S5581A

Sponsored By

Archive: Last Bill Status - Signed by Governor

Your Voice

Actions

Votes

May 24, 2021 - floor Vote

Floor Vote: May 24, 2021

May 3, 2021 - floor Vote

Floor Vote: May 3, 2021

Apr 26, 2021 - Insurance committee Vote

Committee Vote: Apr 26, 2021

Bill Amendments

Co-Sponsors

S5581 - Details

S5581 - Summary

S5581 - Sponsor Memo

S5581 - Bill Text download pdf

Co-Sponsors

S5581A (ACTIVE) - Details

S5581A (ACTIVE) - Summary

S5581A (ACTIVE) - Sponsor Memo

S5581A (ACTIVE) - Bill Text download pdf

Comments

senate Bill S5581A

Share this bill

Sponsored By

Archive: Last Bill Status - Signed by Governor

Your Voice

Actions

Votes

May 24, 2021 - floor Vote

Floor Vote: May 24, 2021

May 3, 2021 - floor Vote

Floor Vote: May 3, 2021

Apr 26, 2021 - Insurance committee Vote

Committee Vote: Apr 26, 2021

Bill Amendments

Co-Sponsors

S5581 - Details

S5581 - Summary

S5581 - Sponsor Memo

S5581 - Bill Text download pdf

Co-Sponsors

S5581A (ACTIVE) - Details

S5581A (ACTIVE) - Summary

S5581A (ACTIVE) - Sponsor Memo

S5581A (ACTIVE) - Bill Text download pdf

Comments