Assembly Bill A10904

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   10904
 
                           I N  A S S E M B L Y
 
                               April 8, 2026
                                ___________
 
 Introduced  by M. of A. MOLITOR -- read once and referred to the Commit-
   tee on Insurance
 
 AN ACT to amend the insurance law, in relation to  enacting  the  "small
   business health plan act"
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Short title. This act shall  be  known  and  cited  as  the
 "small business health plan act".
   § 2. Subsection (h) of section 3216 of the insurance law is amended by
 adding a new paragraph 7 to read as follows:
   (7)  ANY  POLICY OR CONTRACT OFFERED TO OWNERS OR EMPLOYEES OF A SMALL
 BUSINESS, AS SUCH TERM IS DEFINED IN SECTION ONE HUNDRED  THIRTY-ONE  OF
 THE  ECONOMIC  DEVELOPMENT LAW, AS A BENEFIT OF OWNING OR BEING EMPLOYED
 BY SUCH BUSINESS.
   § 3. Section 3221 of the insurance law is  amended  by  adding  a  new
 subsection (w) to read as follows:
   (W)  THIS SECTION SHALL NOT APPLY TO ANY POLICY OR CONTRACT OFFERED TO
 OWNERS OR EMPLOYEES OF A SMALL BUSINESS, AS  SUCH  TERM  IS  DEFINED  IN
 SECTION  ONE  HUNDRED  THIRTY-ONE  OF THE ECONOMIC DEVELOPMENT LAW, AS A
 BENEFIT OF OWNING OR BEING EMPLOYED BY SUCH BUSINESS.
   § 4. The insurance law is amended by adding a new  section  3217-k  to
 read as follows:
   §  3217-K.  SMALL BUSINESS OWNER AND EMPLOYEE INSURANCE EXEMPTION. (A)
 FOR THE PURPOSES OF THIS SECTION, THE TERM "SMALL BUSINESS"  SHALL  HAVE
 THE  SAME MEANING AS SUCH TERM IS DEFINED IN SECTION ONE HUNDRED THIRTY-
 ONE OF THE ECONOMIC DEVELOPMENT LAW.
   (B) NOTWITHSTANDING ANY OTHER PROVISION OF LAW TO THE CONTRARY, INSUR-
 ERS MAY OFFER TO THE OWNERS OR EMPLOYEES OF A SMALL BUSINESS  INDIVIDUAL
 AND/OR  SMALL  GROUP ACCIDENT AND HEALTH INSURANCE POLICIES WHICH DO NOT
 PROVIDE FOR COVERAGES REQUIRED UNDER THIS CHAPTER WHERE SUCH SMALL BUSI-
 NESS IS SUBSIDIZING SUCH POLICIES. SUCH POLICIES MAY INCLUDE RIDERS  FOR
 ANY  COVERAGES,  INCLUDING COVERAGES REQUIRED FOR OTHER SIMILAR POLICIES
 UNDER THIS CHAPTER.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD15419-02-6
              

 A. 10904                            2
 
   § 5. Section 4303 of the insurance law is  amended  by  adding  a  new
 subsection (yy) to read as follows:
   (YY) THIS SECTION SHALL NOT APPLY TO ANY POLICY OR CONTRACT OFFERED TO
 OWNERS  OR  EMPLOYEES  OF  A  SMALL BUSINESS, AS SUCH TERM IS DEFINED IN
 SECTION ONE HUNDRED THIRTY-ONE OF THE ECONOMIC  DEVELOPMENT  LAW,  AS  A
 BENEFIT OF BEING EMPLOYED BY SUCH BUSINESS.
   §  6.  The  insurance law is amended by adding a new section 4306-j to
 read as follows:
   § 4306-J. SMALL BUSINESS EMPLOYEE INSURANCE  EXEMPTION.  (A)  FOR  THE
 PURPOSES  OF THIS SECTION, THE TERM "SMALL BUSINESS" SHALL HAVE THE SAME
 MEANING AS SUCH TERM IS DEFINED IN SECTION ONE HUNDRED THIRTY-ONE OF THE
 ECONOMIC DEVELOPMENT LAW.
   (B) NOTWITHSTANDING ANY OTHER PROVISION OF LAW TO THE CONTRARY, INSUR-
 ERS MAY OFFER TO THE OWNERS OR EMPLOYEES OF A SMALL BUSINESS  INDIVIDUAL
 AND/OR  SMALL  GROUP ACCIDENT AND HEALTH INSURANCE POLICIES WHICH DO NOT
 PROVIDE FOR COVERAGES REQUIRED UNDER THIS CHAPTER WHERE SUCH SMALL BUSI-
 NESS IS SUBSIDIZING SUCH POLICIES. SUCH POLICIES MAY INCLUDE RIDERS  FOR
 ANY  COVERAGES,  INCLUDING COVERAGES REQUIRED FOR OTHER SIMILAR POLICIES
 UNDER THIS CHAPTER.
   § 7. This act shall take effect immediately.