Requires the superintendent of financial services to conduct a review of mandated benefits in effect as of December 31, 2024 and their impact on insurance premiums and to conduct a cost analysis of legislation mandating new insurance benefits to examine the impact on insurance premiums prior to the adoption of such legislation.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A8364
SPONSOR: Weprin TITLE OF BILL:
An act to amend the financial services law, in relation to requiring the
superintendent of financial services to conduct a review of mandated
benefits and their impact on insurance premiums and to conduct a cost
analysis of legislation mandating new insurance benefits
PURPOSE:
The legislation would require the Department of Financial Services to
conduct a review of mandated health benefits required by New York State
law in effect as of December 31, 2024, as well as require the Department
to conduct a cost analysis of the impact of any new mandated health
benefit on health insurance premiums before the new requirement could
take effect.
SUMMARY OF PROVISIONS:
Section (d) would require the Department of Financial Services to
conduct a review of mandated benefits required by New York State law in
effect as of December 31, 2024 and issue a report detailing both the
individual and cumulative costs of such mandates on insurance premiums.
The report would be due 12 months from the date on which this provision
takes effect.
Section (e) would require the Department of Financial Services to
conduct a cost analysis of legislation mandating new insurance benefits
to examine the impact on insurance premiums prior to the adoption of
such legislation. Any new mandated benefit would not take effect until
the Department completes its analysis and the review is made publicly
available for review and comment.
JUSTIFICATION:
More than 30 states have laws that require an evaluation of mandated
benefits, analyzing the impact on the cost of health care coverage. In
2007, New York created the New York State Health Care Quality and Cost
Containment Commission, which was charged with analyzing the cost and
efficacy of proposed mandated benefits. Unfortunately, the Commission
has never been seated.
The legislation would establish a formal mechanism for the Department of
Financial Services to review the fiscal impact of mandated benefits.
This would provide for an independent, and evidence-based analysis for
policymakers, employers and consumers to understand the impact of new
mandated benefits on the cost of coverage and ensure that those costs
are accurately reflected in premiums.
LEGISLATIVE HISTORY:
This is a new bill.
FISCAL IMPLICATIONS:
None.
EFFECTIVE DATE:
This act shall take effect immediately.
STATE OF NEW YORK
________________________________________________________________________
8364
2025-2026 Regular Sessions
IN ASSEMBLY
May 13, 2025
___________
Introduced by M. of A. WEPRIN -- read once and referred to the Committee
on Insurance
AN ACT to amend the financial services law, in relation to requiring the
superintendent of financial services to conduct a review of mandated
benefits and their impact on insurance premiums and to conduct a cost
analysis of legislation mandating new insurance benefits
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Section 301 of the financial services law is amended by
2 adding two new subsections (d) and (e) to read as follows:
3 (d) The superintendent shall be required to conduct a review of
4 mandated benefits required by New York state law in effect as of Decem-
5 ber thirty-first, two thousand twenty-four and issue a report detailing
6 both the individual and cumulative costs of such mandates on insurance
7 premiums. Such report shall be due one year from the date on which this
8 subsection takes effect.
9 (e) The superintendent shall be required to conduct a cost analysis of
10 legislation mandating new insurance benefits to examine the impact on
11 insurance premiums prior to the adoption of such legislation. New legis-
12 lation passed but not yet considered by the governor shall not be deemed
13 in full force and effect until such cost analysis from the superinten-
14 dent is completed and made publicly available for review and comment.
15 The provisions of this subsection shall apply to all legislation passed
16 on or after the date which this subsection takes effect.
17 § 2. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD11944-01-5
