A09038 Summary:

BILL NO    A09038 

SAME AS    Same as S 6030, S51104

SPONSOR    Morelle

COSPNSR    

MLTSPNSR   

Amd SS3216, 3221, 4235, 4304 & 4305, Ins L

Provides for the extension of health insurance coverage to the unmarried child
of an insurered through the age of 29 years.

A09038 Actions:

BILL NO    A09038 

06/20/2009 referred to insurance
06/22/2009 reported referred to rules
06/22/2009 reported 
06/22/2009 rules report cal.676
06/22/2009 ordered to third reading rules cal.676
06/22/2009 message of necessity - 3 day message
06/22/2009 passed assembly
06/22/2009 delivered to senate
06/22/2009 REFERRED TO RULES
07/16/2009 SUBSTITUTED FOR S6030
07/16/2009 3RD READING CAL.876
07/16/2009 PASSED SENATE
07/16/2009 RETURNED TO ASSEMBLY
07/22/2009 delivered to governor
07/28/2009 signed chap.240

A09038 Votes:

BILL: A09038  DATE: 06/22/2009  MOTION:                       YEA/NAY: 140/000

Abbate  Y  Cahill  Y  Englebr Y  Hooper  Y  Maisel  Y  Powell  Y  Skartad Y
Alessi  Y  Calhoun Y  Errigo  Y  Hoyt    Y  Markey  ER Pretlow Y  Spano   Y
Alfano  Y  Camara  Y  Espaill Y  Hyer-Sp Y  Mayerso Y  Quinn   Y  Stirpe  Y
Amedore Y  Canestr Y  Farrell Y  Jacobs  Y  McDonou ER Rabbitt Y  Sweeney Y
Arroyo  ER Carrozz Y  Fields  Y  Jaffee  Y  McEneny Y  Raia    Y  Tedisco Y
Aubry   Y  Castro  Y  Finch   Y  Jeffrie Y  McKevit Y  Ramos   Y  Thiele  Y
Bacalle Y  Christe Y  Fitzpat Y  John    Y  Meng    Y  Reilich Y  Titone  Y
Ball    Y  Clark   Y  Gabrysz Y  Jordan  Y  Miller  Y  Reilly  Y  Titus   Y
Barclay Y  Colton  Y  Galef   Y  Kavanag Y  Millman Y  Rive J  Y  Tobacco Y
Barra   Y  Conte   Y  Gantt   Y  Kellner Y  Molinar Y  Rive N  ER Towns   Y
Barron  Y  Cook    Y  Gianari Y  Kolb    Y  Morelle Y  Rive PM Y  Townsen Y
Benedet Y  Corwin  Y  Gibson  Y  Koon    Y  Nolan   Y  Robinso Y  Walker  Y
Benjami Y  Crespo  Y  Giglio  Y  Lancman Y  Oaks    Y  Rosenth Y  Weinste Y
Bing    Y  Crouch  Y  Glick   Y  Latimer Y  O'Donne Y  Russell Y  Weisenb Y
Boyland Y  Cusick  Y  Gordon  Y  Lavine  Y  O'Mara  Y  Saladin Y  Weprin  Y
Boyle   Y  Cymbrow Y  Gottfri Y  Lentol  Y  Ortiz   Y  Sayward Y  Wright  Y
Bradley Y  DelMont Y  Gunther Y  Lifton  Y  Parment Y  Scarbor ER Zebrows Y
Brennan Y  DenDekk Y  Hawley  Y  Lope PD Y  Paulin  Y  Schimel Y  Mr Spkr Y
Brodsky Y  Destito Y  Hayes   Y  Lope VJ Y  Peoples ER Schimmi Y
Brook-K Y  Dinowit Y  Heastie Y  Lupardo Y  Peralta Y  Schroed Y
Burling Y  Duprey  Y  Hevesi  ER Magee   Y  Perry   ER Scozzaf Y
Butler  Y  Eddingt Y  Hikind  ER Magnare Y  Pheffer Y  Seminer ER

A09038 Memo:

BILL NUMBER:A9038

TITLE OF BILL:  An act to amend the insurance law, in relation to the
provision of health insurance coverage to the unmarried child of an
insured through the age of twenty-nine years

PURPOSE:

This bill expands access to health insurance by allowing unmarried chil-
dren through age 29, regardless of financial dependence, to be covered
under a parent's group health insurance policy.

SUMMARY OF PROVISIONS:

Section 1 of the bill amends Insurance Law S 3216 to require commercial
insurers to make available an option for consumers purchasing individual
health insurance to cover unmarried dependents through age 29 without
regard to financial dependence. The young adults must not be eligible
for coverage under employer sponsored insurance and they must live, work
or reside in New York State or in the service area of the insurer.  The
option must be extended at policy inception and at the first anniversary
date following the effective date of the provisions.

Section 2 amends Insurance Law S 3221 to require commercial insurers
that provide group health insurance coverage to extend an option to
continue coverage to unmarried children who have "aged off" of their
parents' group health insurance policies.  The "dependent children" may
continue to be covered under their parents' group policy through age 29
as long as they are not eligible for employer sponsored health insurance
coverage and are not covered by Medicare. Such children are not required
to be financially dependent on their parents to elect this benefit.

Section 2 of the bill also provides that employers shall not be required
to pay the premiums for dependent children electing this continuation
option. This section of the bill also allows an employee, group member
or dependent child to elect to purchase group health insurance coverage:
(1) within 60 days following the date coverage would otherwise terminate
due to age, under the terms of the parent's policy; (2) within 60 days
after meeting the definition of "dependent child;" or (3) during an
annual 30-day open enrollment period. Dependent children whose coverage
terminated prior to the effective date of the bill would have a period
of 12 months from the effective date to elect coverage.

Section 2 of the bill additionally requires an insurer to submit reports
as the Superintendent of Insurance ("Superintendent") may request, in a
form and manner to be prescribed by the Superintendent.

Section 3 of the bill amends Insurance Law S 4235 to require commercial
insurers to make available an option for consumers of group health
insurance to cover unmarried dependents through age 29 without regard to

financial dependence. The option must be extended at policy inception
and annually upon the policy's anniversary date.

Section 4 of the bill amends Insurance Law S 4304 to require not-for-
profit corporations and health maintenance organizations ("HMOs") to
extend the same make available option for consumers of group health
insurance to cover dependents through age 29 without regard to financial
dependence as is extended by section 1 for commercial insurers.

Sections 5 and 6 of the bill amend Insurance Law S 4304 to require not-
for-profit corporations and HMOs that offer individual and group remit-
tance contracts to include coverage options for unmarried dependent
children through age 29 under the same terms and conditions as commer-
cial insurers.

Section 7 of the bill amends Insurance Law S 4305 to require not-for-
profit corporations and HMOs that offer group contracts to include a
continuation option for unmarried dependent children through age 29,
also under the same terms and conditions as commercial insurers.

Section 8 of the bill provides that the bill take effect on September 1,
2009 and apply to contracts issued, renewed, modified, altered or
amended on or after that date.

EXISTING LAW:

Current law pertaining to group contracts does not delineate a minimum
age to which an insurer must extend dependent coverage in a family
contract.

With regard to group remittance contracts, Insurance Law S 4304(d)(1)
limits coverage to children under the age of 25, at the option of the
insurer. If the child is incapable of self-sustaining employment due to
disability, the age limitations do not apply and the child would be
eligible to remain covered under the contract.

LEGISLATIVE HISTORY:

This is a new bill.

STATEMENT OF SUPPORT:

Uninsured young adults between the age of 19 through 29 represent 31
percent of New York State's total uninsured population. These individ-
uals -- sometimes referred to as "young invincibles" -- often lose their
health coverage at the age of 19, or upon graduation from high school or
college. Young adults are often employed in entry-level jobs and may
work for employers that do not provide (or contribute to the cost of)
health insurance.  As such, young adults are often unable to afford
individual direct payment insurance and frequently choose to go unin-
sured.

This bill expands access to health insurance through a COBRA-like bene-
fit for young adults by requiring commercial insurers, non-profit corpo-
rations and HMOs to offer an option to continue coverage for unmarried
young adults through age 29, regardless of financial dependence, under a
parent's group health insurance policy. The bill would not require
employers to contribute to the cost of coverage.

This bill also extends a make available option to individuals, employers
and other group health insurance consumers to permit them to buy family
coverage which includes coverage for dependents through age 29 subject
to certain criteria. Insurers must extend the option to purchase at
policy inception and, for group policies, upon each anniversary date.

BUDGET IMPLICATIONS:

This bill will not have a fiscal impact to the State.

EFFECTIVE DATE:

This bill takes effect September 1, 2009 and will apply to contracts
issued, renewed, modified, altered and amended on or after such date.