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A06740 Summary:BILL NO A06740
SAME AS Same as S 3068
SPONSOR Morelle (MS)
COSPNSR Silver, John, Gottfried, Farrell, Canestrari, Weprin
MLTSPNSR Abbate, Alessi, Arroyo, Barron, Bing, Boyland, Bradley, Brook-Krasny,
Cahill, Castro, Christensen, Clark, Colton, Cook, Cusick, Cymbrowitz,
DelMonte, DenDekker, Destito, Dinowitz, Eddington, Espaillat, Fields,
Galef, Gianaris, Glick, Gordon, Gunther, Jacobs, Jaffee, Kavanagh,
Kellner, Latimer, Lavine, Lifton, Lopez V, Magee, Magnarelli, Maisel,
Markey, McEneny, Meng, Millman, Nolan, O'Donnell, Paulin,
Peoples-Stokes, Peralta, Pheffer, Reilly, Rivera N, Robinson,
Rosenthal, Russell, Schimel, Schimminger, Schroeder, Skartados,
Spano, Stirpe, Sweeney, Titone, Titus, Towns, Weinstein, Weisenberg,
Zebrowski
Amd SS3221, 4304 & 4305, Ins L
Relates to a special enrollment period; authorizes an individual who does not
have an election of continuation of coverage in effect on the effective date of
the American Recovery and Reinvestment Act of 2009, but who would be an
assistance eligible individual under Title III of such act if such election
were in effect, may elect continuation of coverage.
A06740 Actions:BILL NO A06740
03/11/2009 referred to insurance
03/17/2009 reported referred to rules
03/17/2009 reported
03/17/2009 rules report cal.9
03/17/2009 ordered to third reading rules cal.9
03/17/2009 passed assembly
03/17/2009 delivered to senate
03/17/2009 REFERRED TO INSURANCE
03/19/2009 SUBSTITUTED FOR S3068
03/19/2009 3RD READING CAL.110
03/19/2009 MOTION TO AMEND LOST
03/19/2009 MOTION TO AMEND LOST
03/19/2009 PASSED SENATE
03/19/2009 RETURNED TO ASSEMBLY
03/19/2009 delivered to governor
03/20/2009 signed chap.7
A06740 Votes:BILL: A06740 DATE: 03/17/2009 MOTION: YEA/NAY: 143/000
Abbate Y Cahill Y Englebr Y Hooper Y Maisel Y Powell Y Skartad Y
Alessi Y Calhoun Y Errigo Y Hoyt Y Markey Y Pretlow Y Spano Y
Alfano Y Camara Y Espaill Y Hyer-Sp Y Mayerso Y Quinn ER Stirpe Y
Amedore Y Canestr Y Farrell Y Jacobs Y McDonou Y Rabbitt Y Sweeney Y
Arroyo Y Carrozz ER 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 ER Millman Y Rive J Y Tobacco Y
Barra Y Conte Y Gantt ER Kellner Y Molinar Y Rive N Y Towns Y
Barron Y Cook Y Gianari Y Kolb Y Morelle Y Rive PM Y Townsen Y
Benedet Y Corwin Y Giglio Y Koon Y Nolan Y Robinso ER Walker Y
Benjami Y Crouch Y Glick Y Lancman Y Oaks Y Rosenth Y Weinste Y
Bing Y Cusick ER Gordon Y Latimer Y O'Donne Y Russell Y Weisenb Y
Boyland Y Cymbrow Y Gottfri Y Lavine Y O'Mara Y Saladin Y Weprin Y
Boyle Y DelMont Y Greene Y Lentol Y Ortiz Y Sayward Y Wright Y
Bradley Y DenDekk Y Gunther Y Lifton Y Parment Y Scarbor Y Zebrows Y
Brennan Y Destito Y Hawley Y Lope PD Y Paulin Y Schimel Y Mr Spkr Y
Brodsky Y Diaz Y Hayes Y Lope VJ Y Peoples Y Schimmi Y
Brook-K Y Dinowit Y Heastie Y Lupardo Y Peralta Y Schroed Y
Burling Y Duprey Y Hevesi Y Magee Y Perry Y Scozzaf Y
Butler ER Eddingt Y Hikind Y Magnare Y Pheffer Y Seminer Y
A06740 Memo:BILL NUMBER:A6740
TITLE OF BILL:
An act to amend the insurance law, in relation to a special enrollment
period
PURPOSE:
This bill would expand access to the nine-month federal stimulus subsidy
of 65 percent of continuation premiums available to employees that have
been involuntarily terminated from their jobs between September 1, 2008
and December 31, 2009.
SUMMARY OF PROVISIONS:
Section 1 of the bill adds a new Insurance Law S 3221(m)(7) to allow
workers that did not elect state continuation coverage offered by a
commercial insurer prior to the enactment of the American Recovery and
Reinvestment Act of 2009 (ARRA) to enroll during a special election
period if they are now eligible for premium assistance under ARRA.
Section 1 of the bill also requires assistance eligible individuals that
did not elect continuation upon initial eligibility to elect such cover-
age within 60 days of receiving the notice required by ARRA. Their group
administrator (or other involved entity) must provide such individuals
with notice of this special enrollment period within 60 days of the date
of enactment of ARRA.
Section 1 of the bill further requires continuation coverage elected
during the special enrollment period to be effective as of the first
coverage period following the enactment of ARRA.
Section 1 of the bill additionally requires the period between the qual-
ifying event which entitled the assistance eligible individual to state
continuation coverage and the first date of coverage following the
enactment of ARRA to be disregarded for the purposes of determining if a
pre-existing condition waiting period is applicable.
Section 2 of the bill amends Insurance Law S 4304 to extend the same
special enrollment period and access to state continuation coverage to
workers with state continuation options through group remittance
contracts offered by not-for-profit corporations and health maintenance
organizations (HMOs).
Section 3 of the bill amends Insurance Law S 4305 to extend the same
special enrollment period and access to state continuation coverage to
workers with state continuation options through group contracts offered
by not-for-profit corporations and HMO's.
Section 4 of the bill provides that the bill would take effect imme-
diately.
EXISTING LAW:
Insurance Law S 3221(m) permits individuals covered under group or blan-
ket accident and health insurance policies that are not subject to
federal COBRA law to elect to participate in state continuation coverage
in the event of job loss. Such individuals must elect state continuation
coverage within 60 days following the later of: (1) the event which
qualifies them for coverage; or (2) receiving notice of right to elect
such coverage.
Insurance Law S 4304(k) sets forth provisions similar to those of Insur-
ance Law S 3221(m), permitting the election of state continuation cover-
age for individual contracts with a hospital service, health service or
medical expense indemnity corporation for which the premiums are paid by
a remitting agent of a group.
Insurance Law S 4305(e) sets forth provisions similar to those of Insur-
ance Law S 3221(m), permitting the election of state continuation cover-
age for group contracts issued by a hospital service, health service or
medical expense indemnity corporation.
Insurance Law SS 3232 and 4318 pertain to pre-existing conditions for
individual, group or blanket accident and health insurance policies.
LEGISLATIVE HISTORY:
This is a new bill.
STATEMENT IN SUPPORT:
The American Recovery and Reinvestment Tax Act of 2009 (ARRA) extended a
nine-month subsidy for 65 percent of COBRA health insurance premiums for
employees involuntarily terminated from their jobs between September 1,
2008 and December 31, 2009. The subsidy is administered through a
payroll tax credit. Income limitations apply, with subsidies phasing out
for those with annual incomes over $125,000 (single) or $250,000
(married).
New York State's "mini-COBRA" law requires small employers (with less
than twenty employees) that are not impacted by federal COBRA require-
ments to offer a state continuation benefit. While ARRA extended the 65
percent premium subsidy to state continuation plans, it did not explic-
itly extend a "special election period" to those covered under state
continuation laws. In order for New York to maximize the federal subsi-
dies and ensure that New Yorkers employed by small firms have the same
benefit as those who work for large firms, this bill amends the State's
continuation law to include a special election period that mirrors the
protections ARRA included for federal COBRA plans.
This bill extends a special election period for people laid off between
September 1, 2008 and the date ARRA was signed into law (February 17,
2009) who did not elect state continuation benefits when initially
eligible, most likely due to its cost. This provides a second opportu-
nity to elect coverage now that federal premium assistance has become
available. The group administrator must notify these people of the
subsidy option within 60 days of the date ARRA was enacted and they must
elect coverage within 60 days of when notice was provided.
The bill also requires the period beginning on the date that the enrol-
lee was involuntarily terminated and ending when the coverage starts to
be disregarded for the purpose of determining whether a pre-existing
condition exclusion period applies to the state continuation coverage.
This extends an additional protection to state continuation coverage,
consistent with the protections ARRA extended to federal COBRA plans.
This protection will help those impacted by medical conditions arising
prior to the effective date of the newly elected COBRA Coverage.
BUDGET IMPLICATIONS:
This bill will have no fiscal impact on the State.
EFFECTIVE DATE:
This bill would take effect immediately.
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