A00739 Summary:

BILL NO    A00739 


SPONSOR    Steck

COSPNSR    McDonald, Skoufis, Arroyo, Fahy, Jaffee, Gunther, Walter, Montesano,
           Raia, Palmesano, Stirpe, Gottfried, Brabenec, Friend, Zebrowski,
           Mosley, Hawley, Galef, Barrett, Englebright, Brindisi, Blake, Giglio,
           Lifton, Hooper, Murray, Nojay, Peoples-Stokes

MLTSPNSR   Barclay, Brennan, Crouch, Duprey, Magee, McLaughlin, Schimel,
           Schimminger, Simon, Thiele

Authorizes all municipalities, with the consent of the county and the governing
body of such municipality, to join a county self-funded or self-insured health
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A00739 Actions:

BILL NO    A00739 

01/07/2015 referred to insurance
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A00739 Votes:

There are no votes for this bill in this legislative session.
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A00739 Memo:


TITLE  OF  BILL:    An act authorizing municipalities to join a county
self-funded or self-insured health plan

PURPOSE OR GENERAL IDEA OF BILL: Self-insurance  or  self-funding  for
health  insurance is significantly less expensive than contracting out
to private  health  insurers  but  requires  a  sufficient  number  of
employees  to  be  economically  possible.  Accordingly,  at  least 19
Counties   currently   self-insure.   On   the   other   hand,    most
municipalities,   including  school  districts,  do  not  have  enough
employees to self-insure. This bill allows them to  do  so  by  giving
them the potential to join County self-insurance plans.

SUMMARY  OF  PROVISIONS:  The  bill allows any municipality located in
whole or in part of a County to  join  a  County  self-insured  health
plan,  provided  that  the  County  and the municipality both agree to
allow the municipality do so.

JUSTIFICATION: Municipalities and the New York  State  Association  of
Counties  have  requested  and  support the bill. In addition, certain
health insurers are preparing for the inevitability of  self-insurance
plans,  by establishing departments that serve such plans. The role of
the private insurer is reduced, since the private  insurer  no  longer
handles  plan  funds, nor does it profit from plan funds, but is still
needed for claims processing and may charge fees for doing so.

LEGISLATIVE HISTORY: Articles 44 and 47 of the Insurance Law currently
allow municipalities to join together to  share  services,  presumably
including   self-insurance.   However,   the   process   is  extremely
cumbersome, so in practice such cooperation is virtually non-existent,
and is non-existent in  the  area  of  self-insurance.    Furthermore,
Article 47 requires community rating, whereas self-insurance plans can
be experience rated, so that they are less costly.

FISCAL  IMPLICATIONS:  Only positive. By bringing in more members to a
County self-insured plan, spreading of risk is enhanced, and costs  to
the  County  and  its  employees are potentially reduced. In addition,
municipal costs are reduced by paying less for health insurance, which
is critical in a tax cap  environment.  Employee  costs  are  likewise
reduced. For example, the Albany County self-insured health plan costs
employees approximately 50% less than NYSHIP.

EFFECTIVE DATE: This act shall take effect immediately
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A00739 Text:

                           S T A T E   O F   N E W   Y O R K


                              2015-2016 Regular Sessions

                                 I N  A S S E M B L Y

                                    January 7, 2015

       Introduced  by M. of A. STECK -- read once and referred to the Committee
         on Insurance

       AN ACT authorizing municipalities to join a county self-funded or  self-
         insured health plan


    1    Section 1. Notwithstanding articles 44 or 47 of the insurance  law  or
    2  any other provision of law to the contrary, a municipality is permitted,
    3  with  the  consent  of the county and the governing body of such munici-
    4  pality, to join a county self-funded or self-insured health plan in  any
    5  county  in which such municipality is located in whole or in part. Muni-
    6  cipality is defined as any city, town, village or  any  other  municipal
    7  corporation,  a  school  district or any governmental entity operating a
    8  public school, college or university, a public  improvement  or  special
    9  district, a public authority, commission, or public benefit corporation,
   10  or  any  other  public corporation, agency or instrumentality or unit of
   11  government which exercises governmental powers under  the  laws  of  the
   12  state  but  is  not a part of, nor a department of, nor an agency of the
   13  state.
   14    S 2. This act shall take effect immediately.

        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
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