A00739 Summary:

BILL NO    A00739 

SAME AS    SAME AS S04466

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

MLTSPNSR   Barclay, Brennan, Brook-Krasny, 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
plan.
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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:

BILL NUMBER:A739

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
       ________________________________________________________________________

                                          739

                              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

         THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
       BLY, DO ENACT AS FOLLOWS:

    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.
                                                                  LBD04405-01-5
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