A00640 Summary:

BILL NOA00640
 
SAME ASSAME AS S02695
 
SPONSORWeprin
 
COSPNSR
 
MLTSPNSRPerry
 
Amd SS3221 & 4305, Ins L; add S4407-a, Pub Health L
 
Requires insurers to provide certificate holders with at least thirty days prior written notice of termination of group health insurance coverage.
Go to top    

A00640 Actions:

BILL NOA00640
 
01/09/2013referred to insurance
01/08/2014referred to insurance
Go to top

A00640 Floor Votes:

There are no votes for this bill in this legislative session.
Go to top

A00640 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                           640
 
                               2013-2014 Regular Sessions
 
                   IN ASSEMBLY
 
                                       (Prefiled)
 
                                     January 9, 2013
                                       ___________
 
        Introduced by M. of A. WEPRIN -- read once and referred to the Committee
          on Insurance
 
        AN ACT to amend the insurance law and the public health law, in relation
          to notification of termination of group health insurance
 

          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
 
     1    Section 1. Subsection (a) of section 3221  of  the  insurance  law  is
     2  amended by adding a new paragraph 17 to read as follows:
     3    (17) (A) That the insurer shall require the policyholder to provide it
     4  with  the names and residential addresses of all individuals who because
     5  of their employee or membership status  are  certificate  holders  under
     6  such  policy,  and  to update such information at least annually; and in
     7  the event the insurer terminates such policy, shall  give  each  certif-
     8  icate holder at least thirty days prior written notice of termination of
     9  coverage,  by  mailing  such  notice  to  the  last provided residential

    10  address for such certificate holder; provided, however, that such notice
    11  shall not be required where the  policyholder  has:  (1)  provided  such
    12  certificate  holder  at  least  thirty  days prior written notice of the
    13  termination of coverage, by mailing such notice to the certificate hold-
    14  er's last known residential address, or, if the  certificate  holder  is
    15  represented by a labor organization, provided the representative of such
    16  labor  organization with such written notice, or (2) has contracted with
    17  another insurer to provide similar coverage  for  the  same  certificate
    18  holders,  and  has  provided  certificate  holders  with the name of the
    19  substituted insurer. No termination of a group  policy  or  contract  of

    20  health,  or  accident  and health insurance shall become effective until
    21  thirty days after the mailing of such notice of termination contract, if
    22  required.
    23    (B) The insurer shall include with such notice a complete statement of
    24  the rights of the certificate holder under the termination of the policy
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD02917-01-3

        A. 640                              2
 
     1  as to coverage for illness, accident and treatment  occurring  prior  to
     2  and subsequent to the termination date, and such other rights of certif-

     3  icate  holders  as may exist under the contract or policy or pursuant to
     4  paragraph one of subsection (e) of this section.
     5    (C)  Upon  written  request, the holder of the policy being terminated
     6  shall reimburse the insurer for all reasonable and necessary costs asso-
     7  ciated with providing such notice to certificate holders.
     8    § 2. Section 4305 of the insurance law is  amended  by  adding  a  new
     9  subsection (n) to read as follows:
    10    (n) (1) A group contract issued pursuant to this section shall contain
    11  a  provision that the insurer shall require the group contract holder to
    12  provide it with the names and residential addresses of  all  individuals
    13  who because of their employee or membership status are certificate hold-

    14  ers under such policy, and to update such information at least annually;
    15  and  in  the  event  the insurer terminates such policy, shall give each
    16  certificate holder at least thirty days prior written notice  of  termi-
    17  nation of coverage, by mailing such notice to the last provided residen-
    18  tial  address  for such certificate holder; provided, however, that such
    19  notice shall not be required  where  the  group  policyholder  has:  (A)
    20  provided  such  certificate  holders  at least thirty days prior written
    21  notice of the termination of coverage, by mailing such  notice  to  such
    22  certificate holder's last known residential address, or, if such certif-
    23  icate holder is represented by a labor organization, provided the repre-

    24  sentative  of  such  labor organization with such written notice, or (B)
    25  has contracted with another insurer to provide similar coverage for  the
    26  same certificate holders, and has provided such certificate holders with
    27  the name of the substituted insurer. No termination of a group policy or
    28  contract of health, or accident and health insurance shall become effec-
    29  tive  until  thirty days after the mailing of such notice of termination
    30  contract, if required.
    31    (2) The insurer shall include with such notice a complete statement of
    32  the rights of the certificate holder under the termination of the policy
    33  as to coverage for illness, accident and treatment  occurring  prior  to
    34  and subsequent to the termination date, and such other rights of certif-

    35  icate  holders  as may exist under the contract or policy or pursuant to
    36  paragraph one of subsection (d) of this section.
    37    (3) Upon written request, the holder of the group policy being  termi-
    38  nated shall reimburse the insurer for all reasonable and necessary costs
    39  associated with providing such notice to certificate holders.
    40    §  3.  The public health law is amended by adding a new section 4407-a
    41  to read as follows:
    42    § 4407-a. Group contracts; notification of cancellation  requirements.
    43  1.  A  health  maintenance  organization shall require a policyholder to
    44  provide it with the names and residential addresses of  all  individuals
    45  who  because  of their employee or membership status are members in such

    46  health maintenance organization, and to update such information at least
    47  annually; and in the event the health  maintenance  organization  termi-
    48  nates  such  policy,  shall  give  each such member at least thirty days
    49  prior written notice of termination of coverage, by mailing such  notice
    50  to  the  last  provided  residential  address for such member; provided,
    51  however, that such notice shall not be required where  the  policyholder
    52  has:  (a) provided such member at least thirty days prior written notice
    53  of the termination of coverage, by mailing such notice to such  member's
    54  last  known  residential  address, or, if the member is represented by a
    55  labor organization, provided the representative of such labor  organiza-

    56  tion with such written notice, or (b) has contracted with another health

        A. 640                              3
 
     1  maintenance  organization or insurer to provide similar coverage for the
     2  same members, and has provided members with the name of the  substituted
     3  health  maintenance  organization  or insurer. No termination of a group
     4  policy  or  contract  of  health, or accident and health insurance shall
     5  become effective until thirty days after the mailing of such  notice  of
     6  termination contract, if required.
     7    2.  The health maintenance organization shall include with such notice
     8  a complete statement of the rights of the member under  the  termination
     9  of  the policy as to coverage for illness, accident and treatment occur-

    10  ring prior to and subsequent to the termination  date,  and  such  other
    11  rights  of members as may exist under the contract or policy or pursuant
    12  to this article and article forty-three of the insurance law.
    13    3. Upon written request, the holder of  the  policy  being  terminated
    14  shall  reimburse  the health maintenance organization for all reasonable
    15  and necessary costs associated with providing such notice to members.
    16    § 4. This act shall take effect on the ninetieth day  after  it  shall
    17  have become a law.
Go to top