New York Governor David Patterson proposed healthcare reform legislation aimed to make health insurance more accessible and affordable for all New Yorkers. “More than two million of our residents do not have health insurance, partly because of high cost of coverage for businesses, individuals and families. We must take the necessary steps to improve our broken healthcare system” states Governor Patterson.

WHAT THIS MEANS TO YOU AS AN EMPLOYER
Governor Patterson has introduced four bills to the New York state legislature. The details of this legislation are listed below:

Expand COBRA for Employees to 36 months: Under this bill, the period of time for employees who lose their jobs to continue their health insurance under COBRA will increase from 18 to 36 months. COBRA generally applies to employers with 20 or more employees. New York also has a “mini-COBRA” law which requires that employers with less than 20 employees offer the same continuation of coverage.

Insure Dependents Through Age 29: This bill will require that carriers allow single children under the age of 29 (regardless of financial dependence) to be covered under a parent’s group health insurance policy. The premiums would be paid for by the families, and would be more cost effective because coverage is part of a group policy rather than an individual policy.

Prior Rate Approval: This bill will require prior approval of health insurance rates by the Superintendent of Insurance. The current system, known as “file and use”, allows carriers to increase premium rates without justifying the increase to the New York State Insurance Department.

Managed Care Reform: This legislation will make sure consumers receive the care they need and protect them against inappropriately delayed or denied claims.

ERISA versus Plans Governed by NY State Law: With respect to self-insured plans, the federal Employee Retirement Income Security Act of 1974, as amended (“ERISA”) preempts all state law mandates. As such, self-insured plans would be exempt from this proposed requirement.

WHAT SHOULD I DO NEXT?
Corporate Synergies will continue to release information and guidance as to how the carriers will be administering this new legislation as it is released. For more information on this reform initiative, please CLICK HERE.

If you have any additional questions regarding the information within this eCommunication, please call please call Corporate Synergies at 1.866.CSG.1719 or click here to contact us today.

This alert is a legislative update designed to help you administer your employee benefits program and is not legal counsel. Please consult with an attorney for legal advice