BILL NUMBER:  S382

 TITLE OF BILL :
An act to amend the insurance law, in relation to blanket accident and
health policies issued to a college, school or other institution of
learning


 PURPOSE OR GENERAL IDEA OF BILL :
To provide the certificate holder or student under blanket health and
accident policies issued to a school, college or other accredited
institution of higher learning with written notice of the date
coverage terminates under the policy and a description of coverage
options which may be available following the termination.

 SUMMARY OF SPECIFIC PROVISIONS :
Section one of the bill amends subparagraph (c) of paragraph 3 of
subsection (a) of section 4237 of the Insurance Law to require the
insurer, issuing a blanket health and accident policy to a school,
college or other accredited institution of higher learning, to provide
written notice to a certificate holder or student covered under such
policy of the date coverage terminates, and a description of coverage
options available following the termination. The notice is required to
be provided at the commencement of coverage and not less than
forty-five days prior to the termination of coverage.

              

Section two of the bill provides an immediate effective date for the
legislation.

 JUSTIFICATION :
Under the current law, an insurer offering blanket accident and health
policies to schools or universities has no obligation to provide a
student covered under the policy with written notice of the
termination. As a result, some students are unaware of the termination
of their coverage, and fail to exercise continuation options which may
be available to them or make other arrangements before lapses in
coverage could lead to new preexisting condition waiting periods. This
bill would provide both notification of termination and a description
of other coverage options. Similar information is provided to workers
or dependents of workers who lose eligibility under employer-sponsored
plans. Providing this information will allow students -- particularly
graduating college students who may also lose eligibility under their
family's plans -- to take advantage of options available to them and
plan ways to meet their future health care needs.

 LEGISLATIVE HISTORY :
2007/2008 - S.727A Remained in the Senate Committee on Insurance
2005/2006 - S.1377 Remained in the Senate Committee on Insurance
2003/2004 - S.5450-A Remained in Senate Committee on Insurance/A.8754A
Passed Assembly

 FISCAL IMPLICATIONS :
None.

 EFFECTIVE DATE :
This act shall take effect September 1, 2009.