NY State Senate Bill 2017-S6624

Archive: Last Bill Status - In Senate Committee Insurance Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 03, 2018	referred to insurance returned to senate died in assembly
Jun 21, 2017	referred to insurance delivered to assembly passed senate
Jun 12, 2017	ordered to third reading cal.1576
Jun 07, 2017	referred to rules

Votes

- Jun 21, 2017 - Floor Vote
  S6624
  
  59
  
  Aye
  
  3
  
  Nay
  
  1
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Floor Vote: Jun 21, 2017
      
      aye (59)
      
      Addabbo Jr.
      
      Akshar
      
      Alcantara
      
      Amedore
      
      Avella
      
      Bailey
      
      Benjamin
      
      Bonacic
      
      Boyle
      
      Breslin
      
      Carlucci
      
      Comrie
      
      Croci
      
      DeFrancisco
      
      Diaz
      
      Dilan
      
      Felder
      
      Flanagan
      
      Funke
      
      Gallivan
      
      Gianaris
      
      Golden
      
      Griffo
      
      Hamilton
      
      Hannon
      
      Helming
      
      Jacobs
      
      Kaminsky
      
      Kennedy
      
      Klein
      
      Krueger
      
      LaValle
      
      Lanza
      
      Larkin
      
      Latimer
      
      Little
      
      Marcellino
      
      Marchione
      
      Montgomery
      
      Murphy
      
      O'Mara
      
      Ortt
      
      Parker
      
      Peralta
      
      Persaud
      
      Phillips
      
      Ranzenhofer
      
      Ritchie
      
      Rivera
      
      Robach
      
      Savino
      
      Serino
      
      Serrano
      
      Seward
      
      Stavisky
      
      Stewart-Cousins
      
      Tedisco
      
      Valesky
      
      Young
      
      nay (3)
      
      Brooks
      
      Hoylman-Sigal
      
      Squadron
      
      absent (1)
      
      Sanders Jr.
  Jun 12, 2017 - Rules Committee Vote
  S6624
  
  21
  
  Aye
  
  3
  
  Nay
  
  1
  
  Aye with Reservations
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Rules Committee Vote: Jun 12, 2017
      
      aye (21)
      
      Bonacic
      
      Carlucci
      
      DeFrancisco
      
      Dilan
      
      Flanagan
      
      Gianaris
      
      Griffo
      
      Hannon
      
      Kennedy
      
      LaValle
      
      Lanza
      
      Larkin
      
      Little
      
      Marcellino
      
      Montgomery
      
      Ranzenhofer
      
      Robach
      
      Savino
      
      Seward
      
      Stewart-Cousins
      
      Valesky
      
      nay (3)
      
      Breslin
      
      Krueger
      
      Parker
      
      aye wr (1)
      
      Squadron

2017-S6624 (ACTIVE) - Details

See Assembly Version of this Bill:: A32
Current Committee:: Senate Insurance
Law Section:: Insurance Law
Laws Affected:: Amd §§3231 & 4308, Ins L
Versions Introduced in Other Legislative Sessions:: 2015-2016: S4540, A7439
2019-2020: A206
2021-2022: A1062

2017-S6624 (ACTIVE) - Summary

Relates to rating of individual and small group health insurance policies.

2017-S6624 (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S6624

 TITLE OF BILL :

An act to amend the insurance law, in relation to rating of individual
and small group health insurance policies

 PURPOSE :

To amend the insurance law, relating to the health insurance premium
rate setting process currently used by the Department of Financial
Services ("DFS")

 SUMMARY OF PROVISIONS :

Sections 1 and 2 of the bill amend sections 3231 and 4308 of the
insurance law to allow health plans to use the "file and use"
methodology for any adjustments to a health insurance rate filing or
application for commercial community rated products.  New insurance
products will continue to need approval from DFS through the "prior
approval" process.

Section 3 is the effective date.

 JUSTIFICATION :

The "prior approval" process that existed before the enactment of the
"file and use" system in 1996 was highly susceptible to arbitrary rate
suppression, not based on sound actuarial principles, and compromised
the solvency of some insurers. In 2010, when DFS proposed
reinstituting prior approval, DFS provided assurances to the
Legislature that it would not revert to the politicization of rate
setting and would instead use a system that would yield actuarially
sound rates. Unfortunately, the rate setting process has once again
become subject to arbitrary rate reductions and DFS has made it a
priority to keep premium increases to below the rate of growth of
health care costs. The demise of Health Republic, which left thousands
of individuals scrambling for coverage throughout the state, was due,
in large part, to the failure of the prior approval rate setting
process. The current prior approval process led to average rate
reductions of 50 percent and 30 percent in the past two years. During
that same time period plans servicing New Yorkers on the state
exchange lost hundreds of millions of dollars. If the process is not
changed, the ongoing suppression of rates will affect the stability of
the commercial insurance market going forward. The stability of the
health insurance marketplace is needed to protect consumers by
providing access and choice as well as certainty of coverage.

 LEGISLATIVE HISTORY :

2016: S.4540-A - Passed in the Senate
2015: S.4540/A.7439 - Passed in the Senate

 FISCAL IMPLICATIONS :

None.

 EFFECTIVE DATE :
Immediately.

2017-S6624 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   6624
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                               June 7, 2017
                                ___________
 
 Introduced  by  Sen.  SEWARD -- read twice and ordered printed, and when
   printed to be committed to the Committee on Rules
 
 AN ACT to amend the insurance law, in relation to rating  of  individual
   and small group health insurance policies
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Subparagraph (A) of  paragraph  1  of  subdivision  (e)  of
 section 3231 of the insurance law, as amended by chapter 107 of the laws
 of 2010 and as further amended by section 104 of part A of chapter 62 of
 the laws of 2011, is amended to read as follows:
   (A) An insurer desiring to increase or decrease premiums for any poli-
 cy  form  subject to this section shall submit a rate filing or applica-
 tion to the superintendent.
   An insurer shall send written notice of the proposed rate  adjustment,
 [including  the  specific  change  requested,] to each policy holder and
 certificate holder affected by the adjustment on or before the date  the
 rate  filing  or  application  is  submitted  to the superintendent. The
 notice shall prominently include mailing and website addresses for  both
 the  department  of  financial  services and the insurer through which a
 person may, within thirty days from the date the rate filing or applica-
 tion is submitted to  the  superintendent,  contact  the  department  of
 financial  services  or  insurer to receive additional information or to
 submit written comments to the department of financial services  on  the
 rate filing or application. The superintendent shall establish a process
 to  post  on  the department's website, in a timely manner, all relevant
 written comments received pertaining to rate  filings  or  applications.
 The  insurer  shall  provide  a copy of the notice to the superintendent
 with the rate filing or application. The superintendent shall immediate-
 ly cause the  notice  to  be  posted  on  the  department  of  financial
 services' website. The superintendent shall determine whether the filing
 or  application  shall become effective as filed, shall become effective
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD01676-01-7

 S. 6624                             2
 
 as modified, or shall be disapproved. The superintendent may  modify  or
 disapprove  the  rate  filing or application if the superintendent finds
 that the premiums are unreasonable, excessive, inadequate,  or  unfairly
 discriminatory,  and may consider the financial condition of the insurer
 when approving, modifying or disapproving any premium adjustment.  [The]
 PROVIDED,  HOWEVER,  ANY ADJUSTMENT TO A RATE FILING OR APPLICATION MUST
 BE IN ACCORDANCE WITH GENERALLY ACCEPTED ACTUARIAL PRINCIPLES AND  PRAC-
 TICES,  AND  MUST  BE  APPROPRIATE  FOR THE POPULATION TO BE COVERED AND
 SERVICES TO BE FURNISHED UNDER THE POLICY. AN INITIAL determination [of]
 REGARDING THE RATE FILING OR APPLICATION SHALL BE  MADE  BY  the  super-
 intendent  [shall  be supported by sound actuarial assumptions and meth-
 ods, and shall be rendered in writing between] NO LATER THAN thirty [and
 sixty] days from the date the rate filing or application is submitted to
 the superintendent. THE SUPERINTENDENT'S INITIAL DETERMINATION SHALL  BE
 PROVIDED  TO AN INSURER IN WRITING WITHIN THE THIRTY DAY TIME PERIOD AND
 SHALL DESCRIBE IN DETAIL THE ACTUARIAL ASSUMPTIONS AND METHODS  USED  IN
 THE  SUPERINTENDENT'S  DETERMINATION.  Should the superintendent require
 additional information from the insurer in order to make [a] AN  INITIAL
 determination,  the  superintendent shall require the insurer to furnish
 such information, and in such event, the [sixty] THIRTY  days  shall  be
 tolled  and shall resume as of the date the insurer furnishes the infor-
 mation to the superintendent. [If the superintendent requests additional
 information less than ten days from the expiration  of  the  sixty  days
 (exclusive  of  tolling),  the  superintendent  may extend the sixty day
 period an additional twenty days to make a determination. The] FOLLOWING
 THE ISSUANCE OF THE INITIAL DETERMINATION, AN INSURER SHALL HAVE FIFTEEN
 DAYS TO APPEAL THE DETERMINATION IN WRITING. IF AN INITIAL RATE DETERMI-
 NATION IS APPEALED, THE SUPERINTENDENT SHALL HAVE FIFTEEN DAYS TO  ISSUE
 A REVISED DETERMINATION. IF THE INITIAL DETERMINATION IS NOT APPEALED BY
 AN  INSURER,  IT SHALL BECOME FINAL FIFTEEN DAYS AFTER IT IS ISSUED. ALL
 FINAL RATE DETERMINATIONS SHALL BE CERTIFIED BY AN ACTUARY DESIGNATED BY
 THE SUPERINTENDENT WHO MEETS THE QUALIFICATION STANDARDS ESTABLISHED  BY
 THE  AMERICAN  ACADEMY  OF  ACTUARIES  AND FOLLOW THE PRACTICE STANDARDS
 ESTABLISHED BY THE ACTUARIAL STANDARDS BOARD. NOTWITHSTANDING THE  FORE-
 GOING,  THE  application  or  rate  filing  will be deemed approved if a
 determination is not  rendered  within  the  time  allotted  under  this
 section.  An  insurer  shall  not  implement  a  rate adjustment THAT IS
 APPROVED BY THE SUPERINTENDENT unless  the  insurer  provides  at  least
 [sixty]  THIRTY  days  advance  [written]  notice  of  the [premium rate
 adjustment approved by the superintendent] ADJUSTMENT, EITHER THROUGH  A
 POSTING  ON  ITS  WEBSITE OR BY WRITTEN NOTICE to each policy holder and
 certificate holder affected by the rate adjustment.
   § 2. Paragraph 2 of subdivision (c) of section 4308 of  the  insurance
 law,  as  amended  by  chapter  107  of  the laws of 2010 and as further
 amended by section 104 of part A of chapter 62 of the laws of  2011,  is
 amended to read as follows:
   (2)  A  corporation  desiring to increase or decrease premiums for any
 contract subject to this subsection shall submit a rate filing or appli-
 cation to the superintendent. A corporation shall send written notice of
 the proposed rate adjustment, [including the specific change requested,]
 to each contract holder and subscriber affected by the adjustment on  or
 before  the  date  the  rate  filing  or application is submitted to the
 superintendent. The notice shall prominently include mailing and website
 addresses for both the department of financial services and  the  corpo-
 ration  through which a person may, within thirty days from the date the
 rate filing or application is submitted to the  superintendent,  contact

 S. 6624                             3
 
 the  department  of  financial  services or corporation to receive addi-
 tional information or to submit written comments to  the  department  of
 financial services on the rate filing or application. The superintendent
 shall  establish  a  process  to  post on the department's website, in a
 timely manner, all relevant written comments received pertaining to rate
 filings or applications. The corporation shall provide  a  copy  of  the
 notice  to  the  superintendent with the rate filing or application. The
 superintendent shall immediately cause the notice to be  posted  on  the
 department  of  financial  services'  website.  The superintendent shall
 determine whether the filing or application shall  become  effective  as
 filed,  shall become effective as modified, or shall be disapproved. The
 superintendent may modify or disapprove the rate filing  or  application
 if  the  superintendent finds that the premiums are unreasonable, exces-
 sive, inadequate, or  unfairly  discriminatory,  and  may  consider  the
 financial condition of the corporation in approving, modifying or disap-
 proving any premium adjustment[. The]; PROVIDED, HOWEVER, ANY ADJUSTMENT
 TO  A  RATE  FILING  OR APPLICATION MUST BE IN ACCORDANCE WITH GENERALLY
 ACCEPTED ACTUARIAL PRINCIPLES AND PRACTICES, AND MUST BE APPROPRIATE FOR
 THE POPULATION TO BE COVERED AND SERVICES  TO  BE  FURNISHED  UNDER  THE
 CONTRACT.  AN INITIAL determination [of] REGARDING THE RATE OF FILING OR
 APPLICATION SHALL BE MADE BY the superintendent [shall be  supported  by
 sound  actuarial assumptions and methods, and shall be rendered in writ-
 ing between] NO LATER THAN thirty [and sixty] days  from  the  date  the
 rate  filing  or  application  is  submitted  to the superintendent. THE
 SUPERINTENDENT'S INITIAL DETERMINATION SHALL BE  PROVIDED  TO  A  CORPO-
 RATION  IN  WRITING WITHIN THE THIRTY DAY TIME PERIOD AND SHALL DESCRIBE
 IN DETAIL THE ACTUARIAL ASSUMPTIONS AND METHODS USED IN THE  SUPERINTEN-
 DENT'S  DETERMINATION.  Should  the  superintendent  require  additional
 information from the corporation in order to make [a] AN INITIAL  deter-
 mination,  the  superintendent  shall require the corporation to furnish
 such information, and in such event, the [sixty] THIRTY  days  shall  be
 tolled  and  shall  resume  as of the date the corporation furnishes the
 information to the superintendent. [If the superintendent requests addi-
 tional information less than ten days from the expiration of  the  sixty
 days (exclusive of tolling), the superintendent may extend the sixty day
 period an additional twenty days, to make a determination.  The] FOLLOW-
 ING  THE ISSUANCE OF THE INITIAL DETERMINATION, A CORPORATION SHALL HAVE
 FIFTEEN DAYS TO APPEAL THE DETERMINATION IN WRITING. IF AN INITIAL  RATE
 DETERMINATION IS APPEALED, THE SUPERINTENDENT SHALL HAVE FIFTEEN DAYS TO
 ISSUE  A  REVISED  DETERMINATION.    IF THE INITIAL DETERMINATION IS NOT
 APPEALED BY A CORPORATION, IT SHALL BECOME FINAL FIFTEEN DAYS  AFTER  IT
 IS  ISSUED. ALL FINAL RATE DETERMINATIONS SHALL BE CERTIFIED BY AN ACTU-
 ARY DESIGNATED BY THE SUPERINTENDENT WHO MEETS THE QUALIFICATION  STAND-
 ARDS  ESTABLISHED  BY  THE  AMERICAN ACADEMY OF ACTUARIES AND FOLLOW THE
 PRACTICE  STANDARDS  ESTABLISHED  BY  THE  ACTUARIAL  STANDARDS   BOARD.
 NOTWITHSTANDING  THE  FOREGOING,  THE application or rate filing will be
 deemed approved if a determination  is  not  rendered  within  the  time
 allotted  under  this  section. A corporation shall not implement a rate
 adjustment THAT IS APPROVED BY THE SUPERINTENDENT unless the corporation
 provides at least [sixty] THIRTY days advance [written]  notice  of  the
 [premium  rate  adjustment  approved  by the superintendent] ADJUSTMENT,
 EITHER THROUGH A POSTING ON ITS WEBSITE OR BY  WRITTEN  NOTICE  to  each
 contract holder and subscriber affected by the rate adjustment.
   § 3. This act shall take effect immediately.

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Senate Bill S6624

Sponsored By

Archive: Last Bill Status - In Senate Committee Insurance Committee

Jun 21, 2017 - Floor Vote

Floor Vote: Jun 21, 2017

Jun 12, 2017 - Rules Committee Vote

Rules Committee Vote: Jun 12, 2017

2017-S6624 (ACTIVE) - Details

2017-S6624 (ACTIVE) - Summary

2017-S6624 (ACTIVE) - Sponsor Memo

2017-S6624 (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S6624

Share this bill

Sponsored By

James L. Seward

Archive: Last Bill Status - In Senate Committee Insurance Committee

2017-S6624 (ACTIVE) - Details

2017-S6624 (ACTIVE) - Summary

2017-S6624 (ACTIVE) - Sponsor Memo

2017-S6624 (ACTIVE) - Bill Text download pdf

Comments