S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    712
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                                (PREFILED)
 
                              January 6, 2021
                                ___________
 
 Introduced  by Sens. BRESLIN, SANDERS, SKOUFIS -- read twice and ordered
   printed, and when printed to be committed to the Committee  on  Insur-
   ance
 
 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:
 
   Section  1.  Notwithstanding  article 44 or 47 of the insurance law or
 any other provision of law to the contrary, and subject to the  require-
 ments  set  forth in this section, a municipality is permitted, with the
 consent of the county and the governing body of  such  municipality,  to
 join  a  county self-funded or self-insured health plan in any county in
 which such municipality is located in whole or in part. Municipality  is
 defined as any city, town, village or any other municipal corporation, a
 school  district  or  any governmental entity operating a public school,
 college or university, a  public  improvement  or  special  district,  a
 public  authority,  commission,  or  public  benefit corporation, or any
 other public corporation, agency or instrumentality or unit  of  govern-
 ment which exercises governmental powers under the laws of the state but
 is  not  a  part of, nor a department of, nor an agency of the state. In
 order for a municipality or municipalities to join the county self-fund-
 ed or self-insured health plan, the county shall file  with  the  super-
 intendent  of  financial  services certification that, with inclusion of
 the lives to be covered in the plan following admission of  the  munici-
 pality  or municipalities, the county self-funded or self-insured health
 plan meets the following six requirements:
   (a) That the county and any  municipality  or  municipalities  joining
 such plan have mutually consented to join such plan.
   (b)  That  it  maintain  a reserve fund, calculated as a percentage of
 total annual incurred claims, of a minimum of 12% of claims.

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
              

                       [ ] is old law to be omitted.
                                                            LBD03750-01-1

 S. 712                              2
 
   (c) That it has a surplus account, established and maintained for  the
 sole purpose of satisfying unexpected obligations of the benefit plan in
 the  event of termination or abandonment of the plan, which shall not be
 less than 5% of the annualized earned  premium  equivalents  during  the
 current fiscal year of the plan.
   (d)  That  it  has in effect a specific stop loss per individual claim
 only, no aggregate,  and  with  a  minimum  deductible  of  $200,000  to
 $250,000.
   (e)  That  it has a minimum of 1,000 covered lives including retirees,
 but not including dependents.
   (f) That joint and several liability of  participating  municipalities
 for  the obligations of the plan is hereby abolished, and such liability
 shall be governed as follows:
   1. If the plan does not have admitted assets, as  defined  in  section
 107 of the insurance law, at least equal to the aggregate of its liabil-
 ities and reserves and minimum surplus as provided in subdivision (b) of
 this  section,  the  governing  board of such plan shall, within 30 days
 thereafter, order an assessment for the amount that will provide  suffi-
 cient  funds  to  remove such impairment and collect from each municipal
 corporation a pro rata share of such assessed amount.
   2. Every municipal corporation that participated in the  plan  at  any
 time  during  the  two-year period prior to the issuing of an assessment
 order by the plan's governing board shall, if notified of  such  assess-
 ment, pay its pro rata share of such assessment within 90 days after the
 issuance of that assessment order.
   3. A municipal corporation's pro rata share of any assessment shall be
 determined  by  applying  the  ratio  of (i) the total assessment to the
 total contributions or premium  equivalents  earned  during  the  period
 covered  by  the  assessment  on  all  municipal corporations subject to
 assessment to (ii) the contribution or premium equivalent earned  during
 such period attributable to such municipal corporation.
   4.  The  contingent liability of municipal corporations for additional
 premium equivalents or assessments shall not be included as an asset  in
 the financial statements of the self-funded or self-insured health plan.
   The  superintendent  of financial services shall have the authority to
 review such certification  to  determine  that  the  six  aforementioned
 requirements  have been met; provided, however, that in the absence of a
 finding of the superintendent to the contrary within a six-month  period
 following the filing of such certification, the admission of the munici-
 pality  to the county self-funded or self-insured health plan shall take
 effect. In January of every year following the initial  filing  of  such
 certification, the county shall file a subsequent certification that the
 six aforementioned requirements remain in full force and effect.
   § 2. This act shall take effect immediately.