S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5445
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                              March 10, 2023
                                ___________
 
 Introduced  by  M. of A. COOK, WEPRIN, REYES -- Multi-Sponsored by -- M.
   of A. GLICK, PEOPLES-STOKES -- read once and referred to the Committee
   on Insurance
 
 AN ACT to amend the insurance law, in relation to  providing  disclosure
   to medicare supplemental insurance policy holders regarding the rights
   of such holders at the time of a rate change

   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. The insurance law is amended by adding a new section 3218-a
 to read as follows:
   § 3218-A. REQUIRED DISCLOSURE TO MEDICARE SUPPLEMENTAL INSURANCE POLI-
 CY HOLDERS. (A) EVERY INSURER OFFERING A RENEWAL  OF  A  CONTRACT  TO  A
 CLOSED BLOCK MEMBER, OR NOTIFYING SUCH CLOSED BLOCK MEMBER OF A PROPOSED
 OR  APPROVED CHANGE IN THE PREMIUMS OR THE BENEFITS UNDER SUCH CONTRACT,
 SHALL NOTIFY SUCH MEMBER IN WRITING, IN A FORM APPROVED  BY  THE  SUPER-
 INTENDENT,  OF:   (1) THE ABILITY OF SUCH MEMBER TO PURCHASE A DIFFERENT
 POLICY  WITHOUT  UNDERGOING  A  PRE-EXISTING  CONDITION  WAITING  PERIOD
 PROVIDING THERE WAS CONTINUOUS COVERAGE THE PREVIOUS SIX MONTHS; AND (2)
 THE  AVAILABILITY  OF  ANY  POLICY  OR  CONTRACT OFFERED BY SUCH INSURER
 PROVIDING SIMILAR BENEFITS AT A LOWER PREMIUM, AND A TOLL-FREE TELEPHONE
 NUMBER AND INTERNET WEBSITE  WHERE  SUCH  MEMBER  MAY  FIND  INFORMATION
 REGARDING  POLICIES PROVIDING SIMILAR BENEFITS OFFERED BY ANOTHER INSUR-
 ER, A CORPORATION ORGANIZED PURSUANT  TO  ARTICLE  FORTY-THREE  OF  THIS
 CHAPTER,  OR AN ORGANIZATION CERTIFIED PURSUANT TO ARTICLE FORTY-FOUR OF
 THE PUBLIC HEALTH LAW.
   (B) FOR THE PURPOSES OF THIS SECTION, "CLOSED BLOCK MEMBER" SHALL MEAN
 THE HOLDER OF A CONTRACT OF MEDICARE SUPPLEMENTAL INSURANCE ISSUED BY AN
 INSURER PURSUANT TO A FORM FOR WHICH SUCH INSURER NO LONGER SOLICITS  OR
 ACCEPTS  NEW  POLICYHOLDERS, BUT CONTINUES TO OFFER RENEWAL CONTRACTS TO
 EXISTING POLICYHOLDERS UNDER SUCH FORM.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD08253-01-3
 A. 5445                             2
              

 
   § 2. The insurance law is amended by adding a new section 4331 to read
 as follows:
   §  4331. REQUIRED DISCLOSURE TO MEDICARE SUPPLEMENTAL INSURANCE POLICY
 HOLDERS. (A) EVERY CORPORATION OFFERING A RENEWAL OF  A  CONTRACT  TO  A
 CLOSED BLOCK MEMBER, OR NOTIFYING SUCH CLOSED BLOCK MEMBER OF A PROPOSED
 OR  APPROVED CHANGE IN THE PREMIUMS OR THE BENEFITS UNDER SUCH CONTRACT,
 SHALL NOTIFY SUCH MEMBER IN WRITING, IN A FORM APPROVED  BY  THE  SUPER-
 INTENDENT,  OF:  (1)  THE ABILITY OF SUCH MEMBER TO PURCHASE A DIFFERENT
 CONTRACT WITHOUT UNDERGOING  A  PRE-EXISTING  CONDITION  WAITING  PERIOD
 PROVIDING THERE WAS CONTINUOUS COVERAGE THE PREVIOUS SIX MONTHS; AND (2)
 THE  AVAILABILITY  OF ANY POLICY OR CONTRACT OFFERED BY SUCH CORPORATION
 PROVIDING SIMILAR BENEFITS AT A LOWER PREMIUM, AND A TOLL-FREE TELEPHONE
 NUMBER AND INTERNET WEBSITE  WHERE  SUCH  MEMBER  MAY  FIND  INFORMATION
 REGARDING CONTRACTS PROVIDING SIMILAR BENEFITS OFFERED BY ANOTHER INSUR-
 ER, A CORPORATION ORGANIZED PURSUANT TO THIS ARTICLE, OR AN ORGANIZATION
 CERTIFIED PURSUANT TO ARTICLE FORTY-FOUR OF THE PUBLIC HEALTH LAW.
   (B) FOR THE PURPOSES OF THIS SECTION, "CLOSED BLOCK MEMBER" SHALL MEAN
 THE  HOLDER OF A CONTRACT OF MEDICARE SUPPLEMENTAL INSURANCE ISSUED BY A
 CORPORATION PURSUANT TO A FORM FOR  WHICH  SUCH  CORPORATION  NO  LONGER
 SOLICITS  OR  ACCEPTS  NEW  SUBSCRIBERS,  BUT CONTINUES TO OFFER RENEWAL
 CONTRACTS TO EXISTING SUBSCRIBERS UNDER SUCH FORM.
   § 3. This act shall take effect on January first next  succeeding  the
 date on which it shall have become a law and shall apply to all policies
 issued, renewed, modified or altered on or after such date.