§ 922. New York state small business health insurance partnership
program. 1. The commissioner is authorized to the extent of funds
available therefor to establish the New York state small business health
insurance partnership program.

2. New York state small business health insurance partnership program.
(a) A small business health insurance partnership program shall assist
eligible employers in purchasing small group health insurance policies
for their full-time employees and dependents.

(b) An eligible employer may apply to the commissioner for approval in
the small business health insurance partnership program by submitting an
application on a form prescribed by the commissioner. The information
required on such application shall include, but not be limited to:

(i) the name and address of the employer and the nature of the
business;

(ii) the names and salaries of the employer and employees;

(iii) an affidavit by the employer that employer-provided health
insurance benefits have not been provided to employees in the
twelve-month period prior to the effective date of this article; and

(iv) such other information as the commissioner may require.

(c) Upon reviewing the applications from eligible small employers, the
commissioner shall, within the amount appropriated for such purpose,
award partnership certificates to employers which meet the eligibility
requirements; provided however, no partnership certificates will be
awarded by the commissioner on and after January first, two thousand.
In addition to evidencing approval of an eligible employer, the
certificate shall state the amount of a small business health insurance
partnership incentive payment for a small group health insurance policy,
which in no event may exceed forty-five percent of the premium costs for
group health care coverage for employees and their dependents. Employees
may be required to make contributions to the payment of premium costs
under this program at the option of the employer, but in no event shall
such contribution exceed ten percent of the premium costs. Premium costs
incurred by an employer for small group health insurance coverage for
officers and directors of an employer and others with a proprietary or
ownership interest in the employer may be eligible for an incentive
payment to offset premium costs; provided, however, that the gross
household income of such officers and directors or others with a
proprietary or ownership interest is at or below two hundred twenty-two
percent of the non-farm federal poverty level and provided further that
one or more employees and their dependents proposed to be covered by
such group health care coverage are unrelated to such officers,
directors or other persons with a proprietary or ownership interest. If
after joining the program an employer participating in a small business
insurance partnership program hires more employees so that the employer
has more than fifty full-time employees at any one time, the employer
may continue in the program but the premium costs attributable to the
additional employees in excess of fifty or their families shall not be
eligible for incentive payments.

(d) In approving partnership certificates for eligible small employers
prior to January first, two thousand, the commissioner shall:

(i) first approve applications from eligible employers currently
receiving assistance through a small business health insurance program
created by the expanded health care coverage act authorized pursuant to
chapter seven hundred three of the laws of nineteen hundred
eighty-eight; and

(ii) give preference to eligible employers with the lowest average
salaries and base the amount of the certificate on the salaries received
by the employer and employees in order to maximize the impact of the
small business partnership premium payments.

(e) Upon receipt of a partnership certificate from the commissioner,
an approved eligible employer may obtain a small group health insurance
policy from the insurer, health maintenance organization or corporation
of its choice. No such insurer, health maintenance organization or
corporation shall refuse to accept a small employer holding a valid
partnership certificate and such insurer, organization or corporation
shall arrange for the payment of the small employer's share of the small
group health insurance policy or comprehensive health services plan
premium. The approved applicant shall make available upon request from
the commissioner information regarding continued eligibility in the
program.

The commissioner shall, within amounts available therefor, on a
competitive bid process, contract with organizations for purposes of
public education, outreach and recruitment of eligible businesses,
including the distribution of applications and information regarding
enrollment. The organizations shall include, but not be limited to:
community based organizations such as chambers of commerce or trade
organizations, diagnostic and treatment centers, hospitals, and other
such organizations which engage in outreach and marketing activities. In
no event shall the amount available for education, outreach, and
recruitment exceed two percent of the total amount available for the
purposes of this section.

(f) The commissioner, by rules and regulations, adopted by the
commissioner shall establish the procedure by which insurers,
corporations and organizations issuing small group health insurance
policies under this article may redeem a certificate or certificates for
the portion of the premium not paid by the employer, but in no event
shall such redemption occur on less than a quarterly basis.

Any business which, with the intent to obtain benefits, willfully
misstates information required for application for participation in the
New York state health insurance partnership program or willfully fails
to notify the commissioner or the commissioner's designee of any change
in status which makes the business ineligible for the program, shall
repay such incentive payments paid on behalf of its employees or program
participants for health coverage through the New York state health
insurance partnership program.

(g) Notwithstanding any inconsistent provision of law or regulation to
the contrary, benefits under the small business health insurance
partnership program shall be considered secondary to any other plan of
insurance or benefit program under which a person may have coverage.

(h) On or before April first, nineteen hundred ninety-seven, and
annually thereafter through April first, two thousand, the commissioner
shall submit a report on the small business health insurance partnership
program to the governor, the speaker of the assembly and the majority
leader of the senate. Such report shall include, but not be limited to:

(i) the number of employers and employees able to purchase small group
health insurance policies under the program;

(ii) the location and the nature of the business of such employers;
and

(iii) recommendations for any changes which would improve the program.