Bill Text: DE HB336 | 2013-2014 | 147th General Assembly | Draft

NOTE: There are more recent revisions of this legislation. Read Latest Draft

---

Bill Title: An Act To Amend Title 29 Of The Delaware Code Relating To Supplemental Insurance Benefits.

Spectrum: Moderate Partisan Bill (Democrat 6-1)

Status: (Passed) 2014-08-06 - Signed by Governor [HB336 Detail]

Download: Delaware-2013-HB336-Draft.html

---

SPONSOR:	Rep. Carson & Sen. McDowell & Rep. D.E. Williams & Sen. Ennis
	Reps. Keeley, Longhurst; Sen. Lawson

HOUSE OF REPRESENTATIVES

147th GENERAL ASSEMBLY

HOUSE BILL NO. 336

AN ACT TO AMEND TITLE 29 OF THE DELAWARE CODE RELATING TO SUPPLEMENTAL INSURANCE BENEFITS.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE:

Section 1.Amend Title 29 of the Delaware Code by inserting a new Chapter 52C as indicated by underlining as follows:

CHAPTER 52C. SUPPLEMENTAL INSURANCE PROGRAM

§5284.Definitions.

"Carrier" shall mean the supplemental income benefits carrier selected pursuant to §5286 of this title.

"Claims loss ratio" shall mean claims payable as a percentage of premium income, or ratio of incurred losses and loss adjustment expenses to net premiums earned.

"Committee" shall mean the State Employee Benefits Committee as established by §9602 of this title.

"Employee" shall mean an eligible employee as defined in §5501(i) of this title who elects to participate in the supplemental insurance program as specified in § 5287 of this title.

"Income indemnity" shall mean restoration to the participating employee of a loss by payment.

"Premium" shall mean the price of insurance protection for a specified risk for a specified period of time.

"Supplemental insurance program" shall mean voluntary insurance benefits designed to supplement existing major medical coverage where the payments are pre-determined and paid regardless of other available coverage.

§5285.Payment of premium or subscription charges.

The participating employee shall pay all premium or subscription charges for the full cost of the supplemental insurance coverage policy, with no premium cost to the State.

§5286. Selection of the supplemental income benefits carrier.

The carrier shall be licensed in Delaware, selected by a proper vote of the Committee, and have adequate servicing facilities to carry out the terms of the contract as awarded by the Committee.The selected carrier shall possess minimum assets of $5 Billion, and maintain a minimum claims loss ratio of 60%.

§5287.Supplemental insurance program and design.

The type of offered insurance shall be supplemental individual health insurance that is guaranteed renewable.This elective supplemental insurance program will entitle participating employees to receive income indemnity.Accident, cancer, and critical care and recovery, are to be required benefits of the offered supplemental policies.The Committee will determine whether premiums are to be deducted pre-tax or after-tax.The group monthly electronic invoice payments and claims will be administered by the carrier.The supplemental benefits policies will be made available during the 2014 Open Enrollment for employee benefits or within 9 months of the supplemental insurance program's enactment.

SYNOPSIS

This bill governs the offering and administration of elective supplemental individual health insurance for participating State employees. More specifically, the bill mandates payment of premiums by the participating employees, selection of the supplemental insurance benefits carrier, and details the supplemental insurance program and design.