Bill Text: NY S01720 | 2021-2022 | General Assembly | Introduced


Bill Title: Provides that the New York state health care quality and cost containment commission shall: evaluate each mandated benefit; investigate current practices of health plans with regard to the mandated benefit; investigate the potential premium impact of repealing and/or modifying the mandated benefits on all segments of the insurance market; hold at least two public hearings; submit a report to the legislature; makes related provisions.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2022-01-05 - REFERRED TO INSURANCE [S01720 Detail]

Download: New_York-2021-S01720-Introduced.html



                STATE OF NEW YORK
        ________________________________________________________________________

                                          1720

                               2021-2022 Regular Sessions

                    IN SENATE

                                    January 14, 2021
                                       ___________

        Introduced  by Sen. GALLIVAN -- read twice and ordered printed, and when
          printed to be committed to the Committee on Insurance

        AN ACT to amend the insurance law, in relation to  the  New  York  state
          health care quality and cost containment commission

          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:

     1    Section 1. Section 213 of the insurance law, as added by section 1  of
     2  part L of chapter 57 of the laws of 2007, is amended to read as follows:
     3    § 213. New York state health care quality and cost containment commis-
     4  sion.  (a)  There  is hereby established within the department a commis-
     5  sion, to be known as the "New York state health care  quality  and  cost
     6  containment  commission".  The  commission  shall  consist  of  thirteen
     7  members appointed by the governor, one of whom shall be the  superinten-
     8  dent,  one  of whom shall be the commissioner of health, and six of whom
     9  shall be appointed on the recommendation of the legislative leaders, two
    10  on the recommendation of the temporary president of the senate,  two  on
    11  the  recommendation of the speaker of the assembly, one on the recommen-
    12  dation of the minority leader of the senate, and one on the  recommenda-
    13  tion  of the minority leader of the assembly. All members shall serve at
    14  the pleasure of the governor, and vacancies shall be  appointed  in  the
    15  same  manner  as  original appointments. Members of the commission shall
    16  serve without compensation, but shall be reimbursed for reasonable trav-
    17  el expenses. In making appointments  to  the  commission,  the  governor
    18  shall  ensure  that  the interests of health care consumers, small busi-
    19  nesses, the medical community and health plans are  represented  on  the
    20  commission,  and  that  the commission include at least one actuary, one
    21  expert on health benefits, having no less than fifteen years  of  direct
    22  experience  with  health benefits, and one physician. All members of the
    23  commission shall be seated no later than ninety days after the effective
    24  date of the chapter of the laws of two thousand twenty-one which amended
    25  this section and all vacancies shall be filled as soon as practicable.

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD04048-01-1

        S. 1720                             2

     1    (b)(1) The purpose of the commission shall be to analyze the impact on
     2  health insurance costs and quality of proposed legislation  which  would
     3  mandate  that health benefits be offered or made available in individual
     4  and group health insurance policies, contracts and comprehensive  health
     5  service plans, including legislation that affects the delivery of health
     6  benefits or services or the reimbursement of health care providers.
     7    (2)  The governor, the chair of the senate insurance committee and the
     8  chair of the assembly insurance committee may request  in  writing  that
     9  the commission evaluate a proposed mandated benefit. Upon receiving such
    10  a  request,  the  commission  [may,  by a majority vote of its members,]
    11  shall undertake an evaluation of such proposed mandated benefit.
    12    (3) In evaluating a proposed mandated benefit, the commission shall:
    13    (A) investigate the current practices of health plans with  regard  to
    14  the  proposed mandated benefit, and, to the extent possible, self-funded
    15  health benefit plans;
    16    (B) investigate the potential premium impact of the proposed  mandated
    17  benefits  on all segments of the insurance market, as well as the poten-
    18  tial for avoided costs through early detection and treatment  of  condi-
    19  tions, or more cost-effective delivery of medical services; [and]
    20    (C)  analyze  the  most  current [medical] and credible evidence based
    21  medicine literature regarding the proposed mandated benefit published in
    22  peer reviewed medical literature generally recognized  by  the  relevant
    23  medical  community  to  determine  the  effectiveness  of  the  proposed
    24  mandated benefit and its impact on health care quality[.]; and
    25    (D) investigate the potential  cost  to  the  state  of  the  proposed
    26  mandated benefits in light of the implementation of the federal afforda-
    27  ble care act.
    28    (4) In evaluating a proposed mandated benefit, the commission may hold
    29  one  or more public hearings, and shall strive to obtain independent and
    30  verifiable information from diverse sources within the healthcare indus-
    31  try, medical community and among health care consumers  with  regard  to
    32  the proposed mandated benefit.
    33    (c)  To assist the commission in its duties, and upon the direction of
    34  the commission, the superintendent is authorized to enter  into  one  or
    35  more  contracts  with independent entities and organizations with demon-
    36  strable expertise in health care quality, finance, utilization and actu-
    37  arial services. For the purposes of  this  section,  the  superintendent
    38  shall  not enter into contracts with health plans, entities or organiza-
    39  tions owned or controlled by health plans, or with significant  business
    40  relationships with health plans.
    41    (d)  Upon  completion of its evaluation of a proposed mandated benefit
    42  pursuant to this section, the commission shall deliver a written  report
    43  of its findings to the chair of the assembly insurance committee and the
    44  chair of the senate insurance committee.
    45    (e)(1)  Beginning  no  later  than nine months after the commission is
    46  seated, and reoccurring no less often than once every three  years,  the
    47  commission shall analyze the impact on health insurance costs and quali-
    48  ty  of  all  state laws which mandate that health benefits be offered or
    49  made available  in  individual  and  group  health  insurance  policies,
    50  contracts  and  comprehensive  health  service  plans, including but not
    51  limited to laws that affect the delivery of health benefits or  services
    52  or the reimbursement of health care providers.
    53    (2) In evaluating each mandated benefit, the commission shall:
    54    (A)  investigate  the current practices of health plans with regard to
    55  the mandated benefit, and, to the extent  possible,  self-funded  health
    56  benefit  plans  including but not limited to avoided costs through early

        S. 1720                             3

     1  detection and treatment of conditions, or more  cost-effective  delivery
     2  of medical services;
     3    (B) investigate the potential premium impact of repealing and/or modi-
     4  fying the mandated benefits on all segments of the insurance market;
     5    (C)  analyze  the  most  current  and credible evidence based medicine
     6  literature regarding the mandated benefit  published  in  peer  reviewed
     7  medical literature generally recognized by the relevant medical communi-
     8  ty to determine the effectiveness of the mandated benefit and its impact
     9  on health care quality; and
    10    (D)  investigate  the  potential  cost  to  the  state of the proposed
    11  mandated benefits in light of the implementation of the federal afforda-
    12  ble care act.
    13    (3) In evaluating mandated benefits, the commission shall hold no less
    14  than two public hearings, and shall strive  to  obtain  independent  and
    15  verifiable  information  from  diverse  sources  within  the health care
    16  industry, medical community and among health care consumers with  regard
    17  to each mandated benefit.
    18    (4)(A)  On  or  before the first day of February, two thousand twenty-
    19  two, the commission shall submit to the legislature and  disseminate  to
    20  the  public  recommendations for the repeal and/or modification of state
    21  laws which mandate benefits, along with a single  piece  of  legislation
    22  necessary to implement such recommendations. These recommendations shall
    23  not  be  expected  to  increase  the  average premium in the state. Upon
    24  receipt of such recommendations, the implementing  legislation  therefor
    25  shall be introduced in both houses of the legislature without any amend-
    26  ments within five days.
    27    (B)  The  legislation  introduced pursuant to subparagraph (A) of this
    28  paragraph shall be voted upon, without amendment, by both such houses of
    29  the legislature within ninety days, but not  sooner  than  thirty  days,
    30  after  the commission submits its recommendations to the legislature. If
    31  approved, the legislature shall forward such legislation to the governor
    32  within five days.
    33    § 2. This act shall take effect immediately.
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