S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                         7334
                                   I N  S E N A T E
                                      May 2, 2012
                                      ___________
       Introduced  by  Sen.  SEWARD -- read twice and ordered printed, and when
         printed to be committed to the Committee on Insurance
       AN ACT to amend the insurance law and the public health law, in relation
         to health maintenance organization benefit designs
         THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
       BLY, DO ENACT AS FOLLOWS:
    1    Section  1.  Subsection  (e)  of  section 1109 of the insurance law is
    2  amended to read as follows:
    3    (e) The superintendent may promulgate regulations in effectuating  the
    4  purposes  and  provisions  of this chapter and article forty-four of the
    5  public  health  law  and  may  modify  requirements  applicable  to  the
    6  contracts between a health maintenance organization and its subscribers,
    7  INCLUDING  CONTRACTS WITH BENEFIT DESIGNS PURSUANT TO SUBDIVISION SIX OF
    8  SECTION FORTY-FOUR HUNDRED SIX OF THE PUBLIC HEALTH LAW, subject to such
    9  limitations as the superintendent shall  deem  necessary  or  proper  to
   10  insure the performance of such contracts.
   11    S  2. Section 4406 of the public health law is amended by adding a new
   12  subdivision 6 to read as follows:
   13    6. NOTWITHSTANDING ANY STATE LAW, RULE OR REGULATION TO THE  CONTRARY,
   14  AN  ORGANIZATION  CERTIFIED  PURSUANT  TO  THIS ARTICLE IS AUTHORIZED TO
   15  ISSUE CONTRACTS WITH BENEFIT DESIGNS, INCLUDING DEDUCTIBLES, COINSURANCE
   16  AND COPAYMENTS, THAT HAVE ACTUARIAL VALUATIONS OF NINETY PERCENT, EIGHTY
   17  PERCENT, SEVENTY PERCENT AND SIXTY PERCENT.
   18    S 3. This act shall take effect January 1, 2013, and  shall  apply  to
   19  policies  and contracts issued, renewed, modified, altered or amended on
   20  or after such date.
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD15642-01-2