Bill Text: NY S08074 | 2009-2010 | General Assembly | Amended
Bill Title: Provides medical malpractice insurance premium discounts for physicians and hospitals for utilization of certain electronic health record technology.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2010-06-30 - PRINT NUMBER 8074A [S08074 Detail]
Download: New_York-2009-S08074-Amended.html
S T A T E O F N E W Y O R K
________________________________________________________________________
8074--A
I N S E N A T E
June 4, 2010
___________
Introduced by Sen. C. JOHNSON -- read twice and ordered printed, and
when printed to be committed to the Committee on Insurance -- commit-
tee discharged, bill amended, ordered reprinted as amended and recom-
mitted to said committee
AN ACT to amend the insurance law, in relation to medical malpractice
insurance premium discounts for physicians and hospitals for utiliza-
tion of certain electronic health record technology; and to repeal
certain provisions of such law relating thereto
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
1 Section 1. Section 1325 of the insurance law is REPEALED and a new
2 section 1325 is added to read as follows:
3 S 1325. EXEMPTION. FOR THE PURPOSES OF EXEMPTING CERTAIN INSURANCE
4 COMPANIES FROM THE PROVISIONS OF SECTION ONE THOUSAND THREE HUNDRED
5 TWENTY-FOUR OF THIS ARTICLE, THE SUPERINTENDENT SHALL EXEMPT THROUGH
6 DECEMBER THIRTY-FIRST, TWO THOUSAND FIFTEEN THOSE STOCK AND NON-STOCK
7 INSURANCE COMPANIES TO WHICH SUBPARAGRAPH (B) OF PARAGRAPH TWO OF
8 SUBSECTION (B) OF SUCH SECTION APPLIES.
9 S 2. The insurance law is amended by adding a new section 1326 to read
10 as follows:
11 S 1326. STATUTORY ASSOCIATION MEMBERSHIP; OBLIGATIONS. FOR THOSE STOCK
12 AND NON-STOCK COMPANIES TO WHICH SUBPARAGRAPH (B) OF PARAGRAPH TWO OF
13 SUBSECTION (B) OF SECTION ONE THOUSAND THREE HUNDRED TWENTY-FOUR OF THIS
14 ARTICLE APPLIES, NO LIABILITIES ARISING FROM AN ASSOCIATION AUTHORIZED
15 PURSUANT TO SUBPARAGRAPH (D) OF PARAGRAPH TWO OF SUBSECTION (C) OF
16 SECTION FIVE THOUSAND FIVE HUNDRED TWO OF THIS CHAPTER SHALL BE DUE AND
17 OWING FROM SUCH COMPANIES UNLESS AND UNTIL SUCH LIABILITIES CAN ONLY BE
18 SATISFIED, AFTER CONSIDERATION OF ALL RESOURCES OF THE ASSOCIATION,
19 INCLUDING BUT NOT LIMITED TO CURRENT PREMIUM INCOME, BY A CONTRIBUTION
20 FROM SUCH COMPANIES AND THE COMPANIES ARE NOTIFIED OF SAME BY SUCH ASSO-
21 CIATION OR THE SUPERINTENDENT NOT LESS THAN THREE HUNDRED SIXTY-FIVE
22 DAYS PRIOR TO THE DATE UPON WHICH SUCH OBLIGATION SHALL BE DUE AND
23 OWING, AND SHALL ONLY RELATE TO LIABILITIES THAT ARE ACTUALLY DUE AND
24 OWING BY THE ASSOCIATION IN THAT YEAR IN WHICH CONTRIBUTION IS TO BE
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD17620-02-0
S. 8074--A 2
1 MADE. SUCH LIABILITIES SHALL NOT BE AGGREGATED FOR ANY OTHER YEAR EXCEPT
2 THAT IN WHICH CONTRIBUTION IS DUE AND OWING OR PREVIOUS YEARS IN WHICH
3 OBLIGATIONS FOR CONTRIBUTIONS HAVE NOT BEEN SATISFIED; FURTHER, SUCH
4 LIABILITIES SHALL NOT INCLUDE ANY CONTINGENT LIABILITIES OF THE ASSOCI-
5 ATION. COMPANIES, UPON NOTICE OF SUCH OBLIGATION SHALL HAVE THE RIGHT TO
6 DEMAND AN AUDIT OF THE ASSOCIATION AND ITS REQUEST FOR COVERAGE OF SUCH
7 LIABILITIES BY SUCH CONTRIBUTIONS; PROVIDED, HOWEVER, THAT COMPANIES
8 SHALL MAINTAIN AT ALL TIMES A RESERVE OF NOT LESS THAN TEN PERCENT OF
9 ALL SUCH AGGREGATE LIABILITIES OF THE ASSOCIATION, AS SUCH AGGREGATE
10 LIABILITIES ARE REPORTED BY THE ASSOCIATION CONSISTENT WITH THE
11 PROVISIONS OF THIS SECTION.
12 S 3. Subsection (c) of section 2343 of the insurance law, as amended
13 by section 27 of part B of chapter 58 of the laws of 2008, is amended to
14 read as follows:
15 (c) Notwithstanding any other provision of this chapter, no applica-
16 tion for an order of rehabilitation or liquidation of a domestic insurer
17 whose primary liability arises from the business of medical malpractice
18 insurance, as that term is defined in subsection (b) of section five
19 thousand five hundred one of this chapter, shall be made on the grounds
20 specified in subsection (a) or (c) of section seven thousand four
21 hundred two of this chapter at any time prior to [June thirtieth] DECEM-
22 BER THIRTY-FIRST, two thousand [eleven] FIFTEEN.
23 S 4. Section 2343 of the insurance law is amended by adding a new
24 subsection (f) to read as follows:
25 (F)(1) THE SUPERINTENDENT SHALL, BY REGULATION, PROVIDE FOR A
26 REDUCTION IN THE RATES OF MEDICAL MALPRACTICE INSURANCE PREMIUMS APPLI-
27 CABLE TO PHYSICIANS, HOSPITALS AND NURSING FACILITIES THAT MEANINGFULLY
28 USE CERTIFIED ELECTRONIC HEALTH RECORD TECHNOLOGY PURSUANT TO THE
29 PROVISIONS OF THE FEDERAL AMERICAN RECOVERY AND REINVESTMENT ACT OF
30 2009, PUB. L. 111-5. IN PRESCRIBING SUCH REGULATION, THE SUPERINTENDENT
31 MAY CONSULT WITH THE COMMISSIONER OF HEALTH. THE REDUCTION DETERMINED BY
32 THE SUPERINTENDENT SHALL BE PROPORTIONATELY RELATED TO THE ACTUARIALLY
33 CALCULABLE DECREASE IN LOSSES AS A RESULT OF THE MEANINGFUL USE OF THE
34 CERTIFIED ELECTRONIC HEALTH RECORD TECHNOLOGY.
35 (2) THE SUPERINTENDENT IS AUTHORIZED TO CONDUCT A PILOT PROGRAM TO
36 EVALUATE THE POTENTIAL DECREASE IN LOSSES EXPERIENCED AS A RESULT OF THE
37 MEANINGFUL USE OF SUCH CERTIFIED ELECTRONIC HEALTH RECORD TECHNOLOGY TO
38 DETERMINE THE EXTENT OF ITS BENEFIT AS A RISK MITIGATION ACTIVITY. IN
39 THE DETERMINATION OF THE REDUCTION PROVIDED FOR IN THIS SUBSECTION, THE
40 SUPERINTENDENT SHALL CONSULT WITH THE COMMISSIONER OF HEALTH AND MEDICAL
41 MALPRACTICE INSURERS AUTHORIZED TO DO BUSINESS IN THIS STATE.
42 S 5. This act shall take effect immediately, provided, however, that
43 section four of this act shall take effect on the one hundred twentieth
44 day after it shall have become a law.
