HB 77-FN – AS INTRODUCED
2005 SESSION
01/10
HOUSE BILL 77-FN
AN ACT relative to geographic location for small group insurance coverage.
SPONSORS: Rep. Langley, Rock 18; Rep. Marshall Quandt, Rock 13; Rep. King, Coos 1; Rep. Hughes, Rock 18; Rep. S. Scamman, Rock 13; Sen. Gallus, Dist 1; Sen. Fuller Clark, Dist 24
This bill prohibits the use of geographic location as a rating factor for small group insurance coverage.
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Explanation: Matter added to current law appears in bold italics.
Matter removed from current law appears [in brackets and struckthrough.]
Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
05-0137
01/10
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Five
AN ACT relative to geographic location for small group insurance coverage.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Small Employer Insurance Coverage; Geographic Location. Amend the introductory paragraph of RSA 420-G:4, I(e) to read as follows:
(e) In establishing the premium charged, health carriers providing coverage to small employers shall calculate a rate that is derived from the health coverage plan rate through the application of rating factors that the carrier chooses to utilize for age, group size, industry classification, [geographic location,] and health status. Geographic location of a small employer shall not be used as a rating factor. Such factors may be utilized only in accordance with the following limitations:
2 Repeal. RSA 420-G:4, I(e)(5), relative to geographic location as a rating factor, is repealed.
3 Effective Date. This act shall take effect 60 days after its passage.
LBAO
05-0137
11/29/04
HB 77-FN - FISCAL NOTE
AN ACT relative to geographic location for small group insurance coverage.
FISCAL IMPACT:
The Insurance Department has determined this bill may have an indeterminable impact on county and local expenditures. There will be no fiscal impact on state expenditures or state, county and local revenue.
METHODOLOGY:
The Department stated this bill prohibits the use of geographical location in establishing the health insurance premium rate to be charged a small employer. The State is self-funded, a large employer, and laws that apply to fully-insured small employer plans would not affect the State’s coverage. The Department indicated that some counties and municipalities are small employers, and may not be self-funded. Changing the rating rules will cause some of their rates to decrease, while others will experience a rate increase. The exact amount of the fiscal impact cannot be determined.