SB468 (2008) Detail

(New Title) relative to the reinsurance pool and the New Hampshire vaccine association.


CHAPTER 375

SB 468 – FINAL VERSION

03/13/08 0812s

07May2008… 1478h

06/05/08 2052eba

2008 SESSION

08-2709

01/09

SENATE BILL 468

AN ACT relative to the reinsurance pool and the New Hampshire vaccine association.

SPONSORS: Sen. Hassan, Dist 23; Sen. Sgambati, Dist 4; Rep. Butler, Carr 1; Rep. Nord, Rock 1

COMMITTEE: Commerce, Labor and Consumer Protection

AMENDED ANALYSIS

This bill terminates reinsurance coverage through the New Hampshire small employer reinsurance pool. The bill includes government plans and non-domestic insurers writing health insurance in New Hampshire in the assessment base that funds part of the costs of the New Hampshire vaccine association and the New Hampshire health plan. The bill also gives the insurance commissioner authority to annually review assessment activity related to the New Hampshire vaccine association, the New Hampshire small employer reinsurance pool, and the New Hampshire health plan to ensure that all members that should be assessed have reported and paid the proper assessment.

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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

03/13/08 0812s

07May2008… 1478h

06/05/08 2052eba

08-2709 01/09

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Eight

AN ACT relative to the reinsurance pool and the New Hampshire vaccine association.

Be it Enacted by the Senate and House of Representatives in General Court convened:

375:1 New Hampshire Vaccine Association. Amend RSA 126-Q:3, V(k) to read as follows:

(k) Submit an annual report to the commissioner of insurance [listing those licensed insurers that failed to remit their assessments], in a manner and form determined by the commissioner, listing the association membership base, providing a count of covered lives by member, identifying changes in association membership and covered lives, describing the collection of assessments, listing payment delinquencies, and containing such other related information as the commissioner may require.

375:2 New Paragraph; New Hampshire Vaccine Association. Amend RSA 126-Q:5 by inserting after paragraph I the following new paragraph:

I-a. The insurance commissioner shall annually review the report required under RSA 126-Q:3, V(k) on association membership, covered lives, and the payment of assessments to ensure that all insurers that should be members of the association are participating in the association and that all association members have accurately reported covered lives and paid the proper assessment. The association shall remedy any problem identified by the commissioner with respect to membership in the association, reporting of covered lives, or payment of the assessment.

375:3 Individual Health Insurance; Definitions. Amend RSA 404-G:2, V(d) to read as follows:

(d) Protected, in part, by a group excess loss insurance policy where the policy or certificate of coverage has been issued or delivered in New Hampshire[, and where coverage has been purchased by a group health insurance plan subject to the Employee Retirement Income Security Act of 1974, Public Law No. 93-406 (ERISA)].

375:4 Individual Health Insurance. Amend RSA 404-G:2, VII to read as follows:

VII. “Health insurance” means health insurance coverage issued in accordance with RSA 415, 420-A, or 420-B. For the purposes of this chapter, health insurance shall not include accident only, credit, dental, vision, Medicare supplement, Medicare Risk, Medicare+Choice, Managed Medicaid, long-term care, disability income, coverage issued as a supplement to a liability insurance, workers’ compensation or similar insurance, automobile medical payment insurance, policies or certificates of specified disease, hospital confinement indemnity, limited benefit health insurance [or short-term, nonrenewable individual health insurance], coverage provided through the New Hampshire healthy kids association, and coverage provided through the Federal Employees’ Program. [Nonprofit health service corporations shall exclude coverage provided through national account policies originating outside of New Hampshire to the extent the nonprofit health service corporation assumes no risk for the provision of such insurance.] Health insurance does include group excess loss insurance.

375:5 New Section; Report Required. Amend RSA 404-G by inserting after section 4 the following new section:

404-G:4-a Report Required. The association shall submit an annual report to the commissioner, in a manner and form determined by the commissioner, listing the association membership base, providing a count of covered lives by member, identifying changes in association membership and covered lives, describing the collection of assessments, listing payment delinquencies, and containing such other related information as the commissioner may require.

375:6 New Paragraph; Individual Health Insurance; Commissioner’s Powers. Amend RSA 404-G:6 by inserting after paragraph I the following new paragraph:

I-a. The commissioner shall annually review the report required under RSA 404-G:4-a on association membership, covered lives, and the payment of assessments to ensure that all insurers that should be members of the association are participating in the association and that all association members have accurately reported covered lives and paid the proper assessment. The association shall remedy any problem identified by the commissioner with respect to membership in the association, reporting of covered lives, or payment of the assessment.

375:7 Reinsurance. Amend RSA 420-K:1, IV to read as follows:

IV. “Covered lives” [means “covered lives” as defined in RSA 404-G: 2, V.] shall include all persons who are:

(a) Covered under an individual health insurance policy issued or delivered in New Hampshire.

(b) Covered under a group health insurance policy that is issued or delivered in New Hampshire.

(c) Covered under a group health insurance policy evidenced by a certificate of insurance that is issued or delivered in New Hampshire.

(d) Protected, in part, by a group excess loss insurance policy where the policy or certificate of coverage has been issued or delivered in New Hampshire, and where coverage has been purchased by a group health insurance plan subject to the Employee Retirement Income Security Act of 1974, Public Law No. 93-406 (ERISA).

375:8 Reinsurance Pool; Coverage Terminated. Amend the introductory paragraph of RSA 420-K:5 to read as follows:

Beginning January 1, 2006 and ending June 30, 2008, members may reinsure with the pool health coverage provided to small employers as follows:

375:9 New Paragraphs; Reinsurance Program. Amend RSA 420-K:5 by inserting after paragraph X the following new paragraphs:

XI. Reinsurance coverage under this chapter shall terminate on December 31, 2008. Reinsurance shall be provided only for covered claims submitted within 2 years from the date the expenses on which the claim is based were incurred.

XII. A member who reinsured an eligible employee or dependent with an initial coverage date or anniversary date on or after January 1, 2008 may elect to terminate coverage for the eligible employee or dependent retroactive to the applicable initial coverage date or anniversary date occurring on or after January 1, 2008. These elections shall be made no later than July 1, 2008. The pool shall reimburse the member for the premium paid on behalf of the eligible employee or eligible dependent and the member shall reimburse the pool for any claims paid by the pool on behalf of the eligible employee or eligible dependent.

375:10 New Paragraph; Reinsurance Program. Amend RSA 420-K:6 by inserting after paragraph III the following new paragraph:

IV. The board shall have the authority to continue to impose and collect assessments pursuant to this section until the obligations of the pool have been satisfied in full. The board shall submit an annual report to the commissioner, in a manner and form determined by the commissioner, listing the association membership base, providing a count of covered lives by member, identifying changes in association membership and covered lives, describing the collection of assessments, listing payment delinquencies, and containing such other related information as the commissioner may require. The commissioner shall annually review the report on association membership, covered lives, and the payment of assessments to ensure that all insurers that should be members of the association are participating in the association and that all association members have accurately reported covered lives and paid the proper assessment. The board shall remedy any problem identified by the commissioner with respect to membership in the association, reporting of covered lives, or payment of the assessment.

375:11 Statement of Purpose. The purpose of sections 12 through 17 of this act is to clarify the original legislative intent in establishing the New Hampshire vaccine association and to ratify the manner in which the New Hampshire vaccine association has administered assessments with respect to foreign writers of health insurance. The provisions in these sections clarify that all writers of health insurance are members of the New Hampshire vaccine association, whether domestic or foreign. As members of the New Hampshire vaccine association, foreign writers of health insurance are entitled to vote for board representation and are subject to the assessment. Since its creation in 2002, foreign writers of health insurance have been treated as members of the New Hampshire vaccine association and have paid the assessment.

375:12 New Hampshire Vaccine Association; Reference Deletion. Amend RSA 126-Q:3, I to read as follows:

I. The New Hampshire vaccine association shall be comprised of all [licensed] insurers currently writing or maintaining health insurance in New Hampshire.

375:13 New Hampshire Vaccine Association; Reference Deletion. Amend RSA 126-Q:3, III(a) to read as follows:

(a) Three representatives selected from the [licensed] insurers currently writing or maintaining health insurance in New Hampshire and having the most covered lives in New Hampshire.

375:14 New Hampshire Vaccine Association; Reference Deletion. Amend RSA 126-Q:3, V(j) to read as follows:

(j) Notify, in writing, each [licensed] insurer of the insurer’s assessment by November 15 of each year.

375:15 New Hampshire Vaccine Association; Reference Deletion. Amend RSA 126-Q:4, IV to read as follows:

IV. Each [licensed] insurer writing or maintaining health insurance in New Hampshire shall be assessed in proportion to the number of its covered lives.

375:16 New Hampshire Vaccine Association; Reference Deletion. Amend RSA 126-Q:5, I to read as follows:

I. The commissioner of insurance shall fine any [licensed] insurer that fails to pay an assessment within 6 months of notification under RSA 126-Q:3, V(j). The fine shall be at least $5,000 and no more than 125 percent of the amount of the delinquent assessment. Fines so levied shall be deposited with the state treasurer to the credit of the vaccine purchase fund established pursuant to RSA 141-C:17-a.

375:17 Repeal. RSA 126-Q:1, VI, relative to the definition of “licensed insurer,” is repealed.

375:18 Effective Date. This act shall take effect July 1, 2008.

Approved: July 11, 2008

Effective Date: July 1, 2008