Bill Text - SB452 (2010)

Authorizing individuals and certain businesses to purchase health insurance from out-of-state insurance companies.


Revision: Jan. 12, 2010, midnight

SB 452-FN – AS INTRODUCED

2010 SESSION

10-2736

01/09

SENATE BILL 452-FN

AN ACT authorizing individuals and certain businesses to purchase health insurance from out-of-state insurance companies.

SPONSORS: Sen. Bradley, Dist 3; Sen. Barnes, Jr., Dist 17; Sen. Bragdon, Dist 11; Sen. Carson, Dist 14; Sen. Downing, Dist 22; Sen. Gallus, Dist 1; Sen. Letourneau, Dist 19; Sen. Odell, Dist 8; Sen. Roberge, Dist 9; Rep. Wendelboe, Belk 1; Rep. Renzullo, Hills 27

COMMITTEE: Commerce, Labor and Consumer Protection

ANALYSIS

This bill authorizes individuals and certain businesses to purchase health insurance from out-of-state insurance companies. The bill grants rulemaking authority to the insurance commissioner for the purposes of the bill.

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

10-2736

01/09

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Ten

AN ACT authorizing individuals and certain businesses to purchase health insurance from out-of-state insurance companies.

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

1 New Chapter; Health Care Insurance From Out-of-State Insurance Companies. Amend RSA by inserting after chapter 404-H the following new chapter:

CHAPTER 404-I

HEALTH CARE INSURANCE FROM

OUT-OF-STATE INSURANCE COMPANIES

404-I:1 Health Care Insurance Purchased From Out-of-State Insurance Companies Authorized; Plan Requirements.

I. In this chapter “commissioner” means the insurance commissioner.

II. An individual who is a resident of this state or an employer with under 100 employees may purchase health insurance from out-of-state health insurance carriers which are approved by the state where the carrier does business.

404-I:2 Rulemaking. The commissioner shall adopt rules, pursuant to RSA 541-A, relative to:

I. Form and content of applications for health insurance under this chapter.

II. Further definition of employer, if appropriate.

III. Procedures for resolution of disputes, including hearing procedures.

404-I:3 Applicability. This chapter shall not be construed to require the out-of-state insurers to offer or provide state-mandated health benefits required by New Hampshire law or rules in health insurance policies sold to New Hampshire residents.

404-I:4 Resolution of Disputes. Resolution of disputes between the insurer and the insured shall take place in New Hampshire in accordance with rules adopted by the commissioner under RSA 541-A.

2 Effective Date. This act shall take effect 60 days after its passage.

LBAO

10-2736

01/11/10

SB 452-FN - FISCAL NOTE

AN ACT authorizing individuals and certain businesses to purchase health insurance from out-of-state insurance companies.

FISCAL IMPACT:

      The Insurance Department states this bill may decrease state revenue and have an indeterminable fiscal impact on county and local expenditures in FY 2010 and each year thereafter. There is no fiscal impact on county and local revenue or state expenditures.

METHODOLOGY:

    The Insurance Department states this bill will authorize individuals and certain businesses to purchase health insurance from out-of-state insurance companies. The Department states this bill does not contain a mechanism for the Department to collect premium tax from the non-NH-licensed companies that do business in New Hampshire. The Department states to the extent insurance is purchased from the out-of-state insurance companies, premium tax revenue will decrease. The Department is also funded through assessments against licensed NH insurance carriers. This bill does not contain a provision or provide authority through rulemaking to allow the Department to assess against the non-NH-licensed companies that do business in New Hampshire. This will result in the assessments for NH licensed companies increasing. Since the assessments are recouped through premiums, those who purchase insurance from NH licensed companies will experience an increase in premium cost. The Department states this bill will have an indeterminable fiscal impact on county and local expenditures as the Department is not able to determine the premiums that would be offered by the governments purchase insurance from NH licensed insurance companies impacted by the non-NH-licensed companies or the impact of increased assessments on the licensed NH companies.

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