Bill Text - SB452 (2010)

(New Title) relative to jurisdiction over certain health insurers.


Revision: March 4, 2010, midnight

SB 452-FN – AS AMENDED BY THE SENATE

03/03/10 0872s

2010 SESSION

10-2736

01/09

SENATE BILL 452-FN

AN ACT relative to jurisdiction over certain health insurers.

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

AMENDED ANALYSIS

This bill clarifies the jurisdiction of the insurance department over certain health insurers.

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

03/03/10 0872s

10-2736

01/09

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Ten

AN ACT relative to jurisdiction over certain health insurers.

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

1 Insurance Department; Jurisdiction Over Certain Health Insurers. Amend RSA 415:23, I-IV to read as follows:

I. Notwithstanding any other provision of law, and except as provided in this section, any person or other entity, whether domestic or foreign, which provides coverage in this state for medical, surgical, chiropractic, physical therapy, speech pathology, audiology, professional mental health, dental, hospital, or optometric expenses, whether such coverage is by direct payment, reimbursement, or otherwise, shall be presumed to be subject to the jurisdiction of the department unless the person or other entity shows that, while providing such services, it is subject to the jurisdiction of another agency of this or another state or of the federal government. The provisions of this section shall not apply to dental service corporations established by 1961, 345 or vision service corporations established by 1969, 614.

II. A person or entity may show that it is subject to the jurisdiction of another agency or department of this [ or another] state or of the federal government by providing to the commissioner the appropriate certificate or license issued by the other governmental agency which permits or qualifies it to provide those services for which it is licensed or certificated.

III. Any person or entity which is unable to show that it is subject to the jurisdiction of another agency of this [or another] state or of the federal government shall submit to an examination by the commissioner to determine the organization and solvency of the person or the entity and to determine whether or not such person or entity is in compliance with the applicable provisions of Title XXXVII.

IV. Any person or entity unable to show that it is subject to the jurisdiction of another agency of this [or another] state or of the federal government shall be subject to all appropriate provisions of Title XXXVII regarding the conduct of its business.

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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