Bill Text - HB616 (2011)

Relative to coverage for divorced spouses.


Revision: Feb. 1, 2011, midnight

HB 616-FN – AS INTRODUCED

2011 SESSION

11-0695

01/10

HOUSE BILL 616-FN

AN ACT relative to coverage for divorced spouses.

SPONSORS: Rep. Headd, Rock 3

COMMITTEE: Commerce and Consumer Affairs

ANALYSIS

This bill clarifies insurance coverage for divorced spouses.

This bill is a request of the insurance department.

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

11-0695

01/10

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Eleven

AN ACT relative to coverage for divorced spouses.

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

1 Group Health Insurance; Continuation of Coverage for Divorced or Legally Separated Spouses. Amend RSA 415:18, XVI(c) to read as follows:

(c) Periods of coverage shall be as follows:

(1) Eighteen month period--When any individual loses coverage under a group health insurance plan for any reason except dismissal from employment for gross misconduct or carrier termination, coverage shall continue subject to this section for a period of 18 months, unless the individual is eligible for coverage under subparagraphs (2), (3), (4), or (5).

(2) Thirty-nine week period (entire group insurance termination)--Whenever the entire group is terminated, coverage shall continue subject to this section for a period of 39 weeks. Where an individual has continuation coverage, coverage shall continue until it would have expired had the plan not been terminated or for 39 weeks, whichever occurs first.

(3) Twenty-nine month period (disability)--An individual who is determined to be disabled within the first 60 days of the date such individual loses coverage shall be entitled to 29 months of continuation coverage. Determination of disability shall be under Title II or XVI of the federal Social Security Act or any future act that has the same purpose.

(4) Seventy-two month period--Subject to subparagraph (e), coverage shall continue subject to this section for a period of 72 months if any individual loses coverage under a group health insurance plan due to the divorce or the legal separation of the covered employee.

(5) Thirty-six month period--Subject to subparagraph (e), coverage shall continue subject to this section for a period of 36 months if any individual loses coverage under a group health insurance plan for one of the following reasons:

(A) Death of a covered employee;

(B) [The divorce or the legal separation of the covered employee or, if the employee’s former spouse has been covered pursuant to RSA 415:18, VII-b, the first occurring of any of the following events:

(i) The remarriage of the covered employee;

(ii) The death of the covered employee;

(iii) The 3-year anniversary of the final decree of divorce or legal separation; or

(iv) Such earlier time as provided by said decree;

(C)] A substantial loss of coverage by retirees and dependents within one year of the employer filing for protection under the bankruptcy provisions of Title 11 of the United States Code; or

[(D)] (C) A dependent child ceasing to be a dependent child.

[(5)] (6) Eligible for Medicare--When the surviving spouse, divorced spouse, or legally separated spouse is 55 years of age or older and loses coverage because of the death, divorce, or legal separation of the covered employee, coverage shall continue subject to this section until such time as the spouse becomes eligible for participation in another employer-based group plan or becomes eligible for Medicare.

2 Group Health Insurance; Election Requirements and Procedures. Amend RSA 415:18(g)(2) to read as follows:

(2) Where the employee’s spouse is also covered by the group plan, and there is a divorce or legal separation, the employee shall notify the employer of the divorce or separation within 30 days, and shall provide the employer and carrier with the employee’s spouse’s mailing address. In case of a divorce or legal separation, the carrier shall provide a separate notice of the right to continue to the divorced or separated spouse. The divorced or separated spouse may elect to continue coverage pursuant to this section by notifying the carrier within 45 days of the date of the notice and remitting the premium payment. [The notice and election provisions of this paragraph shall also apply if the divorced or legally separated spouse of the employee has been covered pursuant to RSA 415:18, VII-b, upon the occurrence of any of the following events:

(A) The remarriage of the employee;

(B) The death of the employee;

(C) The 3-year anniversary of the final decree of divorce or legal separation; or

(D) Such earlier time as provided by the final decree of divorce or legal separation.]

3 Student Insurance; Reference Deletion. Amend RSA 415:19-a, III to read as follows:

III. Be considered large group coverage, subject to all applicable laws and rules that generally apply to large group accident and health insurance coverage, except those set forth in RSA 420-G and RSA 415:18, VII, VII-a, [VII-b,] XVI, and XVII.

4 Group Insurance Plans; Divorce. Amend RSA 458:18-a to read as follows:

458:18-a Group Insurance Plans. Upon a decree of nullity, divorce, or legal separation, if one spouse is a member of a group health insurance plan and the employer or any other sponsor is responsible for the payment of the premium required by the insurer as the consideration for providing coverage to an ex-spouse, such premium shall be paid either by the health insurance plan member, the ex-spouse of the member, or by both the member and the ex-spouse as they shall agree or as shall be ordered in the decree of divorce by the court. The provisions of this section shall apply to dental coverage provided by such group health insurance plan and shall apply whether or not the ex-spouse is receiving child support payments. This section shall apply only to continued coverage under RSA 415:18, XVI or 29 U.S.C. section 1161[, and shall not affect or limit any rights of the former spouse under RSA 415:18, VII-b].

5 Repeal. RSA 415:18, VII-b, relative to insurance coverage for divorced or legally separated spouses, is repealed.

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

LBAO

11-0695

01/21/11

616-FN - FISCAL NOTE

AN ACT relative to coverage for divorced spouses.

FISCAL IMPACT:

    Due to time constraints, the Office of Legislative Budget Assistant is unable to provide a fiscal note for this bill at this time. When completed, the fiscal note will be forwarded to the House Clerk's Office.