Revision: March 13, 2013, midnight
HB 526-FN – AS INTRODUCED
2013 SESSION
01/04
HOUSE BILL 526-FN
AN ACT relative to a reinsurance mechanism for the individual health insurance market.
COMMITTEE: Commerce and Consumer Affairs
This bill requires the insurance commissioner to seek approval from the United States Department of Health and Human Services to administer the federal reinsurance program for the individual market under the Patient Protection and Affordable Care Act of 2009.
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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
13-0541 01/04
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Thirteen
AN ACT relative to a reinsurance mechanism for the individual health insurance market.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Individual Health Insurance Market; Purpose. Amend RSA 404-G:1, IV to read as follows:
IV. Authorize the association to establish a federally qualified high risk pool pursuant to section 1101 of the Patient Protection and Affordable Care Act of 2009 (PL 111-148), as amended by the Health Care and Education Reconciliation Act of 2010 (PL 111-152) (hereinafter “the Act”).
V. Mitigate the transition to new market rules by operating the federal transitional reinsurance program under section 1341 of the Act and by creating the option of establishing a supplemental state reinsurance mechanism.
2 New Section; Reinsurance Program. Amend RSA 404-G by inserting after section 5-g the following new section:
404-G:5-h Reinsurance Program.
I. The association shall, in coordination with the commissioner, seek approval from the United States Department of Health and Human Services to administer the federal reinsurance program established under section 1341 of the Act for the state of New Hampshire.
II. The commissioner shall adopt rules, pursuant to RSA 541-A, establishing any necessary elements of the federal reinsurance program and any specific parameters that are subject to determination by the state.
III. The commissioner may elect to enhance the federal reinsurance program with additional state based assessments on such writers and markets as may be designated by the commissioner to the extent necessary to maintain market stability. These enhancements shall be established by rule and the program shall be administered by the association to establish efficiencies and economies for participating carriers.
IV. The enhanced program may continue for a maximum period of 2 years beyond the expiration of the federal program.
V. In addition to the powers and duties under RSA 404-G:3, the association shall have the following powers and duties to:
(a) Establish and collect assessments, as authorized by the commissioner, to fund the reinsurance program enhancements.
(b) Adjudicate reinsurance claims in accordance with the program parameters established by the commissioner.
(c) Enter into contracts with the Secretary of the United States Department of Health and Human Services, subject to review and approval by the commissioner, to operate the federal reinsurance program.
(d) Enter into agreements as necessary with the United States Treasury related to the collection and disbursement of funds.
(e) Audit any carrier participating in the reinsurance program as either a claimant or assessee.
VI. The board of directors of the association shall adopt a plan of operation for the reinsurance program. Such plan shall be subject to the commissioner’s review and approval to ensure its compliance with this section and any rules adopted pursuant to this section.
3 Effective Date. This act shall take effect upon its passage.
LBAO
13-0541
01/15/13
HB 526-FN - FISCAL NOTE
AN ACT relative to a reinsurance mechanism for the individual health insurance market.
FISCAL IMPACT:
The Insurance Department states this bill, as introduced, will have an indeterminable fiscal impact on state, county and local expenditures, and state general fund revenue in FY 2013 and each year thereafter. There is no fiscal impact on county and local revenue.
METHODOLOGY:
The Insurance Department states this bill would allow the State to administer the temporary federal reinsurance program, which includes self-funded plans in the assessment base, and to administer a temporary state reinsurance program. The Department expects carriers will include a provision in premium rates for assessment liabilities, but it is not clear how purchasers will respond. The Department is not able to estimate the impact on the premium tax collections. The Department assumes some purchasers will buy down in order to hold their premium outlays relatively constant. As a result the Department is not able to determine how this bill will impact state, county and local expenditures.