SB 149 - AS AMENDED BY THE SENATE
03/16/2017 0796s
2017 SESSION
17-0814
01/10
SENATE BILL 149
AN ACT authorizing individuals and certain businesses to purchase health insurance from out-of-state companies.
SPONSORS: Sen. Sanborn, Dist 9; Sen. French, Dist 7; Rep. Pearl, Merr. 26; Rep. Cordelli, Carr. 4; Rep. Vose, Rock. 9
COMMITTEE: Health and Human Services
-----------------------------------------------------------------
This bill authorizes individuals and certain businesses to purchase health insurance from out-of-state companies. The bill grants rulemaking authority to the insurance commissioner for the purposes of the bill.
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
03/16/2017 0796s 17-0814
01/10
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Seventeen
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-I the following new chapter:
CHAPTER 404-J
HEALTH CARE INSURANCE FROM
OUT-OF-STATE INSURANCE COMPANIES
404-J: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; provided that such state is a member of the National Association of Insurance Commissioners (NAIC).
404-J:2 Rulemaking. The commissioner shall adopt rules, pursuant to RSA 541-A, relative to procedures for resolution of disputes, including hearing procedures.
404-J: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-J: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 Applicability. If the 10 essential benefits under the Patient Protection and Affordable Care Act of 2009, as amended, are changed or eliminated, an out-of-state insurance company offering health insurance plans in New Hampshire shall offer 2 plans, one of which shall be inclusive of all requirements of New Hampshire law. The insurance department shall determine to what extent any benefits under such Act have changed as certified to the secretary of state and the director of legislative services.
3 Effective Date. This act shall take effect 60 days after its passage.
17-0814
Amended 3/31/17
SB 149- FISCAL NOTE
AS AMENDED BY THE SENATE (AMENDMENT #2017-0796s)
FISCAL IMPACT: [ X ] State [ X ] County [ X ] Local [ ] None
|
| |||
| Estimated Increase / (Decrease) | |||
STATE: | FY 2018 | FY 2019 | FY 2020 | FY 2021 |
Appropriation | $0 | $0 | $0 | $0 |
Revenue | Indeterminable | Indeterminable | Indeterminable | Indeterminable |
Expenditures | $0 | $0 | $0 | $0 |
Funding Source: | [ X ] General [ ] Education [ ] Highway [ ] Other | |||
|
|
|
|
|
COUNTY: |
|
|
|
|
Revenue | $0 | $0 | $0 | $0 |
Expenditures | Indeterminable | Indeterminable | Indeterminable | Indeterminable |
|
|
|
|
|
LOCAL: |
|
|
|
|
Revenue | $0 | $0 | $0 | $0 |
Expenditures | Indeterminable | Indeterminable | Indeterminable | Indeterminable |
METHODOLOGY:
The Department of Insurance assumes this bill permits non-New Hampshire licensed companies, who are licensed to sell in other states, to sell forms approved in other states in New Hampshire without being licensed and without forms being approved. The Department assumes this bill would prohibit a licensed New Hampshire company, which is licensed in another State, from selling products in New Hampshire that have not been approved for use in New Hampshire. The Department assumes this bill would create a new category of unauthorized insurance, as defined pursuant to RSA 406-B, and further assumes the applicable premium tax rate for this newly created insurance type is 4 percent. The applicable premium tax rate for New Hampshire licensed companies is 2 percent. The Department states to estimate the impact on the insurance premium tax, an anti-selection assumption would have to be made. Anti-selection refers to a situation in which insurance purchasers have relevant information that the sellers lack. Anti-selection usually involves a pricing spiral. Products that are required to have New Hampshire mandates would be expected to increase in price as these will be the ones that are anti-selected against. Due to the many varying assumptions that must be made, the Department is unable to develop an estimate of the fiscal impact of this bill. The impact on county and local expenditures, relative to insurance costs, is indeterminable.
AGENCIES CONTACTED:
Department of Insurance
| Date | Body | Type |
|---|---|---|
| Feb. 14, 2017 | Senate | Hearing |
| March 16, 2017 | Senate | Floor Vote |
: Inexpedient to Legislate, Adjournment, Senate Rule 3-23; SJ 1
June 22, 2017: Inexpedient to Legislate, Senate Rule 3-23, Adjournment 06/22/2017; SJ 1
March 16, 2017: Pending Motion OT3rdg; 03/16/2017; SJ 9
March 16, 2017: Sen. Sanborn Moved Laid on Table, MA, VV; 03/16/2017; SJ 9
March 16, 2017: The Chair rescinded OT3rdg, 03/16/2017; SJ 9
March 16, 2017: Ought to Pass with Amendment 2017-0796s, RC 14Y-9N, MA; OT3rdg; 03/16/2017; SJ 9
March 16, 2017: Committee Amendment # 2017-0796s, AA, VV; 03/16/2017; SJ 9
March 16, 2017: Committee Report: Ought to Pass with Amendment # 2017-0796s, 03/16/2017; SC 14
Feb. 14, 2017: Hearing: 02/14/2017, Room 101, LOB, 01:45 pm; SC 10
Jan. 19, 2017: Introduced 01/19/2017 and Referred to Health and Human Services; SJ 5