SB 551-FN - AS INTRODUCED
2018 SESSION
18-2869
01/03
SENATE BILL 551-FN
AN ACT relative to deductibles under health insurance policies.
SPONSORS: Sen. Sanborn, Dist 9; Sen. Avard, Dist 12; Sen. Gannon, Dist 23; Sen. Giuda, Dist 2; Sen. Reagan, Dist 17
COMMITTEE: Health and Human Services
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ANALYSIS
This bill requires insurers offering health insurance polices with coverage for prescription drugs to credit against any deductible out-of-pocket expenses for medication.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
18-2869
01/03
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Eighteen
AN ACT relative to deductibles under health insurance policies.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 New Section; Deductibles; Individual. Amend RSA 415 by inserting after section 6-u the following new section:
415:6-v Deductibles. Each insurer that issues or renews any individual policy, plan, or contract of accident or health insurance providing benefits for medical or hospital expenses and providing coverage for prescription drugs, that includes a deductible, shall credit against the deductible all out-of-pocket expenses for medication incurred by the policyholder; provided, that such medication is prescribed by a medical provider.
2 New Section; Deductibles; Group. Amend RSA 415 by inserting after section 18-z the following new section:
415:18-aa Deductibles. Each insurer that issues or renews any policy of group or blanket accident or health insurance providing benefits for medical or hospital expenses and providing coverage for prescription drugs, that includes a deductible, shall credit against the deductible all out-of-pocket expenses for medication incurred by the policyholder; provided, that such medication is prescribed by a medical provider.
3 Health Services Corporations; Applicable Statutes. Amend RSA 420-A:2 to read as follows:
420-A:2 Applicable Statutes. Every health service corporation shall be governed by this chapter and the relevant provisions of RSA 161-H, and shall be exempt from this title except for the provisions of RSA 400-A:39, RSA 401-B, RSA 402-C, RSA 404-F, RSA 415-A, RSA 415-F, RSA 415:6, II(4), RSA 415:6-g, RSA 415:6-k, RSA 415:6-m, RSA 415:6-o, RSA 415:6-r, RSA 415:6-t, RSA 415:6-u, RSA 415:6-v, RSA 415:18, V, RSA 415:18, XVI and XVII, RSA 415:18, VII-a, RSA 415:18-a, RSA 415:18-j, RSA 415:18-o, RSA 415:18-r, RSA 415:18-t, RSA 415:18-u, RSA 415:18-v, RSA 415:18-w, RSA 415:18-y, RSA 415:18-z, RSA 415:18-aa, RSA 415:22, RSA 417, RSA 417-E, RSA 420-J, and all applicable provisions of title XXXVII wherein such corporations are specifically included. Every health service corporation and its agents shall be subject to the fees prescribed for health service corporations under RSA 400-A:29, VII.
4 Health Services Corporations; Applicable Statutes; Effective January 1, 2021. Amend RSA 420-A:2 to read as follows:
420-A:2 Applicable Statutes. Every health service corporation shall be governed by this chapter and the relevant provisions of RSA 161-H, and shall be exempt from this title except for the provisions of RSA 400-A:39, RSA 401-B, RSA 402-C, RSA 404-F, RSA 415-A, RSA 415-F, RSA 415:6, II(4), RSA 415:6-g, RSA 415:6-k, RSA 415:6-m, RSA 415:6-o, RSA 415:6-r, RSA 415:6-u, RSA 415:6-v, RSA 415:18, V, RSA 415:18, XVI and XVII, RSA 415:18, VII-a, RSA 415:18-a, RSA 415:18-j, RSA 415:18-o, RSA 415:18-r, RSA 415:18-t, RSA 415:18-u, RSA 415:18-v, RSA 415:18-w, RSA 415:18-z, RSA 415:18-aa, RSA 415:22, RSA 417, RSA 417-E, RSA 420-J, and all applicable provisions of title XXXVII wherein such corporations are specifically included. Every health service corporation and its agents shall be subject to the fees prescribed for health service corporations under RSA 400-A:29, VII.
5 Health Maintenance Organizations; Statutory Construction. Amend RSA 420-B:20, III to read as follows:
III. The requirements of RSA 400-A:39, RSA 401-B, RSA 402-C, RSA 404-F, RSA 415:6-g, RSA 415:6-m, RSA 415:6-o, RSA 415:6-r, RSA 415:6-t, RSA 415:6-u, RSA 415:6-v, RSA 415:18, VII-a, RSA 415:18, XVI and XVII, RSA 415:18-j, RSA 415:18-r, RSA 415:18-t, RSA 415:18-u, RSA 415:18-v, RSA 415:18-w, RSA 415:18-y, RSA 415:18-z, RSA 415:18-aa, RSA 415-A, RSA 415-F, RSA 420-G, and RSA 420-J shall apply to health maintenance organizations.
6 Health Maintenance Organizations; Statutory Construction; Effective January 1, 2021. Amend RSA 420-B:20, III to read as follows:
III. The requirements of RSA 400-A:39, RSA 401-B, RSA 402-C, RSA 404-F, RSA 415:6-g, RSA 415:6-m, RSA 415:6-o, RSA 415:6-r, RSA 415:6-u, RSA 415:6-v, RSA 415:18, VII-a, RSA 415:18, XVI and XVII, RSA 415:18-j, RSA 415:18-r, RSA 415:18-t, RSA 415:18-u, RSA 415:18-v, RSA 415:18-w, RSA 415:18-z, RSA 415:18-aa, RSA 415-A, RSA 415-F, RSA 420-G, and RSA 420-J shall apply to health maintenance organizations.
I. Sections 4 and 6 of this act shall take effect January 1, 2021 at 12:02 a.m.
II. The remainder of this act shall take effect 60 days after its passage.
18-2869
12/29/17
SB 551-FN- FISCAL NOTE
AS INTRODUCED
AN ACT relative to deductibles under health insurance policies.
FISCAL IMPACT: [ X ] State [ X ] County [ X ] Local [ ] None
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| Estimated Increase / (Decrease) | |||
STATE: | FY 2019 | FY 2020 | FY 2021 | FY 2022 |
Appropriation | $0 | $0 | $0 | $0 |
Revenue | Indeterminable | Indeterminable | Indeterminable | Indeterminable |
Expenditures | $0 | $0 | $0 | $0 |
Funding Source: | [ X ] General [ ] Education [ ] Highway [ ] Other | |||
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COUNTY: |
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Revenue | $0 | $0 | $0 | $0 |
Expenditures | Indeterminable | Indeterminable | Indeterminable | Indeterminable |
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LOCAL: |
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Revenue | $0 | $0 | $0 | $0 |
Expenditures | Indeterminable | Indeterminable | Indeterminable | Indeterminable |
METHODOLOGY:
This bill requires insurers offering health insurance policies with coverage for prescription drugs to credit out-of-pocket expenses for medication against any deductible.
The Insurance Department indicates this bill would have an indeterminable impact on State revenue and county and local expenditures. The Department states, under this bill, the deductible would be met sooner resulting in the insurance kicking in sooner than otherwise expected. It is difficult to anticipate how the market would respond to this change. Insurers could raise deductibles or premiums or some combination of both. The insured could choose lesser coverage to avoid the increased premium. The Department states the impact on premium tax revenue deposited in the general fund is indeterminable.
The Department of Health and Human Services evaluated the impact of the proposed legislation on the Medicaid Fee for Service, Managed Care, and Premium Assistance programs. The Department states the Medicaid Fee for Service and Managed Care programs do include minimal co-payments for covered medications, but neither program has a deductible requirement. The Premium Assistance Program (PAP) under the New Hampshire Health Protection Program pays premiums for Qualified Health Plans using Medicaid funds to provide health coverage for eligible adults. The PAP includes a deductible and requires co-payments for covered medications. The PAP enrollee is not responsible for the deductible amount, which is paid by the Department with Medicaid funds, but the enrollee is responsible for prescription co-payments. Because Medicaid Fee for Service and Managed Care have no deductible requirement and the PAP enrollee is not responsible for the deductible amount, this bill would have no fiscal impact on the Department.
AGENCIES CONTACTED:
Insurance Department and Department of Health and Human Services
| Date | Body | Type |
|---|---|---|
| Jan. 16, 2018 | Senate | Hearing |
Feb. 1, 2018: Refer to Interim Study, MA, VV; 02/01/2018; SJ 3
Feb. 1, 2018: Committee Report: Referred to Interim Study, 02/01/2018; SC 5
Jan. 16, 2018: Hearing: 01/16/2018, Room 101, LOB, 02:00 pm; SC 3
Jan. 18, 2018: Introduced 01/18/2018 and Referred to Health and Human Services; SJ 2
Jan. 3, 2018: Introduced 01/03/2018 and Referred to Health and Human Services; SJ 2