SB572 (2018) Detail

Relative to the individual health insurance market.


SB 572-FN - AS INTRODUCED

 

 

2018 SESSION

18-2992

01/10

 

SENATE BILL 572-FN

 

AN ACT relative to the individual health insurance market.

 

SPONSORS: Sen. Sanborn, Dist 9; Sen. French, Dist 7; Sen. Gannon, Dist 23; Sen. Giuda, Dist 2; Sen. Innis, Dist 24; Sen. Reagan, Dist 17

 

COMMITTEE: Health and Human Services

 

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ANALYSIS

 

This bill requires insurance policies issued under the New Hampshire health protection program to be kept separately from individual insurance policies.

 

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

18-2992

01/10

 

STATE OF NEW HAMPSHIRE

 

In the Year of Our Lord Two Thousand Eighteen

 

AN ACT relative to the individual health insurance market.

 

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

 

1  New Hampshire Health Protection Program.  Amend RSA 126-A:5, XXV(g) to read as follows:

(g)  Nothing in this paragraph shall limit the existing and traditional regulatory authority of the New Hampshire insurance department under Title XXXVII with respect to private health insurance coverage in which persons are enrolled in this program under this paragraph.  In developing the program under this paragraph including drafting any necessary plan amendments or waiver requests, the commissioner shall consult with the New Hampshire insurance department as necessary to ensure that each program is designed to operate seamlessly with private insurance coverage and is consistent with all applicable insurance regulatory standards.  Insurance policies issued under this paragraph shall be kept in a separate pool from private individual health insurance policies.

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

 

LBAO

18-2992

1/5/18

 

SB 572-FN- FISCAL NOTE

AS INTRODUCED

 

AN ACT relative to the individual health insurance market.

 

FISCAL IMPACT:      [ X ] State              [    ] County               [    ] Local              [    ] None

 

 

 

Estimated Increase / (Decrease)

STATE:

FY 2019

FY 2020

FY 2021

FY 2022

   Appropriation

$0

$0

$0

$0

   Revenue

Indeterminable

Indeterminable

Indeterminable

Indeterminable

   Expenditures

Indeterminable

Indeterminable

Indeterminable

Indeterminable

Funding Source:

  [ X ] General            [    ] Education            [    ] Highway           [    ] Other

 

 

 

 

 

METHODOLOGY:

This bill would require insurance policies issued under the New Hampshire Health Protection Program to be kept in a separate pool from private individual health insurance policies.

 

The Insurance Department indicates this bill could impact premiums and premium tax revenue.  The Department states the qualified health plans (QHPs) purchased by the State for eligible individuals under the Premium Assistance Program (PAP) would be rated in a separate rating pool.  To the extent the morbidity of the PAP pool is worse than the non-PAP pool, premiums for non-PAP participants would decrease and premiums for PAP participants would increase.  A decrease in premiums for non-PAP participants may result in more non-PAP purchasers.  The Department could not determine the impact on premium tax revenues with so many unknown variables.

 

The Department of Health and Human Services assumes the reason for the creation of two distinct “pools” of individual insurance policies in the federally facilitated marketplace (those issued to PAP enrollees and those issued to non-PAP participants) is because the healthcare costs associated with PAP enrollees are higher than those for non-PAP participants and these increased costs are adversely affecting the individual insurance market.   Current law provides that federal funds will cover 94% of PAP costs in 2018, 93% of such costs in 2019 and 90% of such costs in 2020 and thereafter.  Current state law provides that no general funds may be used to support the non-federal share of the PAP.  The Department indicates the fiscal impact of this bill is indeterminable for the following reasons:

  • Under current law, the PAP will expire on December 31, 2018 and it is unclear whether it will be extended, modified, replaced, or terminated.  
  • Without detailed financial/actuarial analysis it is not possible to predict the impact on QHP premiums based on the separation of PAP enrollees from all other QHP policy holders.  
  • It is not possible to determine the fiscal impact of any increase in the premiums for the PAP population and whether the increase will affect the cost effectiveness of using the private marketplace to provide health care to the PAP population.

 

AGENCIES CONTACTED:

Department of Health and Human Services and Insurance Department

 

Links

SB572 at GenCourtMobile

Action Dates

Date Body Type
Jan. 23, 2018 Senate Hearing

Bill Text Revisions

SB572 Revision: 2937 Date: Jan. 11, 2018, 9:08 a.m.

Docket

Date Status
Jan. 3, 2018 Introduced 01/03/2018 and Referred to Health and Human Services; SJ 2
Jan. 23, 2018 Hearing: 01/23/2018, Room 101, LOB, 01:15 pm; SC 4
March 8, 2018 Committee Report: Referred to Interim Study, 03/08/2018; Vote 5-0; CC; SC 10A
March 8, 2018 Refer to Interim Study, MA, VV; 03/08/2018; SJ 6