HB 1597-FN – AS INTRODUCED
2010 SESSION
01/09
HOUSE BILL 1597-FN
AN ACT relative to employer-provided health insurance coverage and prohibiting denial of coverage for preexisting conditions.
COMMITTEE: Commerce and Consumer Affairs
This bill requires continuation of insurance coverage in the event of job loss until such time as the individual becomes eligible for other coverage or Medicare. This bill also prohibits denial of coverage for preexisting conditions.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
10-2446
01/09
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Ten
AN ACT relative to employer-provided health insurance coverage and prohibiting denial of coverage for preexisting conditions.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Accident and Health Insurance; Continuation of Coverage. RSA 415:18, XVI(c) is repealed and reenacted to read as follows:
(c) An individual shall be entitled to continuation of coverage under this paragraph until such time as the individual becomes eligible for participation in another employer-based group plan or becomes eligible for Medicare.
2 Preexisting Conditions. RSA 415-A:5, I is repealed and reenacted to read as follows:
I. An insurer shall not deny any person an insurance policy based on a preexisting condition. An insurer may impose a term, not to exceed 9 months, to cover the expenses associated with the preexisting condition.
3 Preexisting Conditions; Group. Amend RSA 415:18, VII(b) to read as follows:
(b) The effective date of the individual policy shall be the date of the termination of the individual's insurance under the group policy. The individual policy shall not exclude any [other] preexisting condition.
4 Effective Date. This act shall take effect 60 days after its passage.
LBAO
10-2446
12/08/09
HB 1597-FN - FISCAL NOTE
AN ACT relative to employer-provided health insurance coverage and prohibiting denial of coverage for preexisting conditions.
FISCAL IMPACT:
The Insurance Department states this bill may increase state general fund revenue by an indeterminable amount in FY 2011 and each year thereafter and may increase county expenditures and local expenditures by an indeterminable amount in FY 2010 and each year thereafter. The New Hampshire Association of Counties and the New Hampshire Municipal Association state this bill may increase county and local expenditures in FY 2010 and each year thereafter. There is no fiscal impact on county and local revenue or state expenditures.
METHODOLOGY:
The Insurance Department states this bill allows individuals that are no longer eligible for group coverage would be entitled to a continuation in coverage until they become eligible for other group coverage or Medicare, broadens the scope and applicability of the preexisting condition limitation, and eliminates the preexisting condition waiting period that may have been imposed on individuals insured under a group policy at the time the coverage is converted to individual coverage issued by a high risk pool. To the extent these changes result in premium increases, premium tax revenue will increase. County and local expenditures would increase to the extent they purchase insurance and the insurance companies have increased rates as a result of the changes contained in this bill. Neither the State health plan nor its third party administrator facilitating the plan would be subject to this legislation because the State is self-insured.
The Department of Administrative Services states the self-funded program is not subject to the insurance laws, thus it does not have a fiscal impact on the state health insurance program. However, if the State was to provide continuation of insurance coverage in the event of a job loss until the individual becomes eligible for other coverage or Medicare, it is estimated it would cost approximately $540 per former employee per month.
The New Hampshire Association of Counties states this bill may increase county expenditures by an indeterminable amount. Expenditures will increase to the extent health insurance
LBAO
10-2446
12/08/09
providers increase premium rates as a result of the continuation of insurance coverage and prohibiting the denial of coverage for preexisting conditions.
The New Hampshire Municipal Association states this bill may increase local expenditures by an indeterminable amount. Expenditures will increase to the extent health insurance providers increase premium rates as a result of the continuation of insurance coverage and prohibiting the denial of coverage for preexisting conditions.