HB 1194

AN ACT relative to employer-sponsored group health insurance plans, relative to certain technical changes in the insurance laws, and establishing a study committee on employer-sponsored group health insurance plans and cancellations of such plans.

SPONSORS: Rep. Taylor, Straf 11

This bill requires employers offering group health insurance plans to their employees to notify the health insurance carrier of the amount of employee contribution. The bill also requires such an employer to escrow employees' contributions, if the insurance commissioner is notified of the employer's delinquency regarding the payment of the premium.

This bill makes certain technical changes to certain appeal procedures under the insurance laws.

The bill also establishes a committee to study employer-sponsored group health insurance plans and cancellation of such plans.

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

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

1 New Subdivision; Employer-Sponsored Group Health Insurance Plan. Amend RSA 415 by inserting after section 24 the following new subdivision:

I. Any employer offering a group health insurance plan under this chapter, RSA 420-A, or RSA 420-B to its employees shall notify the health insurance carrier of the amount of such employer's employee contributions for such plan.

II. The health insurance carrier shall notify the insurance commissioner in the event that an employer is over 31 days delinquent regarding the payment of the premium.

2 New Subdivision; Employer-Sponsored Group Health Insurance Plans. Amend RSA 275 by inserting after section 60 the following new subdivision:

275:61 Employer-Sponsored Group Health Insurance Plans; Escrow Required. Following one notification of delinquency under RSA 415:25, II, an employer offering a group health insurance plan, issued pursuant to RSA 415, RSA 420-A, or RSA 420-B, to its employees shall maintain an escrow account or accounts, separate and apart from an individual or office account, into which all employee contributions for such health insurance plan shall be deposited. The escrow account or accounts shall be maintained in an insured financial institution within the state of New Hampshire. The employer shall certify to the health insurance carrier that such an account has been established.

3 Standards for Accident and Health Insurance; Appeal Procedure. Amend RSA 415-A:4-b, I(a) to read as follows:

(a) The person or persons reviewing the grievance shall not be the same person or persons making the initial determination, shall not be subordinate to [~~or the supervisor of~~] the person making the initial determination, and shall act as a fiduciary;

4 Managed Care Law; Grievance Procedures. Amend RSA 420-J:5, I(a) to read as follows:

(a) The persons reviewing the grievance shall not be the same person or persons making the initial determination, and shall not be subordinate to [~~or the supervisor of~~] the person making the initial determination;

5 Committee Established. There is established a committee to study employer-sponsored group health insurance plans and cancellations of such plans.

(b) Three members of the house of representatives, appointed by the speaker of the house.

II. Members of the committee shall receive mileage at the legislative rate when attending to the duties of the committee.

7 Duties. The committee shall study employer-sponsored group health insurance plans and cancellations of such plans.

8 Chairperson; Quorum. The members of the study committee shall elect a chairperson from among the members. The first meeting of the committee shall be called by the first-named senate member. The first meeting of the committee shall be held within 45 days of the effective date of this section. Four members of the committee shall constitute a quorum.

9 Report. The committee shall report its findings and any recommendations for proposed legislation to the senate president, the speaker of the house of representatives, the senate clerk, the house clerk, the governor, and the state library on or before November 1, 2002.