Chapter
099
2008 -- S 2286 SUBSTITUTE B
Enacted 06/26/08
A N A C T
RELATING TO INSURANCE
-- HEALTH INSURANCE MARKET EXPANSION
Introduced By: Senators Sheehan, Perry, Sosnowski, Paiva-Weed, and Walaska
Date Introduced: February 07,
2008
It is
enacted by the General Assembly as follows:
SECTION
1. Sections 27-67-2, 27-67-3 and 27-67-4 of the General Laws in Chapter 27-
67
entitled "The Health Insurance Market Expansion Act" are hereby
amended to read as follows:
27-67-2.
Findings. -- The general assembly finds and declares that:
(1) Rhode Island has a proud history of health insurance companies including
health
insurance
corporations, health maintenance organizations, nonprofit hospital service
corporations,
and
nonprofit medical service corporations doing business in this state;
(2) Nationally and regionally, insurance corporations, health maintenance
organizations,
hospital
service corporations and medical service corporations, are being consolidated
or are
departing
from some state insurance markets. Rhode Island is one of twelve (12) states
with three
(3) or
fewer health insurers active in the group insurance market;
(3) One reason cited for the departure of health insurers from the state of Rhode
Island is
the size
of our population. States with larger populations offer a greater opportunity
for
competition
and profit; and
(4) A regional approach to health insurance that joins Rhode Island's health
insurance
market
with those of the other New
England states Massachusetts' regulations would may
expand
the
opportunities for regional insurers to offer insurance in Rhode Island.
27-67-3.
Definitions. -- (1) "Department" means the department of
business regulation;
(2) "Director" means the director of the department of business
regulation;
(3) "Health insurance corporation, health maintenance organization,
nonprofit hospital
service
corporation or nonprofit medical service corporation" "Health insurer", means the health
insurance
corporation, health maintenance organization, nonprofit hospital service
corporation or
nonprofit
medical service corporation as defined in chapters 1, 18, 19 and 20 of this
title.
27-67-4.
Establishment of a regional health insurance market. – (a) The
director The
health
insurance commissioner shall
undertake a review of the existing laws and regulations
pertaining
to the business of health insurance in this state, and in other New
England states the
commonwealth
of Massachusetts. On or before March
January 1, 2005 2009, the director the
health
insurance commissioner shall submit a
report to the general assembly on what changes
would
be necessary to the laws and/or regulations of Rhode Island in order to meet
the goal of
enabling
health insurers licensed in other New England states to do business in Rhode
Island
without
a separate application for licensure in Rhode Island. The report shall address
the extent
to
which licensure is a barrier to bringing other health insurers into the Rhode
Island market. The
report
shall further address the manner in which licensure can be automatically
granted to those
insurers
licensed in other New England states while still requiring that such insurers
otherwise
remain
bound by the non-licensure related laws and regulations governing the
administration of
health
insurance benefit plans in Rhode Island.
recommending needed revisions in Rhode Island
law
to reconcile with that of Massachusetts. The director shall also delineate a timetable
for
regulatory
change and cooperative agreements with the insurance commissioner in
Massachusetts
to
effectuate a seamless health insurance market incorporating both states. The report shall
include
an analysis of barriers to the creation of a regional health insurance market
and a
proposed
timeline for implementing all changes that would be needed to establish a
regional
health
insurance market.
SECTION
2. This act shall take effect upon passage.
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LC01673/SUB B/2
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