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.

     

=======

LC01673/SUB B/2

=======