Chapter 383

2004 -- S 2415

Enacted 07/05/04

A N A C T

RELATING TO INSURANCE

Introduced By: Senators Sheehan, Roberts, Paiva-Weed, Lenihan, and Sosnowski

Date Introduced: February 11, 2004

It is enacted by the General Assembly as follows:

     SECTION 1. Title 27 of the General Laws entitled "Insurance" is hereby amended by

adding thereto the following chapter:

CHAPTER 67

THE HEALTH INSURANCE MARKET EXPANISION ACT

27-67-1. Short title. - - This chapter shall be known and may be cited as “The Health

Insurance Market Expansion Act.”

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 with Massachusetts’

regulations would 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” 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

shall undertake a review of the existing laws and regulations pertaining to the business of health

insurance in this state and in the commonwealth of Massachusetts. On or before January 1, 2005,

the director shall submit a report to the general assembly 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.

     SECTION 2. This act shall take effect upon passage.

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LC01124

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