Chapter
160
2008 -- H 7493 SUBSTITUTE B
Enacted 07/01/08
A N A C T
RELATING TO INSURANCE
-- HEALTH INSURANCE MARKET EXPANSION
Introduced By: Representatives Ferri, Lewiss, Baldelli-Hunt, Malik, and Winfield
Date Introduced: February
13, 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"
(2)
“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. -- 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 the
commonwealth of
Massachusetts other New England states. On or before January
1, 2005 March 1, 2009, the
director the health insurance commissioner 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. 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 policy implications of implementing the identified
changes in law
and
regulations, and the potential advantages and disadvantages of creating a
regional health
insurance
market.
The
report shall further 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.
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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LC01193/SUB B
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