Chapter 053
2010 -- S 2629
Enacted 06/12/10
A N A C T
RELATING TO INSURANCE - EXTENDED MEDICAL BENEFITS
Introduced
By: Senators DeVall, and
Date Introduced: March 04, 2010
It is enacted by the
General Assembly as follows:
SECTION 1. Section 27-19.1-1 of the General Laws in Chapter
27-19.1 entitled
"Extended Medical
Benefits" is hereby amended to read as follows:
27-19.1-1.
Medical benefits for those who lose eligibility to participate.
-- (a)
Whenever the employment of an insured member of a
group hospital, surgical, dental, vision or
medical insurance plan is terminated because of involuntary
layoff or death, or as a result of the
workplace ceasing to exist, or the permanent reduction in size
of the workforce, the benefits of
the plan may be continued as provided in this section for
a period of up to eighteen (18) months
from the termination date of the insured member, but in
any event not to exceed the shorter of the
period which represents the period of continuous employment
preceding termination with the
employer under whose contract the member is insured or the
time from the termination date of the
insured member until the member, surviving spouse of a
deceased member, and any other
dependent(s) of the member who were covered under the plan,
becomes employed by another
group and eligible for benefits under another group plan.
(b) The extended
coverage for the period defined in subsection (a) of this section shall be
available to the terminated member the surviving spouse of a
deceased member, and any other
dependent(s) of the member who were covered under the plan, at the
same monthly premium rate
or subscription fee for the group in which he or she was
previously a member or at a monthly
premium rate or subscription fee as may be in effect from
time to time for the same group
subsequent to his or her qualification under subsection (a) of
this section. The terminated
member, the surviving spouse of a deceased member, and any
other dependent(s) of the member
who were covered under the plan, shall not be required to
pay more than a monthly premium rate
or subscription fee per month at one time.
(c) The involuntarily
laid off member or other member qualifying under subsection (a) of
this section, the surviving spouse of a deceased member,
and any other dependent(s) of the
member who were covered under the plan, may elect to
continue participation in the group plan
within thirty (30) days after the member's qualification
under subsection (a) of this section. The
involuntarily laid off member, the surviving spouse of a deceased
member, and any other
dependent(s) of the member who were covered under the plan shall
be responsible for the
payment of monthly premiums rates or subscription fees
directly to the carrier of the surgical,
hospital, or medical insurance plan, or the group plan's agent
or insurance producer, throughout
the extended coverage period, if the member had been
covered under a group plan consisting of
fifty (50) members or less. Those leaving group plans with
more than fifty (50) members shall be
responsible directly to the employer for the payment of monthly
premiums rates or subscription
fees, or directly to the carrier if the workplace ceases
to exist. The terminated member, the
surviving spouse of a deceased member, and any other
dependent(s) of the member who were
covered under the plan, shall not be required to pay more
than a monthly premium rate or
subscription fee per month at one time.
(d) After timely
receipt of the monthly premium rate or subscription fee, as defined in
this subsection, from the qualifying member, the surviving
spouse of a deceased member, and any
other dependent(s) of the member who were covered under the
plan, if the employer fails to make
payment to the carrier with the result that coverage is
terminated, the employer shall be liable for
benefits to the same extent as the carrier would have been
liable if coverage had not been
terminated. "Timely receipt" of the monthly premium
payment means the employer's receipt of
the monthly premium rate or subscription fee for the
extended coverage from the qualifying
member, the surviving spouse of a deceased member, and any
other dependent(s) of the member
who were covered under the plan within the dates or by
the date indicated by the employer as a
requirement of this chapter at the time of the election of the
extended coverage. This subsection
shall not apply to an employer whose workplace ceases to
exist.
(e) Upon termination of
the extended coverage period, the qualifying member, the
surviving spouse of a deceased member, and any other
dependent(s) of the member who were
covered under the plan shall be entitled to exercise any
option which is provided in the group plan
to elect a converted policy.
(f) All employers who
provide their employees a group hospital, surgical, or medical
insurance plan shall post a conspicuous notice to the employees
of their options under the
provisions of this chapter.
(g) "Group
hospital, surgical, dental, vision, or medical insurance plan" as
used herein in
this section includes any service plan contract of a
medical or health service plan corporation.
"Carrier" as used in this section means shall
mean any insurance company which is the insurer of
the group hospital, surgical, dental, vision, or
medical plan or the medical, dental, optometric, or
health service plan corporation which provides the group
service plan contract, either of which an
employer provides for his or her employees.
(h) This chapter shall
not apply to an employee who is employed in the construction
industry or his or her employer if the employee, at the time
benefits could be selected under this
chapter, is a participant in, and the employer is a
contributor to, a multi-employer welfare plan as
defined in 29 U.S.C. section 1301 et seq., and which the
internal revenue service has determined
is tax exempt as to contributions received and as to
benefits received by its participants.
(i)
Notwithstanding any section to the contrary, any member who qualified for the
extended coverage as defined in subsection (a) on or after
September 1, 2008 but who declined to
elect coverage within the timeframe as described within
subsection (c) may elect, no later than
May 1, 2009, to resume coverage
under this section. Coverage
elected under this subsection shall
commence March 1, 2009 and may be continued as defined in
subsection (a).
SECTION 2. This act shall take effect upon passage.
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LC02082
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