HOUSE BILL 523

47th legislature - STATE OF NEW MEXICO - first session, 2005

INTRODUCED BY

Ben Lujan

AN ACT

RELATING TO HEALTH CARE; PROVIDING OPTIONS FOR SMALL EMPLOYERS TO INCREASE ACCESS TO VOLUNTARY HEALTH CARE COVERAGE.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

     Section 1. Section 10-7B-1 NMSA 1978 (being Laws 1989, Chapter 231, Section 1) is amended to read:

     "10-7B-1. SHORT TITLE.--[Sections 1 through 7 of this act] Chapter 10, Article 7B NMSA 1978 may be cited as the "Group Benefits Act"."

     Section 2. Section 10-7B-2 NMSA 1978 (being Laws 1989, Chapter 231, Section 2, as amended) is amended to read:

     "10-7B-2. DEFINITIONS.--As used in the Group Benefits Act:

          A. "committee" means the group benefits committee;

          B. "director" means the director of the risk management division of the general services department;

          C. "employee" means a salaried officer, employee or legislator of the state or a salaried officer or employee of a local public body;

          D. "local public body" means any New Mexico incorporated municipality, county or school district;

          E. "professional claims administrator" means any person or legal entity that has at least five years of experience handling group benefits claims, as well as such other qualifications as the director may determine from time to time with the committee's advice; [and]

          F. "small employer" means a person having for-profit or nonprofit status that employs an average of fifty or fewer persons over a twelve-month period; and

          [F.] G. "state" or "state agency" means the state of New Mexico or any of its branches, agencies, departments, boards, instrumentalities or institutions."

     Section 3. Section 10-7B-5 NMSA 1978 (being Laws 1989, Chapter 231, Section 5) is amended to read:

     "10-7B-5. ADMINISTRATIVE COSTS.--The director, with the prior approval of the [group benefits] committee, may apportion the costs of employee benefits administration and other employee benefit costs to all participating state agencies and their employees, [and] participating local public bodies and their employees and participating small employers and persons and dependents eligible through the small employer, whether the plan is insured or self-insured."

     Section 4. A new section of the Group Benefits Act is enacted to read:

     "[NEW MATERIAL] SMALL EMPLOYER HEALTH CARE COVERAGE.--

          A. The director may enter into an agreement with a small employer to voluntarily purchase health care coverage offered pursuant to the Group Benefits Act for persons and dependents eligible through the small employer.

          B. The director may enter into agreements with an association, cooperative or mutual alliance representing small employers to provide outreach and assistance for small employers to voluntarily purchase health care coverage offered pursuant to the Group Benefits Act for persons and dependents eligible through the small employer.

          C. The director shall only permit voluntary purchase of health care coverage by small employers if the small employer has not offered health care coverage to persons and dependents eligible through a small employer for a period of at least twelve months prior to enrollment in the coverage offered pursuant to the Group Benefits Act.

          D. A separate account shall be maintained for small employers that voluntarily elect to purchase health care coverage offered pursuant to the Group Benefits Act to provide separate accounting, payment and private funding of health care coverage for small employers. The funds in the small employers account shall be maintained separately in actuarially sound condition as evidenced by an annual written certification of a qualified actuary."

     Section 5. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2005.

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