SENATE BILL 663

48th legislature - STATE OF NEW MEXICO - first session, 2007

INTRODUCED BY

Sue Wilson Beffort

AN ACT

RELATING TO SMALL EMPLOYER HEALTH COVERAGE; REQUIRING NEW EMPLOYERS THAT PURCHASE COVERAGE PURSUANT TO THE GROUP BENEFITS ACT TO HAVE A NO-SMOKING POLICY FOR ITS EMPLOYEES.

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

     Section 1. Section 10-7B-6.1 NMSA 1978 (being Laws 2005, Chapter 301, Section 4 and Laws 2005, Chapter 305, Section 4) is amended to read:

     "10-7B-6.1. 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; provided, however, that the small employer has a policy that prohibits the hiring of a person who smokes or uses tobacco products and the policy has been in place at least one year prior to the effective date of the health care coverage.

          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, including verification that the premiums charged are actuarially sound in relation to the benefits provided. This certification shall be filed with the superintendent of insurance."