0001| HOUSE BILL 832
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0002| 43rd legislature - STATE OF NEW MEXICO - first session, 1997
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0003| INTRODUCED BY
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0004| M. MICHAEL OLGUIN
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0005|
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0006|
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0007|
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0008| FOR THE HEALTH CARE REFORM COMMITTEE
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0009|
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0010| AN ACT
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0011| RELATING TO INSURANCE; ENACTING THE HEALTH INSURANCE
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0012| PORTABILITY ACT TO COMPLY WITH FEDERAL REQUIREMENTS; AMENDING
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0013| PROVISIONS OF THE NEW MEXICO INSURANCE CODE TO BE CONSISTENT
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0014| WITH FEDERAL REQUIREMENTS AND THAT ACT; PROVIDING FOR INCREASED
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0015| PORTABILITY, ACCESS AND RENEWABILITY OF HEALTH INSURANCE;
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0016| DECLARING AN EMERGENCY.
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0017|
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0018| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
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0019| Section 1. A new section of the New Mexico Insurance Code
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0020| is enacted to read:
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0021| "[NEW MATERIAL] SHORT TITLE.--Sections 1 through 17 of
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0022| this act may be cited as the "Health Insurance Portability
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0023| Act"."
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0024| Section 2. A new section of the New Mexico Insurance Code
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0025| is enacted to read:
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0001| "[NEW MATERIAL] DEFINITIONS.--As used in the Health
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0002| Insurance Portability Act:
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0003| A. "affiliation period" means a period that must
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0004| expire before health insurance coverage offered by a health
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0005| maintenance organization becomes effective;
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0006| B. "beneficiary" means that term as defined in
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0007| Section 3(8) of the Employee Retirement Income Security Act of
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0008| 1974;
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0009| C. "bona fide association" means an association
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0010| that:
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0011| (1) has been actively in existence for five or
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0012| more years;
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0013| (2) has been formed and maintained in good
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0014| faith for purpose other than obtaining insurance;
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0015| (3) does not condition membership in the
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0016| association on any health status related factor relating to an
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0017| individual, including an employee or a dependent of an
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0018| employee;
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0019| (4) makes health insurance coverage offered
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0020| through the association available to all members regardless of
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0021| any health status related factor relating to the members or
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0022| individuals eligible for coverage through a member; and
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0023| (5) does not offer health insurance coverage
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0024| to an individual through the association except in connection
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0025| with a member of the association;
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0001| D. "church plan" means that term as defined
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0002| pursuant to Section 3(33) of the Employee Retirement Income
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0003| Security Act of 1974;
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0004| E. "COBRA" means the federal Consolidated Omnibus
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0005| Budget Reconciliation Act of 1985;
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0006| F. "COBRA continuation provision" means:
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0007| (1) Section 4980 of the Internal Revenue Code
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0008| of 1986, except for Subsection (f)(1) of that section as it
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0009| relates to pediatric vaccines;
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0010| (2) Part 6 of Subtitle B of Title 1 of the
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0011| Employee Retirement Income Security Act of 1974 except for
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0012| Section 609 of that part; or
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0013| (3) Title 22 of the federal Health Insurance
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0014| Portability and Accountability Act of 1996;
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0015| G. "creditable coverage" means, with respect to an
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0016| individual, coverage of the individual pursuant to:
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0017| (1) a group health plan;
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0018| (2) health insurance coverage;
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0019| (3) Part A or Part B of Title 18 of the Social
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0020| Security Act;
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0021| (4) Title 19 of the Social Security Act except
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0022| coverage consisting solely of benefits pursuant to Section 1928
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0023| of that title;
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0024| (5) 10 USCA Chapter 55;
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0025| (6) a medical care program of the Indian
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0001| health service or of an Indian nation, tribe or pueblo;
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0002| (7) the Comprehensive Health Insurance Pool
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0003| Act;
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0004| (8) a health plan offered pursuant to 5 USCA
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0005| Chapter 89;
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0006| (9) a public health plan as defined in federal
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0007| regulations; or
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0008| (10) a health benefit plan offered pursuant to
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0009| Section 5(e) of the federal Peace Corps Act;
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0010| H. "eligible individual" means, with respect to a
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0011| health insurance issuer that offers health insurance coverage
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0012| to a small employer in connection with a group health plan in
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0013| the small group market, an individual whose eligibility shall
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0014| be determined:
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0015| (1) in accordance with the terms of the plan;
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0016| (2) as provided by the issuer under the rules
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0017| of the issuer that are uniformly applicable in the state to
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0018| small employers in the small group market; and
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0019| (3) in accordance with state laws governing
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0020| the issuer and the small group market;
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0021| I. "employee" means that term as defined in Section
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0022| 3(6) of the Employee Retirement Income Security Act of 1974;
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0023| J. "employer" means that term as defined in Section
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0024| 3(5) of the Employee Retirement Income Security Act of 1974 but
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0025| to be an "employer", a person must employ two or more
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0001| employees;
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0002| K. "employer contribution rule" means a requirement
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0003| relating to the minimum level or amount of employer
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0004| contribution toward the premium for enrollment of participants
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0005| and beneficiaries;
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0006| L. "enrollment date" means, with respect to an
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0007| individual covered under a group health plan or health
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0008| insurance coverage, the date of enrollment of the individual in
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0009| the plan or coverage or, if earlier, the first day of the
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0010| waiting period for enrollment;
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0011| M. "excepted benefits" means benefits furnished
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0012| pursuant to the following:
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0013| (1) coverage only accident or disability
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0014| income insurance;
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0015| (2) coverage issued as a supplement to
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0016| liability insurance;
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0017| (3) liability insurance;
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0018| (4) workers' compensation or similar
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0019| insurance;
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0020| (5) automobile medical payment insurance;
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0021| (6) credit-only insurance;
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0022| (7) coverage for on-site medical clinics;
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0023| (8) other similar insurance coverage specified
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0024| in regulations under which benefits for medical care are
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0025| secondary or incidental to other benefits;
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0001| (9) the following benefits if offered
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0002| separately:
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0003| (a) limited scope dental or vision
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0004| benefits;
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0005| (b) benefits for long-term care, nursing
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0006| home care, home health care, community-based care or any
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0007| combination of those benefits; and
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0008| (c) other similar limited benefits
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0009| specified in regulations;
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0010| (10) the following benefits, offered as
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0011| independent noncoordinated benefits:
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0012| (a) coverage only for a specified
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0013| disease or illness; or
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0014| (b) hospital indemnity or other fixed
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0015| indemnity insurance; and
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0016| (11) the following benefits if offered as a
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0017| separate insurance policy:
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0018| (a) medicare supplemental health
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0019| insurance as defined pursuant to Section 1882(g)(1) of the
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0020| Social Security Act; and
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0021| (b) coverage supplemental to the
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0022| coverage provided pursuant to Chapter 55 of Title 10 USCA and
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0023| similar supplemental coverage provided to coverage pursuant to
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0024| a group health plan;
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0025| N. "federal governmental plan" means a governmental
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0001| plan established or maintained for its employees by the United
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0002| States government or an instrumentality of that government;
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0003| O. "governmental plan" means that term as defined
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0004| in Section 3(32) of the Employee Retirement Income Security Act
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0005| of 1974 and includes a federal governmental plan;
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0006| P. "group health insurance coverage" means health
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0007| insurance coverage offered in connection with a group health
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0008| plan;
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0009| Q. "group health plan" means an employee welfare
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0010| benefit plan as defined in Section 3(1) of the Employee
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0011| Retirement Income Security Act of 1974 to the extent that the
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0012| plan provides medical care and includes items and services paid
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0013| for as medical care to employees or their dependents as defined
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0014| under the terms of the plan directly or through insurance,
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0015| reimbursement or otherwise;
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0016| R. "group participation rule" means a requirement
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0017| relating to the minimum number of participants or beneficiaries
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0018| that must be enrolled in relation to a specified percentage or
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0019| number of eligible individuals or employees of an employer;
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0020| S. "health insurance coverage" means benefits
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0021| consisting of medical care provided directly, through insurance
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0022| or reimbursement, or otherwise, and items, including items and
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0023| services paid for as medical care, pursuant to any hospital or
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0024| medical service policy or certificate, hospital or medical
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0025| service plan contract or health maintenance organization
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0001| contract offered by a health insurance issuer;
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0002| T. "health insurance issuer" means an insurance
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0003| company, insurance service or insurance organization, including
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0004| a health maintenance organization, that is licensed to engage
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0005| in the business of insurance in the state and that is subject
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0006| to state law that regulates insurance within the meaning of
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0007| Section 514(b)(2) of the Employee Retirement Income Security
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0008| Act of 1974, but "health insurance issuer" does not include a
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0009| group health plan;
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0010| U. "health maintenance organization" means:
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0011| (1) a federally qualified health maintenance
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0012| organization;
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0013| (2) an organization recognized pursuant to
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0014| state law as a health maintenance organization; or
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0015| (3) a similar organization regulated pursuant
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0016| to state law for solvency in the same manner and to the same
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0017| extent as a health maintenance organization defined in
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0018| Paragraph (1) or (2) of this subsection;
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0019| V. "health status related factor" means any of the
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0020| factors described in Section 2702(a)(1) of the federal Health
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0021| Insurance Portability and Accountability Act of 1996;
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0022| W. "individual health insurance coverage" means
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0023| health insurance coverage offered to an individual in the
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0024| individual market, but "individual health insurance coverage"
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0025| does not include short-term limited duration insurance;
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0001| X. "individual market" means the market for health
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0002| insurance coverage offered to individuals other than in
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0003| connection with a group health plan;
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0004| Y. "large employer" means, in connection with a
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0005| group health plan and with respect to a calendar year and a
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0006| plan year, an employer who employed an average of at least
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0007| fifty-one employees on business days during the preceding
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0008| calendar year and who employs at least two employees on the
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0009| first day of the plan year;
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0010| Z. "large group market" means the health insurance
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0011| market under which individuals obtain health insurance coverage
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0012| on behalf of themselves and their dependents through a group
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0013| health plan maintained by a large employer;
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0014| AA. "late enrollee" means, with respect to coverage
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0015| under a group health plan, a participant or beneficiary who
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0016| enrolls under the plan other than during:
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0017| (1) the first period in which the individual
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0018| is eligible to enroll under the plan; or
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0019| (2) a special enrollment period pursuant to
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0020| Sections 8 and 9 of the Health Insurance Portability Act;
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0021| BB. "medical care" means amounts paid for:
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0022| (1) the diagnosis, cure, mitigation, treatment
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0023| or prevention of disease or for the purpose of affecting any
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0024| structure or function of the body;
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0025| (2) transportation primarily for and essential
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0001| to medical care; and
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0002| (3) insurance covering medical care;
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0003| CC. "network plan" means health insurance coverage
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0004| of a health insurance issuer under which the financing and
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0005| delivery of medical care are provided through a defined set of
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0006| providers under contract with the issuer;
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0007| DD. "nonfederal governmental plan" means a
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0008| governmental plan that is not a federal governmental plan;
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0009| EE. "participant" means that term as defined in
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0010| Section 3(7) of the Employee Retirement Income Security Act of
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0011| 1974;
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0012| FF. "placed for adoption" means a child has been
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0013| placed with a person who assumes and retains a legal obligation
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0014| for total or partial support of the child in anticipation of
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0015| adoption of the child;
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0016| GG. "plan sponsor" means that term as defined in
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0017| Section 3(16)(B) of the Employee Retirement Income Security Act
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0018| of 1974;
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0019| HH. "preexisting condition exclusion" means a
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0020| limitation or exclusion of benefits relating to a condition
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0021| based on the fact that the condition was present before the
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0022| date of the coverage for the benefits whether or not any
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0023| medical advice, diagnosis, care or treatment was recommended
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0024| before that date, but genetic information is not included as a
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0025| preexisting condition for the purposes of limiting or excluding
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0001| benefits in the absence of a diagnosis of the condition related
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0002| to the genetic information;
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0003| II. "small employer" means, in connection with a
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0004| group health plan and with respect to a calendar year and a
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0005| plan year, an employer who employed an average of least two but
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0006| not more than fifty employees on business days during the
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0007| preceding calendar year and who employs at least two employees
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0008| on the first day of the plan year;
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0009| JJ. "small group market" means the health insurance
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0010| market under which individuals obtain health insurance coverage
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0011| through a group health plan maintained by a small employer;
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0012| KK. "state law" means laws, decisions, rules,
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0013| regulations or state action having the effect of law; and
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0014| LL. "waiting period" means, with respect to a group
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0015| health plan and an individual who is a potential participant or
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0016| beneficiary in the plan, the period that must pass with respect
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0017| to the individual before the individual is eligible to be
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0018| covered for benefits under the terms of the plan."
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0019| Section 3. A new section of the New Mexico Insurance Code
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0020| is enacted to read:
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0021| "[NEW MATERIAL] LIMITATION ON PREEXISTING CONDITION
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0022| EXCLUSION PERIOD--CREDITING FOR PERIODS OF PREVIOUS COVERAGE.--
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0023| Except as provided in Section 4 of the Health Insurance
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0024| Portability Act, a group health plan and a health insurance
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0025| issuer offering group health insurance coverage may, with
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0001| respect to a participant or beneficiary, impose a preexisting
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0002| condition exclusion only if:
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0003| A. the exclusion relates to a condition, physical
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0004| or mental, regardless of the cause of the condition, for which
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0005| medical advice, diagnosis, care or treatment was recommended or
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0006| received within the six-month period ending on the enrollment
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0007| date;
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0008| B. the exclusion extends for a period of not more
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0009| than twelve months, or eighteen months in the case of a late
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0010| enrollee, after the enrollment date; and
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0011| C. the period of the exclusion is reduced by the
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0012| aggregate of the periods of creditable coverage applicable to
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0013| the participant or beneficiary as of the enrollment date."
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0014| Section 4. A new section of the New Mexico Insurance Code
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0015| is enacted to read:
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0016| "[NEW MATERIAL] PROHIBITION OF EXCLUSIONS IN CERTAIN
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0017| CASES.--
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0018| A. A group health plan or a health insurer offering
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0019| group health insurance shall not impose a preexisting condition
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0020| exclusion:
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0021| (1) in the case of an individual who, as of
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0022| the last day of the thirty-day period beginning with the date
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0023| of birth, is covered under creditable coverage;
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0024| (2) that excludes a child who is adopted or
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0025| placed for adoption before his eighteenth birthday and who, as
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0001| of the last day of the thirty-day period beginning on and
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0002| following the date of the adoption or placement for adoption,
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0003| is covered under creditable coverage; or
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0004| (3) that relates to or includes pregnancy as a
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0005| preexisting condition.
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0006| B. The provisions of Paragraphs (1) and (2) of
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0007| Subsection A of this section do not apply to any individual
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0008| after the end of the first continuous sixty-three-day period
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0009| during which the individual was not covered under any
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0010| creditable coverage."
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0011| Section 5. A new section of the New Mexico Insurance Code
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0012| is enacted to read:
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0013| "[NEW MATERIAL] RULES FOR CREDITING PREVIOUS COVERAGE.-
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0014| -
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0015| A. A period of creditable coverage shall not be
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0016| counted with respect to enrollment of an individual under a
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0017| group health plan if, after the period and before the
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0018| enrollment date, there was a sixty-three-day continuous period
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0019| during which the individual was not covered under any
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0020| creditable coverage.
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0021| B. In determining the continuous period for the
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0022| purpose of Subsection A of this section, any period that an
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0023| individual is in a waiting period for any coverage under a
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0024| group health plan or for group health insurance coverage, or is
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0025| in an affiliation period, shall not be counted."
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0001| Section 6. A new section of the New Mexico Insurance Code
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0002| is enacted to read:
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0003| "[NEW MATERIAL] METHOD OF CREDITING COVERAGE--ELECTION-
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0004| -NOTICE OF ELECTION.--
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0005| A. Except as provided in Subsection B of this
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0006| section, for purposes of applying Subsection C of Section 3 of
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0007| the Health Insurance Portability Act a group health plan and a
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0008| health insurance issuer offering group health insurance
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0009| coverage shall count a period of creditable coverage without
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0010| regard to the specific benefits covered during the period.
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0011| B. A group health plan or a health insurance issuer
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0012| offering group health insurance coverage may elect to apply
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0013| Subsection C of Section 3 of the Health Insurance Portability
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0014| Act based on coverage of benefits within each of several
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0015| classes or categories of benefits specified in regulations
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0016| rather than as provided in Subsection A of this section. The
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0017| election shall be made uniformly for all participants and
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0018| beneficiaries. If the election is made, a group health plan or
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0019| an issuer shall count a period of creditable coverage with
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0020| respect to any class or category of benefits if any level of
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0021| benefits is covered within the class or category.
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0022| C. A group health plan making an election pursuant
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0023| to Subsection B of this section, whether or not health
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0024| insurance coverage is provided in connection with the plan,
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0025| shall:
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0001| (1) prominently state in disclosure statements
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0002| concerning the plan, and state to each enrollee at the time of
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0003| enrollment under the plan, that the plan has made the election;
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0004| and
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0005| (2) include in the statements made a
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0006| description of the effect of this election.
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0007| D. A health insurance issuer offering group health
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0008| insurance coverage in the small or large group market making an
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0009| election pursuant to Subsection B of this section shall:
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0010| (1) prominently state in disclosure statements
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0011| concerning the coverage, and state to each employer at the time
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0012| of the offer or sale of the coverage, that the issuer has made
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0013| the election; and
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0014| (2) include in the statements made a
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0015| description of the effect of this election."
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0016| Section 7. A new section of the New Mexico Insurance Code
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0017| is enacted to read:
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0018| "[NEW MATERIAL] CERTIFICATION AND DISCLOSURE OF
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0019| COVERAGE.--
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0020| A. Periods of creditable coverage with respect to
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0021| an individual shall be established through the certification
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0022| required by this section. A group health plan and a health
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0023| insurance issuer offering group health insurance coverage shall
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0024| provide the certification described in Subsection B of this
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0025| section:
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0001| (1) at the time an individual ceases to be
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0002| covered under the plan or otherwise becomes covered under a
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0003| COBRA continuation provision, to the extent practicable, at a
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0004| time consistent with notices required pursuant to any COBRA
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0005| continuation provision;
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0006| (2) in the case of an individual becoming
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0007| covered under a COBRA continuation provision, at the time the
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0008| individual ceases to be covered under that provision; and
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0009| (3) on the request on behalf of an individual
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0010| made not later than twenty-four months after the date of
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0011| cessation of the coverage described in Paragraph (1) or (2) of
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0012| this subsection, whichever is later.
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0013| B. The required certification is a written
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0014| certification of:
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0015| (1) the period of creditable coverage of the
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0016| individual under the plan and the coverage, if any, under the
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0017| COBRA continuation provision; and
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0018| (2) the waiting period, if any, and
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0019| affiliation period, if applicable, imposed with respect to the
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0020| individual for any coverage under the plan.
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0021| C. To the extent that medical care pursuant to a
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0022| group health plan consists of group health insurance coverage,
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0023| the plan satisfies the certification requirement of this
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0024| section if the health insurance issuer offering the coverage
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0025| provides for the certification pursuant to this section.
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0001| D. If a group health plan or health insurance
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0002| issuer that has made an election pursuant to Subsection B of
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0003| Section 6 of the Health Insurance Portability Act enrolls an
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0004| individual for coverage under the plan or insurance and the
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0005| individual provides a certification pursuant to this section,
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0006| the entity providing the individual that certification:
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0007| (1) shall upon request of the plan or issuer
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0008| promptly disclose to the requester information on coverage of
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0009| classes and categories of health benefits available under the
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0010| entity's plan or coverage; and
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0011| (2) may charge the requesting plan or issuer
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0012| the reasonable cost of disclosing the required information."
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0013| Section 8. A new section of the New Mexico Insurance Code
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0014| is enacted to read:
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0015| "[NEW MATERIAL] SPECIAL ENROLLMENT PERIODS FOR
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0016| INDIVIDUALS LOSING OTHER COVERAGE.--A group health plan and a
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0017| health insurance issuer offering group health insurance
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0018| coverage in connection with a group health plan shall permit an
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0019| employee who is eligible, but not enrolled, for coverage under
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0020| the terms of the plan, or a dependent of the employee if the
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0021| dependent is eligible but not enrolled for coverage, to enroll
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0022| for coverage under the terms of the plan if:
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0023| A. the employee or dependent was covered under a
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0024| group health plan or had health insurance coverage at the time
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0025| coverage was previously offered to the employee or dependent;
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0001| B. the employee stated in writing at the time
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0002| coverage was offered that coverage under a group health plan or
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0003| health insurance coverage was the reason for declining
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0004| enrollment, but only if the plan sponsor or issuer required
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0005| such a statement at the time and provided the employee with
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0006| notice of that requirement and the consequences of the
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0007| requirement at the time;
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0008| C. the employee's or dependent's coverage described
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0009| in Subsection A of this section:
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0010| (1) was under a COBRA continuation provision
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0011| and the coverage under that provision was exhausted; or
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0012| (2) was not under a COBRA continuation
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0013| provision and either the coverage was terminated as a result of
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0014| loss of eligibility for the coverage, including as a result of
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0015| legal separation, divorce, death, termination of employment or
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0016| reduction in the number of hours of employment, or employer
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0017| contributions toward the coverage were terminated; and
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0018| D. under the terms of the plan the employee
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0019| requested enrollment not later than thirty days after the date
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0020| of exhaustion of coverage described in Paragraph (1) of
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0021| Subsection C of this section or termination of coverage or
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0022| employer contribution described in Paragraph (2) of Subsection
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0023| C of this section."
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0024| Section 9. A new section of the New Mexico Insurance Code
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0025| is enacted to read:
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0001| "[NEW MATERIAL] SPECIAL ENROLLMENT PERIODS FOR
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0002| DEPENDENT BENEFICIARIES.--
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0003| A. A group health plan shall provide for a
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0004| dependent special enrollment period described in Subsection B
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0005| of this section during which a person or, if not otherwise
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0006| enrolled, the individual, may be enrolled under the plan as a
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0007| dependent of the individual, and in the case of the birth or
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0008| adoption of a child, the spouse of the individual may be
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0009| enrolled as a dependent of the individual if the spouse is
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0010| otherwise eligible for coverage, if:
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0011| (1) the plan makes coverage available to a
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0012| dependent of an individual;
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0013| (2) the individual is a participant under the
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0014| plan or has met any waiting period applicable to becoming a
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0015| participant and is eligible to be enrolled under the plan but
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0016| for a failure to enroll during a previous enrollment period;
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0017| and
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0018| (3) a person has become the dependent of the
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0019| individual through marriage, birth, adoption or placement for
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0020| adoption.
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0021| B. A dependent special enrollment period pursuant
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0022| to this subsection shall be for a period of not less than
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0023| thirty days and shall begin on the later of:
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0024| (1) the date dependent coverage is made
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0025| available; or
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0001| (2) the date of the marriage, birth, adoption
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0002| or placement for adoption described in Subsection A of this
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0003| section.
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0004| C. If an individual seeks to enroll a dependent
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0005| during the first thirty days of a dependent special enrollment
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0006| period, the coverage of the dependent becomes effective:
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0007| (1) in the case of marriage, not later than
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0008| the first day of the first month beginning after the date the
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0009| completed request for enrollment is received;
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0010| (2) in the case of a dependent's birth, as of
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0011| the date of the birth; or
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0012| (3) in the case of a dependent's adoption or
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0013| placement for adoption, the date of the adoption or placement."
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0014| Section 10. A new section of the New Mexico Insurance
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0015| Code is enacted to read:
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0016| "[NEW MATERIAL] USE OF AFFILIATION PERIOD BY HEALTH
|
0017| MAINTENANCE ORGANIZATIONS AS ALTERNATIVE TO PREEXISTING
|
0018| CONDITION EXCLUSION.--
|
0019| A. A health maintenance organization that offers
|
0020| health insurance coverage in connection with a group health
|
0021| plan and does not impose any preexisting condition exclusion
|
0022| allowed pursuant to Section 3 of the Health Insurance
|
0023| Portability Act with respect to any particular coverage option
|
0024| may impose an affiliation period for the coverage option if
|
0025| that period:
|
0001| (1) is applied uniformly without regard to any
|
0002| health status related factors; and
|
0003| (2) does not exceed two months, or three
|
0004| months in the case of a late enrollee.
|
0005| B. During an affiliation period, a health
|
0006| maintenance organization is not required to provide health care
|
0007| services or benefits to a participant or beneficiary, and it
|
0008| shall not charge a premium to a participant or beneficiary for
|
0009| any coverage.
|
0010| C. An affiliation period begins to run on the
|
0011| enrollment date and shall run concurrently with any waiting
|
0012| period under the plan.
|
0013| D. A health maintenance organization described in
|
0014| Subsection A of this section may use alternative methods
|
0015| different from those described in that subsection to address
|
0016| adverse selection as approved by the superintendent."
|
0017| Section 11. A new section of the New Mexico Insurance
|
0018| Code is enacted to read:
|
0019| "[NEW MATERIAL] PROHIBITING DISCRIMINATION BASED ON
|
0020| HEALTH STATUS AGAINST INDIVIDUAL PARTICIPANTS AND BENEFICIARIES
|
0021| IN ELIGIBILITY TO ENROLL.--
|
0022| A. Except as provided in Subsection B of this
|
0023| section, a group health plan and a health insurance issuer
|
0024| offering group health insurance coverage in connection with a
|
0025| group health plan shall not establish rules for eligibility or
|
0001| continued eligibility of any individual to enroll or continue
|
0002| to participate in a health plan based on any of the following
|
0003| health status related factors in relation to the individual or
|
0004| a dependent of the individual:
|
0005| (1) health status;
|
0006| (2) medical condition, including both physical
|
0007| and mental illnesses;
|
0008| (3) claims experience;
|
0009| (4) receipt of health care;
|
0010| (5) medical history;
|
0011| (6) genetic information;
|
0012| (7) evidence of insurability, including
|
0013| conditions arising out of acts of domestic violence; or
|
0014| (8) disability.
|
0015| B. To the extent consistent with the provisions of
|
0016| Section 3 of the Health Insurance Portability Act, the
|
0017| provisions of Subsection A of this section do not require a
|
0018| group health plan or group health insurance coverage to provide
|
0019| particular benefits other than those provided under the terms
|
0020| of the plan or coverage or to prevent the plan or coverage from
|
0021| establishing limitations or restrictions on the amount, level,
|
0022| extent or nature of the benefits or coverage for similarly
|
0023| situated individuals enrolled in the plan or coverage."
|
0024| Section 12. A new section of the New Mexico Insurance
|
0025| Code is enacted to read:
|
0001| "[NEW MATERIAL] PROHIBITING DISCRIMINATION BASED ON
|
0002| HEALTH STATUS AGAINST INDIVIDUAL PARTICIPANTS AND BENEFICIARIES
|
0003| IN PREMIUM CONTRIBUTIONS.--
|
0004| A. Except as provided in Subsection B of this
|
0005| section, a group health plan and a health insurance issuer
|
0006| offering group health insurance coverage in connection with a
|
0007| group health plan shall not require an individual as a
|
0008| condition to enroll or continue to participate in a health plan
|
0009| to pay a premium or contribution that is greater than the
|
0010| premium or contribution for a similarly situated individual
|
0011| enrolled in the plan on the basis of the health status related
|
0012| factors specified in Subsection A of Section 11 of the Health
|
0013| Insurance Portability Act in relation to the individual or an
|
0014| individual enrolled under the plan as a dependent of the
|
0015| individual.
|
0016| B. The provisions of Subsection A of this section
|
0017| do not restrict the amount that an employer may be charged for
|
0018| coverage under a group health plan and do not prevent a group
|
0019| health plan or a health insurance issuer offering group health
|
0020| insurance coverage from establishing premium discounts or
|
0021| rebates or modifying otherwise applicable copayments or
|
0022| deductibles in return for adherence to programs of health
|
0023| promotion and disease prevention."
|
0024| Section 13. A new section of the New Mexico Insurance
|
0025| Code is enacted to read:
|
0001| "[NEW MATERIAL] HEALTH INSURANCE ISSUERS--COVERAGE IN
|
0002| SMALL GROUP MARKET--EXCEPTIONS FOR NETWORK PLANS, INSUFFICIENT
|
0003| FINANCIAL CAPACITY AND BONA FIDE ASSOCIATIONS--EMPLOYER
|
0004| CONTRIBUTION RULES.--
|
0005| A. Except as provided in Subsections B through G of
|
0006| this section, a health insurance issuer that offers health
|
0007| insurance coverage in the small group market shall:
|
0008| (1) accept a small employer that applies for
|
0009| coverage;
|
0010| (2) accept for enrollment under the offered
|
0011| coverage an eligible individual who applies for enrollment
|
0012| during the period in which the individual first becomes
|
0013| eligible to enroll under the terms of the group health plan;
|
0014| and
|
0015| (3) not place a restriction on an eligible
|
0016| individual being a participant or a beneficiary that is
|
0017| inconsistent with Sections 11 and 12 of the of the Health
|
0018| Insurance Portability Act.
|
0019| B. A health insurance issuer that offers health
|
0020| insurance coverage in the small group market through a network
|
0021| plan may:
|
0022| (1) limit the employers that may apply for the
|
0023| coverage to those with eligible individuals who live, work or
|
0024| reside in the service area for the network plan; and
|
0025| (2) deny coverage to employers within the
|
0001| service area for the network plan if the issuer has
|
0002| demonstrated to the superintendent that it:
|
0003| (a) will not have the capacity to
|
0004| deliver services adequately to enrollees of any additional
|
0005| groups because of its obligations to existing group contract
|
0006| holders and enrollees; and
|
0007| (b) is applying this exception uniformly
|
0008| to all employers without regard to the claims experience of
|
0009| those employers, their employees and their dependents or any
|
0010| health status related factor relating to those employees and
|
0011| dependents.
|
0012| C. A health insurance issuer, upon denying
|
0013| insurance coverage in any service area pursuant to the
|
0014| provisions of Subsection B of this section, shall not offer
|
0015| coverage in the small group market within the service area for
|
0016| a period of one hundred eighty days after the date coverage is
|
0017| denied.
|
0018| D. A health insurance issuer may deny health
|
0019| insurance coverage in the small group market if the issuer has
|
0020| demonstrated to the superintendent that it:
|
0021| (1) does not have the financial reserves
|
0022| necessary to underwrite additional coverage; and
|
0023| (2) is applying this exception uniformly to
|
0024| all employers in the small group market in the state consistent
|
0025| with state law and without regard to the claims experience of
|
0001| those employers, their employees and their dependents or any
|
0002| health status related factor relating to those employees and
|
0003| dependents.
|
0004| E. A health insurance issuer upon denying health
|
0005| insurance coverage in connection with group health plans
|
0006| pursuant to Subsection D of this section shall not offer
|
0007| coverage in connection with group health plans in the small
|
0008| group market in the state for a period of one hundred eighty
|
0009| days after the date coverage is denied or until the issuer has
|
0010| demonstrated to the superintendent that the issuer has
|
0011| sufficient financial reserves to underwrite the additional
|
0012| coverage, whichever is later. The superintendent may provide
|
0013| for the application of this subsection on a service-area-
|
0014| specific basis.
|
0015| F. The requirement of Subsection A of this section
|
0016| does not apply to health insurance coverage offered by a health
|
0017| insurance issuer if the coverage is made available in the small
|
0018| group market only through one or more bona fide associations.
|
0019| G. Subsection A of this section does not preclude a
|
0020| health insurance issuer from establishing employer contribution
|
0021| rules or group participation rules for the offering of health
|
0022| insurance coverage in connection with a group health plan in
|
0023| the small group market."
|
0024| Section 14. A new section of the New Mexico Insurance
|
0025| Code is enacted to read:
|
0001| "[NEW MATERIAL] GUARANTEED RENEWABILITY OF COVERAGE FOR
|
0002| EMPLOYERS IN THE GROUP MARKET--REQUIREMENT AND EXCEPTIONS TO
|
0003| REQUIREMENT.--
|
0004| A. Except as provided in Subsections B through G of
|
0005| this section, a health insurance issuer that offers health
|
0006| insurance coverage in the small or large group market in
|
0007| connection with a group health plan shall renew or continue
|
0008| that coverage in force at the option of the plan sponsor of the
|
0009| plan.
|
0010| B. A health insurance issuer may nonrenew or
|
0011| discontinue health insurance coverage offered pursuant to
|
0012| Subsection A of this section if:
|
0013| (1) the plan sponsor has failed to pay
|
0014| premiums or contributions in accordance with the terms of the
|
0015| health insurance coverage or the issuer has not received timely
|
0016| premium payments;
|
0017| (2) the plan sponsor has performed an act or
|
0018| practice that constitutes fraud or made an intentional
|
0019| misrepresentation of a material fact under the terms of the
|
0020| coverage;
|
0021| (3) the plan sponsor has failed to comply with
|
0022| a material plan provision relating to employer contribution or
|
0023| group participation rules permitted pursuant to Subsection G of
|
0024| Section 13 of the Health Insurance Portability Act;
|
0025| (4) the issuer is ceasing to offer coverage in
|
0001| the market in accordance with Subsection C of this section;
|
0002| (5) in the case of a health insurance issuer
|
0003| that offers health insurance coverage in the market through a
|
0004| network plan, there is no longer any enrollee in connection
|
0005| with that plan who lives, resides or works in the service area
|
0006| of the issuer or the area for which the issuer is authorized to
|
0007| do business and, in the case of the small group market, the
|
0008| issuer would deny enrollment with respect to the network plan
|
0009| pursuant to Paragraph (1) of Subsection B of Section 13 of the
|
0010| Health Insurance Portability Act; or
|
0011| (6) in the case of health insurance coverage
|
0012| that is made available only through one or more bona fide
|
0013| associations, the membership of any employer in the association
|
0014| ceases, but only if the coverage is terminated pursuant to this
|
0015| paragraph uniformly without regard to any health status related
|
0016| factor relating to a covered individual.
|
0017| C. A health insurance issuer may discontinue
|
0018| offering a particular type of group health insurance coverage
|
0019| offered in the small or large group market only if:
|
0020| (1) the issuer provides notice to each plan
|
0021| sponsor provided coverage of this type in the market and to the
|
0022| participants and beneficiaries covered under the coverage of
|
0023| the discontinuation at least ninety days prior to the date of
|
0024| the discontinuation;
|
0025| (2) the issuer offers to a plan sponsor
|
0001| provided coverage of this type in the market the option to
|
0002| purchase all, or in the case of the large group market, any,
|
0003| other health insurance coverage currently being offered by the
|
0004| issuer to a group health plan in that market; and
|
0005| (3) in exercising the option to discontinue
|
0006| coverage of this type and in offering the option of coverage
|
0007| pursuant to Paragraph (2) of this subsection, the issuer acts
|
0008| uniformly without regard to the claims experience of those
|
0009| sponsors or any health status related factors relating to any
|
0010| participants or beneficiaries who may become eligible for that
|
0011| coverage.
|
0012| D. If a health insurance issuer elects to
|
0013| discontinue offering all health insurance coverage in the small
|
0014| group market or the large group market, coverage may be
|
0015| discontinued only if:
|
0016| (1) the issuer provides notice to the
|
0017| superintendent and to each plan sponsor and to participants and
|
0018| beneficiaries covered under the plan of the discontinuation at
|
0019| least one hundred eighty days prior to the date of
|
0020| discontinuation; and
|
0021| (2) all health insurance issued or delivered
|
0022| for issuance in the state in the market is discontinued and
|
0023| coverage is not renewed.
|
0024| E. After discontinuation pursuant to Subsection D
|
0025| of this section, the health insurance issuer shall not provide
|
0001| for the issuance of any health insurance coverage in the market
|
0002| involved during the five-year period beginning on the date of
|
0003| the discontinuation of the last health insurance coverage not
|
0004| renewed.
|
0005| F. At the time of coverage renewal pursuant to
|
0006| Subsection A of this section, a health insurance issuer may
|
0007| modify the coverage for a product offered to a group health
|
0008| plan:
|
0009| (1) in the large group market; or
|
0010| (2) in the small group market if, for coverage
|
0011| available in that market other than through a bona fide
|
0012| association, the modification is effective on a uniform basis
|
0013| among group health plans with that product.
|
0014| G. If health insurance coverage is made available
|
0015| by a health insurance issuer in the small or large group market
|
0016| to employers only through one or more associations, a reference
|
0017| to "plan sponsor" is deemed, with respect to coverage provided
|
0018| to an employer member of the association, to include a
|
0019| reference to that employer."
|
0020| Section 15. A new section of the New Mexico Insurance
|
0021| Code is enacted to read:
|
0022| "[NEW MATERIAL] DISCLOSURE OF INFORMATION BY HEALTH
|
0023| INSURANCE ISSUERS.--
|
0024| A. A health insurance issuer when offering health
|
0025| insurance coverage to a small employer shall:
|
0001| (1) make a reasonable disclosure to the small
|
0002| employer, as part of its solicitation and sales materials, of
|
0003| the availability of information described in Subsection B of
|
0004| this section; and
|
0005| (2) upon request of the small employer provide
|
0006| the information described.
|
0007| B. Except as provided in Subsection D of this
|
0008| section, a health insurance issuer shall provide information
|
0009| pursuant to Subsection A of this section concerning:
|
0010| (1) the provisions of coverage concerning the
|
0011| issuer's right to change premium rates and the factors that may
|
0012| affect changes in premium rates;
|
0013| (2) the provisions of coverage relating to
|
0014| renewability of coverage;
|
0015| (3) the provisions of the coverage relating to
|
0016| preexisting condition exclusions; and
|
0017| (4) the benefits and premiums available under
|
0018| all health insurance coverage for which the small employer is
|
0019| qualified.
|
0020| C. Information furnished pursuant to this section
|
0021| shall be provided to small employers in a manner determined to
|
0022| be understandable by the average small employer and shall be
|
0023| sufficient to reasonably inform small employers of their rights
|
0024| and obligations under the health insurance coverage.
|
0025| D. A health insurance issuer is not required by
|
0001| this section to disclose information that is proprietary and
|
0002| trade secret information."
|
0003| Section 16. A new section of the New Mexico Insurance
|
0004| Code is enacted to read:
|
0005| "[NEW MATERIAL] EXCLUSIONS, LIMITATIONS AND EXCEPTIONS
|
0006| FOR CERTAIN PLANS.--
|
0007| A. The requirements of Sections 3 through 15 of the
|
0008| Health Insurance Portability Act do not apply to any group
|
0009| health plan and health insurance coverage offered in connection
|
0010| with a group health plan if, on the first day of the plan year,
|
0011| the plan has less than two employees who are current employees.
|
0012| B. The requirements of Sections 3 through 15 of the
|
0013| Health Insurance Portability Act shall not apply with respect
|
0014| to a group health plan that is a nonfederal governmental plan
|
0015| if the plan sponsor makes an election under the provisions of
|
0016| this subsection in conformity with regulations of the federal
|
0017| secretary of health and human services. The period of an
|
0018| election for exclusion made pursuant to this subsection is for
|
0019| a single specified plan year or, in the case of a plan provided
|
0020| pursuant to a collective bargaining agreement, for the term of
|
0021| the agreement. The plan for which an election is made shall
|
0022| provide under the terms of the election for:
|
0023| (1) notice to enrollees on an annual basis and
|
0024| at the time of enrollment of the facts and consequences of the
|
0025| election; and
|
0001| (2) certification and disclosure of creditable
|
0002| coverage under the plan with respect to enrollees in accordance
|
0003| with Section 7 of the Health Insurance Portability Act.
|
0004| C. The requirements of Sections 3 through 15 of the
|
0005| Health Insurance Portability Act do not apply to a group health
|
0006| plan and group health insurance coverage offered in connection
|
0007| with a group health plan in relation to its provision of
|
0008| excepted benefits described in Paragraph (9) of Subsection M of
|
0009| Section 2 of the Health Insurance Portability Act if the
|
0010| benefits are:
|
0011| (1) provided under a separate policy,
|
0012| certificate or contract of insurance; or
|
0013| (2) otherwise not an integral part of the
|
0014| plan.
|
0015| D. The requirements of Sections 3 through 15 of the
|
0016| Health Insurance Portability Act do not apply to any group
|
0017| health plan and group health insurance coverage offered in
|
0018| connection with a group health plan in relation to its
|
0019| provision of excepted benefits described in Paragraph (10) of
|
0020| Subsection M of Section 2 of the Health Insurance Portability
|
0021| Act if:
|
0022| (1) the benefits are provided under a separate
|
0023| policy, certificate or contract of insurance;
|
0024| (2) there is no coordination between the
|
0025| provision of the benefits and any exclusion of benefits under
|
0001| any group health plan maintained by the same sponsor; and
|
0002| (3) the benefits are paid with respect to an
|
0003| event without regard to whether benefits are provided with
|
0004| respect to that event under any group health plan maintained by
|
0005| the same sponsor.
|
0006| E. The requirements of Sections 3 through 15 of the
|
0007| Health Insurance Portability Act do not apply to any group
|
0008| health plan and group health insurance coverage offered in
|
0009| connection with a group health plan in relation to its
|
0010| provision of excepted benefits described in Paragraph (11) of
|
0011| Subsection M of Section 2 of the Health Insurance Portability
|
0012| Act if the benefits are provided under a separate policy,
|
0013| certificate or contract of insurance."
|
0014| Section 17. A new section of the New Mexico Insurance
|
0015| Code is enacted to read:
|
0016| "[NEW MATERIAL] TREATMENT OF PARTNERSHIPS AND SELF-
|
0017| EMPLOYED INDIVIDUALS.--
|
0018| A. Any plan, fund or program that would not be an
|
0019| employee welfare benefit plan, except for the provisions of
|
0020| this section, that is established or maintained by a
|
0021| partnership, to the extent that the plan, fund or program
|
0022| provides medical care to current or former partners in the
|
0023| partnership or to their dependents directly or through
|
0024| insurance, reimbursement or otherwise, shall be treated as an
|
0025| employee welfare benefit plan that is a group health plan.
|
0001| B. As used in this section:
|
0002| (1) "employer" includes a partnership in
|
0003| relation to a partner; and
|
0004| (2) "participant" includes:
|
0005| (a) in connection with a group health
|
0006| plan maintained by a partnership, an individual who is a
|
0007| partner in relationship to the partnership; and
|
0008| (b) in connection with a group health
|
0009| plan maintained by a self-employed individual under which one
|
0010| or more employees are participants, the self-employed
|
0011| individual, if he or his beneficiaries are or may become
|
0012| eligible to receive a benefit under the plan."
|
0013| Section 18. Section 59A-18-13.1 NMSA 1978 (being Laws
|
0014| 1994, Chapter 75, Section 26) is amended to read:
|
0015| "59A-18-13.1. ADJUSTED COMMUNITY RATING.--
|
0016| A. [Until July 1, 1998] Every insurer, fraternal
|
0017| benefit society, health maintenance organization or nonprofit
|
0018| health care plan that provides primary health insurance or
|
0019| health care coverage insuring or covering major medical
|
0020| expenses shall, in determining the initial year's premium
|
0021| charged for an individual, use only the rating factors of age,
|
0022| gender, geographic area of the place of employment and smoking
|
0023| practices, except that for individual policies the rating
|
0024| factor of the individual's place of residence may be used
|
0025| instead of the geographic area of the individual's place of
|
0001| employment. In determining the initial and any subsequent
|
0002| year's rate, the difference in rates in any one age group that
|
0003| may be charged on the basis of a person's gender shall not
|
0004| exceed another person's rates in the age group by more than
|
0005| twenty percent of the lower rate, and no person's rate shall
|
0006| exceed the rate of any other person with similar family
|
0007| composition by more than two hundred fifty percent of the lower
|
0008| rate, except that the rates for children under the age of
|
0009| nineteen or children aged nineteen to twenty-five who are
|
0010| full-time students may be lower than the bottom rates in the
|
0011| two hundred fifty percent band. The rating factor restrictions
|
0012| shall not prohibit an insurer, society, organization or plan
|
0013| from offering rates that differ depending upon family
|
0014| composition.
|
0015| [B. Effective July 1, 1998, every insurer,
|
0016| fraternal benefit society, health maintenance organization or
|
0017| nonprofit health care plan that provides primary health
|
0018| insurance or health care coverage insuring or covering major
|
0019| medical expenses shall charge the same premium for the same
|
0020| coverage to each New Mexico resident, regardless of a person's
|
0021| individual circumstances for medical risk, job risk or gender.
|
0022| The only rating factor that may be used is whether a person is
|
0023| under or over the age of nineteen.
|
0024| C.] B. The superintendent shall adopt
|
0025| regulations to implement the provisions of this section."
|
0001| Section 19. Section 59A-18-16 NMSA 1978 (being Laws 1984,
|
0002| Chapter 127, Section 345.1, as amended) is amended to read:
|
0003| "59A-18-16. CONTINUATION OF COVERAGE AND CONVERSION
|
0004| RIGHTS--ACCIDENT AND HEALTH INSURANCE POLICIES--
|
0005| NOTICE. Subject to the provisions of the Health Insurance
|
0006| Portability Act:
|
0007| A. every accident and health insurance policy that
|
0008| provides hospital, surgical and medical expense benefits and
|
0009| that is delivered, issued for delivery or renewed in this state
|
0010| on or after January 1, 1985 shall provide:
|
0011| (1) if an individual policy, covered family
|
0012| members the right to continue such policy as the named insured
|
0013| or through a conversion policy upon the death of the named
|
0014| insured or upon the divorce, annulment or dissolution of
|
0015| marriage or legal separation of the spouse from the named
|
0016| insured; or
|
0017| (2) if a group policy:
|
0018| (a) each member or employee of the group
|
0019| insured the right to continue such coverage for a period of six
|
0020| months and thereafter through a conversion policy upon
|
0021| termination of membership or employment with the group insured;
|
0022| and
|
0023| (b) covered family members of an
|
0024| employee or member of the group insured the right to continue
|
0025| such coverage through a converted or separate policy upon the
|
0001| death of the member or employee of the group insured or upon
|
0002| the divorce, annulment or dissolution of marriage or legal
|
0003| separation of the spouse from the member or employee of the
|
0004| group insured.
|
0005| Where a continuation of coverage or conversion is made in
|
0006| the name of the spouse of the named insured or the spouse of
|
0007| the employee or member of the group insured, such coverage may,
|
0008| at the option of the spouse, include coverage for dependent
|
0009| children for whom the spouse has responsibility for care and
|
0010| support;
|
0011| B. the right to a continuation of coverage or
|
0012| conversion pursuant to this section shall not exist with
|
0013| respect to any member or employee of the group insured or any
|
0014| covered family member in the event the coverage terminates for
|
0015| nonpayment of premium, nonrenewal of the policy or the
|
0016| expiration of the term for which the policy is issued. With
|
0017| respect to any member or employee of the group insured or any
|
0018| covered family member who is eligible for medicare or any other
|
0019| similar federal or state health insurance program, the right to
|
0020| a continuation of coverage or conversion shall be limited to
|
0021| coverage under a medicare supplement insurance policy as
|
0022| defined by the rules and regulations adopted by the
|
0023| superintendent;
|
0024| C. coverage continued through the issuance of a
|
0025| converted or separate policy shall be provided at a reasonable,
|
0001| nondiscriminatory rate to the insured and shall consist of a
|
0002| form of coverage then being offered by the insurer as a
|
0003| conversion policy in the jurisdiction where the person
|
0004| exercising the conversion right resides that most nearly
|
0005| approximates the coverage of the policy from which conversion
|
0006| is exercised. Continued and converted coverages shall contain
|
0007| renewal provisions that are not less favorable to the insured
|
0008| than those contained in the policy from which the conversion is
|
0009| made, except that the person who exercises the right of
|
0010| conversion is entitled only to have included a right to
|
0011| coverage under a medicare supplement insurance policy, as
|
0012| defined by the rules and regulations adopted by the
|
0013| superintendent, after the attainment of the age of eligibility
|
0014| for medicare or any other similar federal or state health in-
|
0015|
|
0016| surance program;
|
0017| D. at the time of inception of coverage, the insurer
|
0018| shall furnish to each covered family member who is eighteen
|
0019| years of age or over and to each employee or member of the
|
0020| group insured a statement setting forth in summary form the
|
0021| continuation of coverage and conversion provisions of the
|
0022| policy;
|
0023| E. the insurer shall notify in writing each employee
|
0024| or member, upon that employee's or member's termination of
|
0025| employment or membership with the group insured, of the
|
0001| continuation and conversion provisions of the policy. The
|
0002| employer may give the written notice specified herein. The
|
0003| employer should notify the insurer of the employee's or
|
0004| member's change of status and last known address. Under no
|
0005| circumstances shall the employer have any civil liability under
|
0006| the conversion provisions of the Insurance Code;
|
0007| F. the eligible employee or member of the group
|
0008| insured or covered family member exercising the continuation or
|
0009| conversion right [must] shall notify the employer or
|
0010| insurer and make payment of the applicable premium within
|
0011| thirty days following the date of the notification given by the
|
0012| insurer pursuant to Subsection E of this section. There shall
|
0013| be no lapse of coverage during the period in which conversion
|
0014| is available;
|
0015| G. coverage shall be provided through continuation or
|
0016| conversion without additional evidence of insurability and
|
0017| shall not impose any preexisting condition, limitations or
|
0018| other contractual time limitations other than those remaining
|
0019| unexpired under the policy or contract from which continuation
|
0020| or conversion is exercised;
|
0021| H. benefits otherwise payable under a converted or
|
0022| separate policy may be reduced so they are not, during the
|
0023| first policy year of the converted or separate policy, in
|
0024| excess of those that would have been payable under the policy
|
0025| from which conversion is exercised. Benefits, if any,
|
0001| otherwise payable under a converted or separate policy are not
|
0002| payable for a loss claimed under the policy from which conver-
|
0003|
|
0004| sion is exercised; and
|
0005| I. any probationary or waiting period set forth in
|
0006| the converted or separate policy is deemed to commence on the
|
0007| effective date of the applicant's coverage under the original
|
0008| policy."
|
0009| Section 20. A new section of Chapter 59A, Article 23 NMSA
|
0010| 1978 is enacted to read:
|
0011| "[NEW MATERIAL] OUT-OF-STATE ASSOCIATIONS AND TRUSTS.--
|
0012| Unless the rate applicable to the certificate of coverage of an
|
0013| out-of-state association or trust complies with the
|
0014| requirements of Section 59A-18-13.1 or 59A-23C-5.1 NMSA 1978,
|
0015| the out-of-state association or trust shall not:
|
0016| A. advertise in the state as a benefit of membership
|
0017| for any group health insurance policy available to its members
|
0018| or beneficiaries;
|
0019| B. issue a certificate for delivery in New Mexico to
|
0020| any resident of the state; or
|
0021| C. solicit membership in the state on the basis of
|
0022| the existence or availability of such health insurance
|
0023| coverage."
|
0024| Section 21. Section 59A-23B-6 NMSA 1978 (being Laws 1991,
|
0025| Chapter 111, Section 6, as amended) is amended to read:
|
0001| "59A-23B-6. FORMS AND RATES--APPROVAL OF THE
|
0002| SUPERINTENDENT [OF INSURANCE]--ADJUSTED COMMUNITY RATING.--
|
0003| A. All policy or plan forms, including applications,
|
0004| enrollment forms, policies, plans, certificates, evidences of
|
0005| coverage, riders, amendments, endorsements and disclosure
|
0006| forms, shall be submitted to the department of insurance for
|
0007| approval prior to use.
|
0008| B. No policy or plan may be issued in the state
|
0009| unless the rates have first been filed with and approved by the
|
0010| superintendent [of insurance]. This subsection shall not
|
0011| apply to policies or plans subject to the Small Group Rate and
|
0012| Renewability Act.
|
0013| C. Until July 1, 1998, in determining the initial
|
0014| year's premium or rate charged for coverage under a policy or
|
0015| plan, the only rating factors that may be used are age, gender,
|
0016| geographic area of the place of employment and smoking
|
0017| practices. Until July 1, 1998, in determining the initial and
|
0018| any subsequent year's rate, the difference in rates in any one
|
0019| age group that may be charged on the basis of a person's gender
|
0020| shall not exceed another person's [rates] rate in the age
|
0021| group by more than twenty percent of the lower rate, and no
|
0022| person's rate shall exceed the rate of any other person with
|
0023| similar family composition by more than two hundred fifty
|
0024| percent of the lower rate, except that the rates for children
|
0025| under the age of nineteen or children aged nineteen to twenty-
|
0001| five who are full-time students may be lower than the bottom
|
0002| rates in the two hundred fifty percent band. The rating factor
|
0003| restrictions shall not prohibit an insurer, society,
|
0004| organization or plan from offering rates that differ depending
|
0005| upon family composition.
|
0006| D. Effective July 1, 1998, each policy or plan
|
0007| covered by the Minimum Healthcare Protection Act shall charge
|
0008| the same premium for the same coverage to each New Mexico
|
0009| resident, regardless of a person's individual circumstances for
|
0010| medical risk, job risk or gender. The only rating factor that
|
0011| may be used is whether a person is under or over the age of
|
0012| nineteen.
|
0013| E. The superintendent [of insurance] shall adopt
|
0014| regulations to implement the provisions of this section."
|
0015| Section 22. Section 59A-23C-3 NMSA 1978 (being Laws 1991,
|
0016| Chapter 153, Section 3, as amended) is amended to read:
|
0017| "59A-23C-3. DEFINITIONS.--As used in the Small Group Rate
|
0018| and Renewability Act:
|
0019| A. "actuarial certification" means a written
|
0020| statement by a member of the American academy of actuaries or
|
0021| another individual acceptable to the superintendent that a
|
0022| small employer carrier is in compliance with the provisions of
|
0023| Section 59A-23C-5 NMSA 1978, based upon the person's
|
0024| examination, including a review of the appropriate records and
|
0025| of the actuarial assumptions and methods [utilized] used by
|
0001| the carrier in establishing premium rates for applicable health
|
0002| benefit plans;
|
0003| B. "base premium rate" means, for each class of
|
0004| business as to a rating period, the lowest premium rate charged
|
0005| under a rating system for that class of business by the small
|
0006| employer carrier to small employers with similar case
|
0007| characteristics for health benefit plans with the same or
|
0008| similar coverage;
|
0009| C. "carrier" means any person who provides health
|
0010| insurance in this state. For the purposes of the Small Group
|
0011| Rate and Renewability Act, "carrier" or "insurer" includes a
|
0012| licensed insurance company, a licensed fraternal benefit
|
0013| society, a prepaid hospital or medical service plan, a health
|
0014| maintenance organization, a nonprofit health care organization,
|
0015| a multiple employer welfare arrangement or any other person
|
0016| providing a plan of health insurance subject to state insurance
|
0017| regulation;
|
0018| D. "case characteristics" means demographic or other
|
0019| relevant characteristics of a small employer, as determined by
|
0020| a small employer carrier, that are considered by the carrier in
|
0021| the determination of premium rates for the small employer, but
|
0022| "case characteristics" does not include claim experience,
|
0023| health status and duration of coverage since issue;
|
0024| E. "class of business" means all small employers as
|
0025| shown on the records of the small employer carrier. A separate
|
0001| class of business may be established by the small employer
|
0002| carrier on the basis that the applicable health benefit plans
|
0003| have been acquired from another small employer carrier as a
|
0004| distinct grouping of plans;
|
0005| F. "creditable coverage" means, with respect to an
|
0006| individual, coverage of the individual pursuant to:
|
0007| (1) a group health plan;
|
0008| (2) health insurance coverage;
|
0009| (3) Part A or Part B of Title 18 of the Social
|
0010| Security Act;
|
0011| (4) Title 19 of the Social Security Act except
|
0012| coverage consisting solely of benefits pursuant to Section 1928
|
0013| of that title;
|
0014| (5) 10 USCA Chapter 55;
|
0015| (6) a medical care program of the Indian health
|
0016| service or of an Indian nation, tribe or pueblo;
|
0017| (7) the Comprehensive Health Insurance Pool Act;
|
0018| (8) a health plan offered pursuant to 5 USCA
|
0019| Chapter 89;
|
0020| (9) a public health plan as defined in federal
|
0021| regulations; or
|
0022| (10) a health benefit plan offered pursuant to
|
0023| Section 5(e) of the federal Peace Corps Act;
|
0024| [F.] G. "department" means the department of
|
0025| insurance;
|
0001| H. "group health plan" means an employee welfare
|
0002| benefit plan as defined Section 3(1) of the Employee Retirement
|
0003| Income Security Act of 1974 to the extent that the plan
|
0004| provides medical care and including items and services paid for
|
0005| as medical care to employees or their dependents as defined
|
0006| under the terms of the plan directly or through insurance,
|
0007| reimbursement or otherwise;
|
0008| [G.] I. "health benefit plan" or "plan" means any
|
0009| hospital or medical expense incurred policy or certificate,
|
0010| hospital or medical service plan contract or health maintenance
|
0011| organization subscriber contract. "Health benefit plan" does
|
0012| not include accident-only, credit, dental or disability income
|
0013| insurance, medicare supplement coverage, coverage issued as a
|
0014| supplement to liability insurance, workers' compensation or
|
0015| similar insurance or automobile medical-payment insurance;
|
0016| [H.] J. "index rate" means, for each class of
|
0017| business for small employers with similar case characteristics,
|
0018| the arithmetic average of the applicable base premium rate and
|
0019| the corresponding highest premium rate;
|
0020| K. "late enrollee" means, with respect to coverage
|
0021| under a group health plan, a participant or beneficiary who
|
0022| enrolls under the plan other than during:
|
0023| (1) the first period in which the individual is
|
0024| eligible to enroll under the plan; or
|
0025| (2) a special enrollment period pursuant to
|
0001| Sections 8 and 9 of the Health Insurance Portability Act;
|
0002| [I.] L. "new business premium rate" means, for
|
0003| each class of business as to a rating period, the premium rate
|
0004| charged or offered by the small employer carrier to small
|
0005| employers with similar case characteristics for newly issued
|
0006| health benefit plans with the same or similar coverage;
|
0007| [J.] M. "rating period" means the calendar period
|
0008| for which premium rates established by a small employer carrier
|
0009| are assumed to be in effect, as determined by the small
|
0010| employer carrier;
|
0011| [K.] N. "small employer" means any person, firm,
|
0012| corporation, partnership or association actively engaged in
|
0013| business who, on at least fifty percent of its working days
|
0014| during either of the two preceding [year] years,
|
0015| employed no less than two and no more than fifty eligible
|
0016| employees; provided that:
|
0017| (1) in determining the number of eligible
|
0018| employees, the spouse or dependent of an employee may, at the
|
0019| employer's discretion, be counted as a separate employee;
|
0020| [and]
|
0021| (2) companies that are affiliated companies or that are
|
0022| eligible to file a combined tax return for purposes of state
|
0023| income taxation shall be considered one employer; and
|
0024| (3) in the case of an employer that was not in
|
0025| existence throughout a preceding calendar year, the
|
0001| determination of whether the employer is a small or large
|
0002| employer shall be based on the average number of employees that
|
0003| it is reasonably expected to employ on working days in the
|
0004| current calendar year;
|
0005| [L.] O. "small employer carrier" means any
|
0006| insurer that offers health benefit plans covering the employees
|
0007| of a small employer; and
|
0008| [M.] P. "superintendent" means the superintendent
|
0009| of insurance."
|
0010| Section 23. Section 59A-23C-5 NMSA 1978 (being Laws 1991,
|
0011| Chapter 153, Section 5, as amended) is amended to read:
|
0012| "59A-23C-5. RESTRICTIONS RELATING TO PREMIUM RATES.--
|
0013| A. Premium rates for health benefit plans subject to
|
0014| the Small Group Rate and Renewability Act shall be subject to
|
0015| the following provisions:
|
0016| (1) the index rate for a rating period for any
|
0017| class of business shall not exceed the index rate for any other
|
0018| class of business by more than twenty percent;
|
0019| (2) for a class of business, the premium rates
|
0020| charged during a rating period to small employers with similar
|
0021| case characteristics for the same or similar coverage, or the
|
0022| rates that could be charged to those employers under the rating
|
0023| system for that class of business, shall not vary from the
|
0024| index rate by more than [twenty] fifteen percent of the
|
0025| index rate;
|
0001| (3) the percentage increase in the premium rate
|
0002| charged to a small employer for a new rating period may not
|
0003| exceed the sum of the following:
|
0004| (a) the percentage change in the new
|
0005| business premium rate measured from the first day of the prior
|
0006| rating period to the first day of the new rating period. In
|
0007| the case of a class of business for which the small employer
|
0008| carrier is not issuing new policies, the carrier shall use the
|
0009| percentage change in the base premium rate;
|
0010| (b) an adjustment, not to exceed ten percent
|
0011| annually and adjusted pro rata for rating periods of less than
|
0012| one year due to the claim experience, health status or duration
|
0013| of coverage of the employees or dependents of the small
|
0014| employer as determined from the carrier's rate manual for the
|
0015| class of business; and
|
0016| (c) any adjustment due to change in coverage
|
0017| or change in the case characteristics of the small employer as
|
0018| determined from the carrier's rate manual for the class of
|
0019| business; and
|
0020| (4) in the case of health benefit plans issued
|
0021| prior to the effective date of the Small Group Rate and
|
0022| Renewability Act, a premium rate for a rating period may exceed
|
0023| the ranges described in Paragraph (1) or (2) of this subsection
|
0024| for a period of five years following the effective date of the
|
0025| Small Group Rate and Renewability Act. In that case, the
|
0001| percentage increase in the premium rate charged to a small
|
0002| employer in that class of business for a new rating period may
|
0003| not exceed the sum of the following:
|
0004| (a) the percentage change in the new
|
0005| business premium rate measured from the first day of the prior
|
0006| rating period to the first day of the new rating period. In
|
0007| the case of a class of business for which the small employer
|
0008| carrier is not issuing new policies, the carrier shall use the
|
0009| percentage change in the base premium rate; and
|
0010| (b) any adjustment due to change in coverage
|
0011| or change in the case characteristics of the small employer as
|
0012| determined from the carrier's rate manual for the class of
|
0013| business.
|
0014| B. Nothing in this section is intended to affect the
|
0015| use by a small employer carrier of legitimate rating factors
|
0016| other than claim experience, health status or duration of
|
0017| coverage in the determination of premium rates. Small employer
|
0018| carriers shall apply rating factors, including case
|
0019| characteristics, consistently with respect to all small
|
0020| employers in a class of business.
|
0021| C. A small employer carrier shall not involuntarily
|
0022| transfer a small employer into or out of a class of business.
|
0023| A small employer carrier shall not offer to transfer a small
|
0024| employer into or out of a class of business unless the offer
|
0025| is made to transfer all small employers in the class of
|
0001| business without regard to case characteristics, claim
|
0002| experience, health status or duration since issue.
|
0003| D. Prior to usage and [the effective date of the
|
0004| Small Group Rate and Renewability Act] June 14, 1991, each
|
0005| carrier shall file with the superintendent the rate manuals and
|
0006| any updates thereto for each class of business. A rate filing
|
0007| fee is payable under Subsection U of Section 59A-6-1 NMSA 1978
|
0008| for the filing of each update. The superintendent shall
|
0009| disapprove within sixty days of receipt of a complete filing or
|
0010| the filing is deemed approved. If the superintendent
|
0011| disapproves [any such] the form during the sixty-day review
|
0012| period, he shall give the carrier written notice of the
|
0013| disapproval stating the [ground thereof] reasons for
|
0014| disapproval. At any time, the superintendent, after a hearing
|
0015| [thereof], may disapprove a form or withdraw a previous
|
0016| approval. The superintendent's order [on such] after the
|
0017| hearing shall state the grounds for disapproval or withdrawal
|
0018| of a previous approval and the date not less than twenty days
|
0019| later when disapproval or withdrawal becomes effective."
|
0020| Section 24. Section 59A-23C-5.1 NMSA 1978 (being Laws
|
0021| 1994, Chapter 75, Section 33) is amended to read:
|
0022| "59A-23C-5.1. ADJUSTED COMMUNITY RATING.--
|
0023| A. Until July 1, 1998, a health benefit plan that is
|
0024| offered by a carrier to a small employer shall be offered
|
0025| without regard to the health status of any individual in the
|
0001| group, except as provided in the Small Group Rate and
|
0002| Renewability Act. The only rating factors that may be used to
|
0003| determine the initial year's premium charged a group, subject
|
0004| to the maximum rate variation provided in this section for all
|
0005| rating factors, are the group members':
|
0006| (1) [age] ages;
|
0007| (2) [gender] genders;
|
0008| (3) geographic [area] areas of the place of
|
0009| employment; or
|
0010| (4) smoking practices.
|
0011| B. Until July 1, 1998, in determining the initial and
|
0012| any subsequent year's rate, the difference in rates in any one
|
0013| age group that may be charged on the basis of a person's gender
|
0014| shall not exceed another person's [rates] rate in the age
|
0015| group by more than twenty percent of the lower rate, and no
|
0016| person's rate shall exceed the rate of any other person with
|
0017| similar family composition by more than two hundred fifty
|
0018| percent of the lower rate, except that the rates for children
|
0019| under the age of nineteen or children aged nineteen to twenty-
|
0020| five who are full-time students may be lower than the bottom
|
0021| rates in the two hundred fifty percent band. The rating factor
|
0022| restrictions shall not prohibit a carrier from offering rates
|
0023| that differ depending upon family composition.
|
0024| C. Effective July 1, 1998, a health benefit plan that
|
0025| is offered by a carrier to a small employer shall charge the
|
0001| same premium for the same coverage to each New Mexico resident,
|
0002| regardless of a person's individual circumstances for medical
|
0003| risk, job risk or gender. The only rating factor that may be
|
0004| used is whether a person is under or over the age of nineteen.
|
0005| D. The superintendent shall adopt regulations to
|
0006| implement the provisions of this section."
|
0007| Section 25. Section 59A-23C-7.1 NMSA 1978 (being Laws
|
0008| 1994, Chapter 75, Section 32) is amended to read:
|
0009| "59A-23C-7.1. PREEXISTING CONDITIONS--LIMITATIONS.--
|
0010| A. A health benefit plan that is offered by a carrier
|
0011| to a small employer may include a preexisting condition
|
0012| [restriction that excludes coverage for a condition for up to
|
0013| six months after the effective date of the plan, provided that
|
0014| within six months before the effective date of coverage:
|
0015| (1) medical advice or treatment for the
|
0016| condition was recommended by or received from a licensed health
|
0017| care provider; or
|
0018| (2) the condition manifested itself in a manner
|
0019| that would cause a reasonable person to seek diagnosis or
|
0020| treatment] exclusion only if:
|
0021| (1) the exclusion extends for a period of not
|
0022| more than twelve months, or eighteen months in the case of a
|
0023| late enrollee, after the enrollment date; and
|
0024| (2) the period of the exclusion is reduced by
|
0025| the aggregate of the periods of creditable coverage applicable
|
0001| to the participant or beneficiary as of the enrollment date.
|
0002| B. As used in this section, "preexisting condition
|
0003| exclusion" means a limitation or exclusion of benefits relating
|
0004| to a condition based on the fact that the condition was present
|
0005| before the date of enrollment for coverage for the benefits
|
0006| whether or not any medical advice, diagnosis, care or treatment
|
0007| was recommended or received before that date, but genetic
|
0008| information is not included as a preexisting condition for the
|
0009| purposes of limiting or excluding benefits in the absence of a
|
0010| diagnosis of the condition related to the genetic information.
|
0011| C. A carrier shall not impose a preexisting condition
|
0012| exclusion:
|
0013| (1) in the case of an individual who, as of the
|
0014| last day of the thirty-day period beginning with the date of
|
0015| birth, is covered under creditable coverage;
|
0016| (2) that excludes a child who is adopted or
|
0017| placed for adoption before his eighteenth birthday and who, as
|
0018| of the last day of the thirty-day period beginning on and
|
0019| following the date of the adoption or placement for adoption,
|
0020| is covered under creditable coverage; or
|
0021| (3) that relates to or includes pregnancy as a
|
0022| preexisting condition.
|
0023| D. The provisions of Paragraphs (1) and (2) of
|
0024| Subsection C of this section do not apply to any individual
|
0025| after the end of the first continuous sixty-three-day period
|
0001| during which the individual was not covered under any
|
0002| creditable coverage.
|
0003| [B.] E. The preexisting condition [restriction]
|
0004| exclusion authorized in this section shall be waived to the
|
0005| extent that similar conditions have been satisfied under a
|
0006| prior health benefit plan that was subject to the Small Group
|
0007| Rate and Renewability Act, provided the [application for]
|
0008| effective date of coverage under the new health benefit plan
|
0009| is made not later than [thirty-one] sixty-three days after
|
0010| the individual ceases to be a member of the group insured or
|
0011| the group ceases to be insured under the prior health benefit
|
0012| plan, whichever occurs first. If the conditions authorized in
|
0013| this section have been previously satisfied, coverage under the
|
0014| new health benefit plan shall be effective from the date on
|
0015| which the prior coverage terminated.
|
0016| [C.] F. Nothing in this section requires the use
|
0017| in a health benefit plan offered by a carrier of a preexisting
|
0018| condition [restriction] exclusion. Nothing in this section
|
0019| prohibits the use of a preexisting condition [restrictions]
|
0020| exclusion that [are] is less restrictive on small
|
0021| employers and insured persons than the [conditions]
|
0022| exclusion authorized in this section.
|
0023| [D.] G. The superintendent shall adopt
|
0024| regulations to implement the provisions of this section."
|
0025| Section 26. Section 59A-23D-1 NMSA 1978 (being Laws 1995,
|
0001| Chapter 93, Section 1) is amended to read:
|
0002| "59A-23D-1. SHORT TITLE. [Sections 1 through 7 of this
|
0003| act] Chapter 59A, Article 23D NMSA 1978 may be cited as the
|
0004| "Medical Care Savings Account Act"."
|
0005| Section 27. Section 59A-23D-2 NMSA 1978 (being Laws 1995,
|
0006| Chapter 93, Section 2) is amended to read:
|
0007| "59A-23D-2. DEFINITIONS.--As used in the Medical Care
|
0008| Savings Account Act:
|
0009| A. "account administrator" means any of the following
|
0010| that administers medical care savings accounts:
|
0011| (1) a national or state chartered bank, savings
|
0012| and loan association, savings bank or credit union;
|
0013| (2) a trust company authorized to act as a
|
0014| fiduciary in this state;
|
0015| (3) an insurance company or health maintenance
|
0016| organization authorized to do business in this state pursuant
|
0017| to the [New Mexico] Insurance Code; or
|
0018| [(4) an employer that has a self-insured health
|
0019| plan under the federal Employee Retirement Income Security Act
|
0020| of 1974;
|
0021| (5) a broker, agent or investment advisor;
|
0022| (6) a person who holds a certificate or
|
0023| registration as an insurance administrator or for whom the
|
0024| registration has been waived; or
|
0025| (7) an employer who participates in the medical
|
0001| care savings account program;]
|
0002| (4) a person approved by the federal health and
|
0003| human services secretary;
|
0004| B. "deductible" means the total covered medical
|
0005| expense [the] an employee or his dependents must pay prior
|
0006| to any payment by [the] a qualified higher deductible
|
0007| health plan for a calendar year;
|
0008| C. "department" means the department of insurance;
|
0009| D. "dependent" means:
|
0010| (1) a spouse;
|
0011| (2) an unmarried or unemancipated child of the
|
0012| employee who is a minor and who is:
|
0013| (a) a natural child;
|
0014| (b) a legally adopted child;
|
0015| (c) a stepchild living in the same household
|
0016| who is primarily dependent on the employee for maintenance and
|
0017| support;
|
0018| (d) a child for whom the employee is the
|
0019| legal guardian and who is primarily dependent on the employee
|
0020| for maintenance and support, as long as evidence of the
|
0021| guardianship is evidenced in a court order or decree; or
|
0022| (e) a foster child living in the same
|
0023| household, if the child is not otherwise provided with health
|
0024| care or health insurance coverage;
|
0025| (3) an unmarried child described in
|
0001| Subparagraphs (a) through (e) of Paragraph (2) of this
|
0002| subsection who is between the ages of eighteen and twenty-five
|
0003| and is a full-time student at an accredited educational
|
0004| institution; provided, "full-time student" means a student is
|
0005| enrolled in and taking twelve or more semester hours or
|
0006| equivalent contact hours in secondary, undergraduate or
|
0007| vocational school or nine or more semester hours or equivalent
|
0008| contact hours in graduate school; or
|
0009| (4) a child over the age of eighteen who is
|
0010| incapable of self-sustaining employment by reason of mental
|
0011| retardation or physical handicap and who is chiefly dependent
|
0012| on the employee for support and maintenance;
|
0013| E. "eligible individual" means an individual who
|
0014| with respect to any month:
|
0015| (1) is covered under a qualified higher
|
0016| deductible health plan as of the first day of that month;
|
0017| (2) is not, while covered under a qualified
|
0018| higher deductible health plan, covered under any health plan
|
0019| that:
|
0020| (a) is not a qualified higher deductible
|
0021| health plan; and
|
0022| (b) provides coverage for any benefit that
|
0023| is covered under the qualified higher deductible health plan;
|
0024| and
|
0025| (3) is covered by a qualified higher deductible
|
0001| health plan that is established and maintained by the employer
|
0002| of the individual or of the spouse of the individual when the
|
0003| employer is a small employer;
|
0004| [E.] F. "eligible medical expense" means an
|
0005| expense paid by the employee for medical care described in
|
0006| Section 213(d) of the Internal Revenue Code of 1986 that is
|
0007| deductible for federal income tax purposes to the extent that
|
0008| those amounts are not compensated for by insurance or
|
0009| otherwise;
|
0010| [F.] G. "employee" includes a self-employed
|
0011| individual;
|
0012| [G.] H. "employer" includes a self-employed
|
0013| individual;
|
0014| [H.] I. "medical care savings account" or
|
0015| "savings account" means an account established by an employer
|
0016| [to pay the eligible medical expenses of an employee and his
|
0017| dependents] in the United States exclusively for the purpose
|
0018| of paying the eligible medical expenses of the employee, but
|
0019| only if the written governing instrument creating the trust
|
0020| meets the following requirements:
|
0021| (1) except in the case of a rollover
|
0022| contribution, no contribution will be accepted:
|
0023| (a) unless it is in cash; or
|
0024| (b) to the extent the contribution, when
|
0025| added to previous contributions to the trust for the calendar
|
0001| year, exceeds seventy-five percent of the highest annual limit
|
0002| deductible permitted pursuant to the Medical Care Savings
|
0003| Account Act;
|
0004| (2) no part of the trust assets will be invested
|
0005| in life insurance contracts;
|
0006| (3) the assets of the trust will not be
|
0007| commingled with other property except in a common trust fund or
|
0008| common investment fund; and
|
0009| (4) the interest of an individual in the balance
|
0010| in his account is nonforfeitable;
|
0011| [I.] J. "program" means the medical care savings
|
0012| account program established by an employer for his employees;
|
0013| [and
|
0014| J.] K. "qualified higher deductible health plan"
|
0015| means a health coverage policy, certificate or contract that
|
0016| provides for payments for covered health care benefits that
|
0017| exceed the policy, certificate or contract deductible [and],
|
0018| that is purchased by an employer for the benefit of an employee
|
0019| and that has the following deductible provisions:
|
0020| (1) self-only coverage with an annual deductible
|
0021| of not less than one thousand five hundred dollars ($1,500) or
|
0022| more than two thousand two hundred fifty dollars ($2,250) and a
|
0023| maximum annual out-of-pocket expense requirement of three
|
0024| thousand dollars ($3,000), not including premiums;
|
0025| (2) family coverage with an annual deductible of
|
0001| not less than three thousand dollars ($3,000) or more than four
|
0002| thousand five hundred dollars ($4,500) and a maximum annual
|
0003| out-of-pocket expense requirement of five thousand five hundred
|
0004| dollars ($5,500), not including premiums; and
|
0005| (3) preventive care coverage may be provided
|
0006| within the policies without the preventive care being subjected
|
0007| to the qualified higher deductibles; and
|
0008| L. "small employer" means:
|
0009| (1) with respect to any calendar year, an
|
0010| employer that employed an average of fifty or fewer employees
|
0011| on business days during either of the two preceding calendar
|
0012| years, but a preceding calendar year may be taken into account
|
0013| only if the employer was in existence throughout that year and
|
0014| if not in existence throughout a preceding calendar year, the
|
0015| determination shall be based on the average number of employees
|
0016| reasonably expected to be employed on business days in the
|
0017| current calendar year; or
|
0018| (2) a growing employer that satisfies the
|
0019| conditions of Section 220C(4)(c) of the Internal Revenue Code
|
0020| of 1986."
|
0021| Section 28. Section 59A-23D-3 NMSA 1978 (being Laws 1995,
|
0022| Chapter 93, Section 3) is amended to read:
|
0023| "59A-23D-3. ACCOUNT ADMINISTRATOR--REGISTRATION WITH
|
0024| DEPARTMENT--DEPARTMENT POWERS AND DUTIES.--
|
0025| A. An account administrator shall register annually
|
0001| with the department and pay [a] an annual registration fee
|
0002| of twenty-five dollars ($25.00). The registration fee shall be
|
0003| deposited in the general fund. Registration as an account
|
0004| administrator does not affect the regulation of a bank, savings
|
0005| and loan association, credit union, trust company or insurance
|
0006| company as otherwise provided by law.
|
0007| B. An account administrator shall provide to the
|
0008| department annually a list of the employers for whom it
|
0009| provides account administration and the number of employees and
|
0010| dependents for whom it administers accounts. The information
|
0011| shall be provided in the form requested by the department. The
|
0012| department may request other information it deems appropriate
|
0013| from the account administrator; provided, however, that the
|
0014| department shall not request any information about an
|
0015| individual employee or dependent unless a complaint has been
|
0016| filed with the department by that employee or dependent and the
|
0017| information is required to investigate the complaint.
|
0018| C. The department may receive, investigate and settle
|
0019| complaints about medical care savings accounts and account
|
0020| administrators or it may refer complaints to other appropriate
|
0021| agencies.
|
0022| D. The department, beginning January 1, 1998, shall
|
0023| adjust annually the [maximum] deductible for qualified higher
|
0024| deductible health plans to reflect the [last known increase in
|
0025| the medical care component of the consumer price index
|
0001| published by the United States department of labor. For 1995,
|
0002| the maximum deductible shall not be less than one thousand
|
0003| dollars ($1,000) and not more than three thousand dollars
|
0004| ($3,000)
|
0005| E. The department may adjust annually the maximum
|
0006| employer contribution to reflect the last known increase in the
|
0007| medical care component of the consumer price index. For 1995,
|
0008| the employer's contribution shall not exceed three thousand
|
0009| dollars ($3,000)] adjustment allowed by the Internal Revenue
|
0010| Code of 1986 for medical savings accounts."
|
0011| Section 29. Section 59A-23D-5 NMSA 1978 (being Laws 1995,
|
0012| Chapter 93, Section 5) is amended to read:
|
0013| "59A-23D-5. ACCOUNT ADMINISTRATOR--EMPLOYER AND EMPLOYEE
|
0014| RESPONSIBILITIES.--
|
0015| A. [The] An employer, in conjunction with [the]
|
0016| an account administrator, shall provide a current written
|
0017| statement to employees that details how money in their medical
|
0018| care savings accounts is or will be invested and the rate of
|
0019| return employees may reasonably anticipate on the investment of
|
0020| the savings accounts. The account administrator shall file the
|
0021| statement with the department.
|
0022| B. Except as provided in Section [6 of this act]
|
0023| 59A-23D-6 NMSA 1978, money in [the] a savings account
|
0024| shall be used solely for the purpose of paying the eligible
|
0025| medical expenses of [the] an employee and his dependents.
|
0001| C. The account administrator shall reimburse the
|
0002| employee from the employee's medical care savings account for
|
0003| eligible medical expenses. When seeking reimbursement, the
|
0004| employee shall submit documentation of eligible medical
|
0005| expenses paid by the employee.
|
0006| D. If an employer makes contributions to a program on
|
0007| a periodic installment basis, the employer may advance to an
|
0008| employee, interest free, an amount necessary to cover eligible
|
0009| medical expenses incurred that exceed the amount in the
|
0010| employee's savings account if the employee agrees to repay the
|
0011| advance from future installments or when he ceases to be an
|
0012| employee of the employer or a participant in the program. Such
|
0013| advances shall be exempt from taxation under the Income Tax
|
0014| Act."
|
0015| Section 30. Section 59A-23D-6 NMSA 1978 (being Laws 1995,
|
0016| Chapter 93, Section 6) is amended to read:
|
0017| "59A-23D-6. WITHDRAWALS.--
|
0018| A. An employee may withdraw money without penalty
|
0019| from his medical care savings account for a purpose other than
|
0020| reimbursement of eligible medical expenses [when he reaches
|
0021| the age of fifty-nine and one-half] when the employee attains
|
0022| the age specified in Section 1811 of the Social Security Act.
|
0023| An employee may also withdraw money without penalty for payment
|
0024| of coverage for:
|
0025| (1) a health plan during any period of
|
0001| continuation coverage required under any federal law;
|
0002| (2) a qualified long-term care insurance
|
0003| contract as defined by Section 7702B(6) of the Internal Revenue
|
0004| Code of 1986; or
|
0005| (3) a health plan during a period in which the
|
0006| individual is receiving unemployment compensation under any
|
0007| federal or state law.
|
0008| B. Except as provided in Subsection A of this
|
0009| section, if an employee withdraws money from the employee's
|
0010| medical care savings account [on the last business day of the
|
0011| account administrator's business year for a purpose not set
|
0012| forth in Section 4 of the Medical Care Savings Account Act the
|
0013| money withdrawn shall be considered income to the individual,
|
0014| subject to taxation. The withdrawal does not subject the
|
0015| employee to a penalty or make interest earned on the account
|
0016| during the tax year taxable as income to the employee] that
|
0017| is not used exclusively to pay eligible medical expenses of the
|
0018| employee or a dependent, it shall be included in the gross
|
0019| income of the employee for taxation purposes.
|
0020| C. Except as provided in Subsection A of this
|
0021| section, if an employee withdraws money from the employee's
|
0022| medical care savings account for a purpose [not set forth in
|
0023| Section 4 of the Medical Care Savings Account Act at any time
|
0024| other than the last business day of the account administrator's
|
0025| business year] other than a rollover to a new account
|
0001| administrator:
|
0002| (1) the amount of the withdrawal shall be
|
0003| considered gross income to the [individual] employee and
|
0004| subject to taxation; and
|
0005| (2) the administrator shall [withdraw and]
|
0006| also consider as a withdrawal on behalf of the employee
|
0007| [pay] a penalty equal to [ten] fifteen percent of the
|
0008| amount of the withdrawal and
|
0009| [(3) all interest earned on the balance in the
|
0010| savings account during the tax year in which the withdrawal is
|
0011| made shall be considered income to the individual and subject
|
0012| to taxation] shall consider this as gross income to the
|
0013| employee for taxation purposes.
|
0014| D. If an individual is no longer employed by an
|
0015| employer that participates in a program or if an employee
|
0016| chooses to cease participating in the program, the individual
|
0017| or employee shall, within sixty days of his final day of
|
0018| employment or participation:
|
0019| (1) request, in writing, the [transfer]
|
0020| rollover of his savings account to a new account
|
0021| administrator;
|
0022| (2) request, in writing, that the former
|
0023| employer's account administrator continue to administer the
|
0024| savings account, including in the request an agreement to pay
|
0025| the cost, if any, of account administration on that savings
|
0001| account; or
|
0002| (3) withdraw the money from the savings account
|
0003| subject to the provisions of Subsection C of this section, if
|
0004| the withdrawal is not for the purpose of a rollover when within
|
0005| sixty days of the receipt of the funds they are placed with a
|
0006| new account administrator.
|
0007| E. No more than [thirty days after the expiration of
|
0008| the sixty-day period] sixty days after the date of
|
0009| notification by the employee pursuant to Subsection D of this
|
0010| section, the account administrator shall:
|
0011| (1) transfer the savings account to a new
|
0012| account administrator as requested;
|
0013| (2) agree, in writing, to continue to act as the
|
0014| account administrator for the savings account; or
|
0015| (3) mail a check to the individual or employee
|
0016| at his last known address for the amount in the account as of
|
0017| the day the check was issued [excluding the applicable
|
0018| withdrawal penalty. The penalty shall be paid to the human
|
0019| services department at the same time as the individual's or
|
0020| employee's check is issued].
|
0021| F. Upon the death of an employee, the account
|
0022| administrator shall distribute the principal and accumulated
|
0023| interest of the savings account to the estate of the employee."
|
0024| Section 31. Section 59A-23D-7 NMSA 1978 (being Laws 1995,
|
0025| Chapter 93, Section 7) is amended to read:
|
0001| "59A-23D-7. REPORT.--
|
0002| A. The superintendent [of insurance] shall report
|
0003| to the legislature on or before December 1, 1999 on the
|
0004| availability of health care coverage pursuant to the Medical
|
0005| Care Savings Account Act and the market share of programs in
|
0006| comparison with traditional employer-provided health insurance
|
0007| programs; the results of a survey of employer and employee
|
0008| satisfaction with programs; and the results of a loss ratio
|
0009| study relative to programs.
|
0010| B. The superintendent shall adopt and promulgate
|
0011| regulations for enforcing and administering the provisions of
|
0012| the Medical Care Savings Account Act."
|
0013| Section 32. Section 59A-54-3 NMSA 1978 (being Laws 1987,
|
0014| Chapter 154, Section 3, as amended) is amended to read:
|
0015| "59A-54-3. DEFINITIONS.--As used in the Comprehensive
|
0016| Health Insurance Pool Act:
|
0017| A. "board" means the board of directors of the pool;
|
0018| B. "health care facility" means any entity providing
|
0019| health care services that is licensed by the department of
|
0020| health;
|
0021| C. "health care services" means any services or
|
0022| products included in the furnishing to any individual of
|
0023| medical care or hospitalization or incidental to the furnishing
|
0024| of such care or hospitalization, as well as the furnishing to
|
0025| any person of any other services or products for the purpose of
|
0001| preventing, alleviating, curing or healing human illness or
|
0002| injury;
|
0003| D. "health insurance" means any hospital and medical
|
0004| expense-incurred policy, nonprofit health care service plan
|
0005| contract, health maintenance organization subscriber contract,
|
0006| short-term, accident, fixed indemnity, specified disease policy
|
0007| or disability income contracts and limited benefit or credit
|
0008| insurance, or as defined by Section 59A-7-3 NMSA 1978. [The
|
0009| term] "Health insurance" does not include insurance arising
|
0010| out of the Workers' Compensation Act or similar law, automobile
|
0011| medical payment insurance or insurance under which benefits are
|
0012| payable with or without regard to fault and which is required
|
0013| by law to be contained in any liability insurance policy;
|
0014| E. "health maintenance organization" means any person
|
0015| who provides, at a minimum, either directly or through
|
0016| contractual or other arrangements with others, basic health
|
0017| care services to enrollees on a fixed prepayment basis and who
|
0018| is responsible for the availability, accessibility and quality
|
0019| of the health care services provided or arranged, or as defined
|
0020| by Subsection [F] M of Section 59A-46-2 NMSA 1978;
|
0021| F. "health plan" means any arrangement by which
|
0022| persons, including dependents or spouses, covered or making
|
0023| application to be covered under the pool have access to
|
0024| hospital and medical benefits or reimbursement, including group
|
0025| or individual insurance or subscriber contract; coverage
|
0001| through health maintenance organizations, preferred provider
|
0002| organizations or other alternate delivery systems; coverage
|
0003| under prepayment, group practice or individual practice plans;
|
0004| coverage under uninsured arrangements of group or group-type
|
0005| contracts, including employer self-insured, cost-plus or other
|
0006| benefits methodologies not involving insurance or not subject
|
0007| to New Mexico premium taxes; coverage under group-type
|
0008| contracts [which] that are not available to the general
|
0009| public and can be obtained only because of connection with a
|
0010| particular organization or group; and coverage by medicare or
|
0011| other governmental benefits. [The term] "Health plan"
|
0012| includes coverage through health insurance;
|
0013| G. "insured" means an individual resident of this
|
0014| state who is eligible to receive benefits from any insurer or
|
0015| other health plan;
|
0016| H. "insurer" means an insurance company authorized to
|
0017| transact health insurance business in this state, a nonprofit
|
0018| health care plan, a health maintenance organization and self-
|
0019| insurers not subject to federal preemption. "Insurer" does not
|
0020| include an insurance company that is licensed under the Prepaid
|
0021| Dental Plan Law or a company that is solely engaged in the sale
|
0022| of dental insurance and is licensed not under that act, but
|
0023| under another provision of the Insurance Code;
|
0024| I. "medicare" means coverage under both Part A and B
|
0025| of Title XVIII of the Social Security Act, [42 USC 1395 et
|
0001| seq.] as amended;
|
0002| J. "pool" means the New Mexico comprehensive health
|
0003| insurance pool;
|
0004| K. "superintendent" means the superintendent of
|
0005| insurance; and
|
0006| L. "therapist" means a licensed physical,
|
0007| occupational, speech or respiratory therapist."
|
0008| Section 33. Section 59A-54-12 NMSA 1978 (being Laws 1987,
|
0009| Chapter 154, Section 12, as amended) is amended to read:
|
0010| "59A-54-12. ELIGIBILITY--POLICY PROVISIONS.--
|
0011| A. Except as provided in Subsection B of this
|
0012| section, a person is eligible for a pool policy only if on the
|
0013| effective date of coverage or renewal of coverage the person is
|
0014| a New Mexico resident, and:
|
0015| (1) is not eligible as an insured or covered
|
0016| dependent for any health plan that provides coverage for
|
0017| comprehensive major medical or comprehensive physician and
|
0018| hospital services;
|
0019| (2) is only eligible for a health plan that is
|
0020| offered at a rate higher than that available from the pool;
|
0021| (3) has been rejected for coverage for
|
0022| comprehensive major medical or comprehensive physician and
|
0023| hospital services; [or]
|
0024| (4) is only eligible for a health plan with a
|
0025| rider, waiver or restrictive provision for that particular
|
0001| individual based on a specific condition; or
|
0002| (5) has as of the date the individual seeks
|
0003| coverage from the pool an aggregate of eighteen or more months
|
0004| of creditable coverage, the most recent of which was under a
|
0005| group health plan, governmental plan or church plan as defined
|
0006| in Subsections Q, O and D, respectively, of Section 2 of the
|
0007| Health Insurance Portability Act, except for the purposes of
|
0008| aggregating creditable coverage a period of creditable coverage
|
0009| shall not be counted with respect to enrollment of an
|
0010| individual for coverage under the pool, if, after that period
|
0011| and before the enrollment date there was a sixty-three-day or
|
0012| longer period during all of which the individual was not
|
0013| covered under any creditable coverage.
|
0014| B. A person's eligibility for a policy issued under
|
0015| the Health Insurance Alliance Act shall not preclude a person
|
0016| from remaining on a pool policy; provided, a self-employed
|
0017| person who qualifies for an approved health plan under the
|
0018| Health Insurance Alliance Act by using a dependent as the
|
0019| second employee may choose a pool policy in lieu of the health
|
0020| plan under that act.
|
0021| [B.] C. Coverage under a pool policy is in excess
|
0022| of and shall not duplicate coverage under any other form of
|
0023| health insurance.
|
0024| [C.] D. A pool policy shall provide that coverage
|
0025| of a dependent unmarried person terminates when the person
|
0001| becomes nineteen years of age or, if the person is enrolled
|
0002| full time in an accredited educational institution, when he
|
0003| becomes twenty-five years of age. The policy shall also
|
0004| provide in substance that attainment of the limiting age does
|
0005| not operate to terminate coverage when the person is and
|
0006| continues to be:
|
0007| (1) incapable of self-sustaining employment by
|
0008| reason of [mental retardation] developmental disability or
|
0009| physical handicap; and
|
0010| (2) primarily dependent for support and
|
0011| maintenance upon the person in whose name the contract is
|
0012| issued.
|
0013| Proof of incapacity and dependency shall be furnished to
|
0014| the insurer within one hundred twenty days of attainment of the
|
0015| limiting age and subsequently as required by the insurer but
|
0016| not more frequently than annually after the two-year period
|
0017| following attainment of the limiting age.
|
0018| [D.] E. A pool policy that provides coverage for
|
0019| a family member of the person in whose name the contract is
|
0020| issued shall, as to the coverage of the family member or the
|
0021| individual in whose name the contract was issued, provide that
|
0022| the health insurance benefits applicable for children are
|
0023| payable with respect to a newly born child of the family member
|
0024| or the person in whose name the contract is issued from the
|
0025| moment of coverage of injury or illness, including the
|
0001| necessary care and treatment of medically diagnosed congenital
|
0002| defects and birth abnormalities. If payment of a specific
|
0003| premium is required to provide coverage for the child, the
|
0004| contract may require that notification of the birth of a child
|
0005| and payment of the required premium shall be furnished to the
|
0006| carrier within thirty-one days after the date of birth in order
|
0007| to have the coverage continued beyond the thirty-one day
|
0008| period.
|
0009| [E.] F. Except for a person eligible as provided
|
0010| in Paragraphs (5) of Subsection A of this section, a pool
|
0011| policy may contain provisions under which coverage is excluded
|
0012| during a six-month period following the effective date of
|
0013| coverage as to a given individual for pre-existing conditions,
|
0014| as long as either of the following exists:
|
0015| (1) the condition has manifested itself within a
|
0016| period of six months before the effective date of coverage in
|
0017| such a manner as would cause an ordinarily prudent person to
|
0018| seek diagnoses or treatment; or
|
0019| (2) medical advice or treatment was recommended
|
0020| or received within a period of six months before the effective
|
0021| date of coverage.
|
0022| [F.] G. The preexisting condition exclusions
|
0023| described in Subsection [E] F of this section shall be
|
0024| waived to the extent to which similar exclusions have been
|
0025| satisfied under any prior health insurance coverage [which]
|
0001| that was involuntarily terminated, if the application for
|
0002| pool coverage is made not later than thirty-one days following
|
0003| the involuntary termination. In that case, coverage in the
|
0004| pool shall be effective from the date on which the prior
|
0005| coverage was terminated. This subsection does not prohibit
|
0006| preexisting conditions coverage in a pool policy that is more
|
0007| favorable to the insured than that specified in this
|
0008| subsection.
|
0009| [G.] H. An individual is not eligible for
|
0010| coverage by the pool if:
|
0011| (1) he is, at the time of application, eligible
|
0012| for medicare or medicaid which would provide coverage for
|
0013| amounts in excess of limited policies such as dread disease,
|
0014| cancer policies or hospital indemnity policies;
|
0015| (2) he has terminated coverage by the pool
|
0016| within the past twelve months; [or]
|
0017| (3) he is an inmate of a public institution or
|
0018| is eligible for public programs for which medical care is
|
0019| provided;
|
0020| (4) he is eligible for coverage under a group
|
0021| health plan;
|
0022| (5) he has other health insurance coverage;
|
0023| (6) the most recent coverages within the
|
0024| coverage period described in Paragraph (5) of Subsection A of
|
0025| this section was terminated as a result of nonpayment of
|
0001| premium or fraud; or
|
0002| (7) he has been offered the option of
|
0003| continuation coverage under a federal COBRA continuation
|
0004| provision as defined in Subsection F of Section 2 of the Health
|
0005| Insurance Portability Act or under a similar state program, and
|
0006| he has elected the coverage and did not exhaust the
|
0007| continuation coverage under the provision or program.
|
0008| [H.] I. Any person whose health insurance
|
0009| coverage from a qualified state health policy with similar
|
0010| coverage is terminated because of nonresidency in another state
|
0011| may apply for coverage under the pool. If the coverage is
|
0012| applied for within thirty-one days after that termination and
|
0013| if premiums are paid for the entire coverage period, the
|
0014| effective date of the coverage shall be the date of termination
|
0015| of the previous coverage."
|
0016| Section 34. Section 59A-56-1 NMSA 1978 (being Laws 1994,
|
0017| Chapter 75, Section 1) is amended to read:
|
0018| "59A-56-1. SHORT TITLE. [Sections 1 through 25 of this
|
0019| act] Chapter 59A, Article 56 NMSA 1978 may be cited as the
|
0020| "Health Insurance Alliance Act"."
|
0021| Section 35. Section 59A-56-2 NMSA 1978 (being Laws 1994,
|
0022| Chapter 75, Section 2) is amended to read:
|
0023| "59A-56-2. PURPOSE.--The purpose of the Health Insurance
|
0024| Alliance Act is to provide increased access to voluntary health
|
0025| insurance coverage for small employer groups in New Mexico.
|
0001| [The initial purpose is to improve access to health insurance
|
0002| coverage for small employers on a voluntary basis.] An
|
0003| additional purpose of the Health Insurance Alliance Act is to
|
0004| provide for [the development of a plan for expanded health
|
0005| insurance coverage to include uninsured children, other
|
0006| employer groups and individuals] access to voluntary health
|
0007| insurance coverage for individuals in the individual market who
|
0008| have met eligibility criteria established by that act."
|
0009| Section 36. Section 59A-56-3 NMSA 1978 (being Laws 1994,
|
0010| Chapter 75, Section 3) is amended to read:
|
0011| "59A-56-3. DEFINITIONS.--As used in the Health Insurance
|
0012| Alliance Act:
|
0013| A. "alliance" means the New Mexico health insurance
|
0014| alliance;
|
0015| B. "approved health plan" means any arrangement for
|
0016| the provisions of health insurance offered through and
|
0017| approved by the alliance [by which insureds have access to
|
0018| health insurance];
|
0019| C. "board" means the board of directors of the
|
0020| alliance;
|
0021| D. "child" means a dependent unmarried individual
|
0022| who is less than nineteen years of age or an unmarried
|
0023| individual who is enrolled full time in an accredited
|
0024| educational institution until the individual becomes twenty-
|
0025| five years of age;
|
0001| E. "creditable coverage" means, with respect to an
|
0002| individual, coverage of the individual pursuant to:
|
0003| (1) a group health plan;
|
0004| (2) health insurance coverage;
|
0005| (3) Part A or Part B of Title 18 of the Social
|
0006| Security Act;
|
0007| (4) Title 19 of the Social Security Act except
|
0008| coverage consisting solely of benefits pursuant to Section 1928
|
0009| of that title;
|
0010| (5) 10 USCA Chapter 55;
|
0011| (6) a medical care program of the Indian health
|
0012| service or of an Indian nation, tribe or pueblo;
|
0013| (7) the Comprehensive Health Insurance Pool Act;
|
0014| (8) a health plan offered pursuant to 5 USCA
|
0015| Chapter 89;
|
0016| (9) a public health plan as defined in federal
|
0017| regulations; or
|
0018| (10) a health benefit plan offered pursuant to
|
0019| Section 5(e) of the federal Peace Corps Act;
|
0020| F. "department" means the department of insurance;
|
0021| [D.] G. "director" means an individual who serves
|
0022| on the board;
|
0023| [E.] H. "earned premiums" means premiums paid or
|
0024| due during [the] a calendar year for coverage under an
|
0025| approved health plan less any unearned premiums at the end of
|
0001| that calendar year plus any unearned premiums from the end of
|
0002| the [previous] immediately preceding calendar year;
|
0003| [F.] I. "eligible expenses" [are] means the
|
0004| allowable charges for a health care service [and items for
|
0005| which benefits are extended] covered under an approved
|
0006| health plan;
|
0007| J. "eligible individual":
|
0008| (1) means an individual:
|
0009| (a) who, as of the date of the individual's
|
0010| application for coverage under an approved health plan, has an
|
0011| aggregate of eighteen or more months of creditable coverage,
|
0012| the most recent of which was under a group health plan,
|
0013| governmental plan or church plan as those plans are defined in
|
0014| Subsections Q, O and D of Section 2 of the Health Insurance
|
0015| Portability Act, respectively, or health insurance offered in
|
0016| connection with any of those plans, but for the purposes of
|
0017| aggregating creditable coverage, a period of creditable
|
0018| coverage shall not be counted with respect to enrollment of an
|
0019| individual for coverage under an approved health plan, if,
|
0020| after that period and before the enrollment date there was a
|
0021| sixty-three-day or longer period during all of which the
|
0022| individual was not covered under any creditable coverage; or
|
0023| (b) entitled to continuation coverage
|
0024| pursuant to Section 59A-56-20 NMSA 1978; and
|
0025| (2) does not include an individual who:
|
0001| (a) has or is eligible for coverage under a
|
0002| group health plan;
|
0003| (b) is eligible for coverage under medicare
|
0004| or a state plan under Title 19 of the federal Social Security
|
0005| Act or any successor program;
|
0006| (c) has other health insurance coverage;
|
0007| (d) during the most recent coverage within
|
0008| the coverage period described in Subsection E of Section
|
0009| 59A-36-3 NMSA 1978 was terminated from coverage as a result of
|
0010| nonpayment of premium or fraud; or
|
0011| (e) has been offered the option of coverage
|
0012| under a COBRA continuation provision as that term is defined in
|
0013| Subsection F of Section 2 of the Health Insurance Portability
|
0014| Act, or under a similar state program, except for continuation
|
0015| coverage under Section 59A-56-20 NMSA 1978, and did not exhaust
|
0016| the coverage available under the offered program;
|
0017| K. "enrollment date" means, with respect to an
|
0018| individual covered under a group health plan or health
|
0019| insurance coverage, the date of enrollment of the individual in
|
0020| the plan or coverage or, if earlier, the first day of the
|
0021| waiting period for that enrollment;
|
0022| L. "gross earned premiums" means premiums paid or due
|
0023| during a calendar year for all health insurance written in the
|
0024| state less any unearned premiums at the end of that calendar
|
0025| year plus any unearned premiums from the end of the immediately
|
0001| preceding calendar year;
|
0002| M. "group health plan" means an employee welfare
|
0003| benefit plan to the extent the plan provides hospital, surgical
|
0004| or medical expenses benefits to employees or their dependents,
|
0005| as defined by the terms of the plan, directly through
|
0006| insurance, reimbursement or otherwise;
|
0007| [G.] N. "health care service" means a service or
|
0008| product furnished an individual [or incidental to the
|
0009| furnishing of the service or product] for the purpose of
|
0010| preventing, alleviating, curing or healing human illness or
|
0011| injury and includes services and products incidental to
|
0012| furnishing the described services or products;
|
0013| [H.] O. "health insurance" means "health"
|
0014| insurance as defined in Section 59A-7-3 NMSA 1978; any
|
0015| hospital and medical expense-incurred policy, including
|
0016| medicare supplement insurance; nonprofit health care
|
0017| [service] plan service contract; health maintenance
|
0018| organization subscriber contract; short-term, accident, fixed
|
0019| indemnity, specified disease policy, long-term care or
|
0020| disability income insurance contracts and limited health
|
0021| benefit or credit health insurance; coverage for health care
|
0022| services under uninsured arrangements of group or group-type
|
0023| contracts, including employer self-insured, cost-plus or other
|
0024| benefits methodologies not involving insurance or not subject
|
0025| to New Mexico premium taxes; coverage for health care
|
0001| services under group-type contracts that are not available to
|
0002| the general public and can be obtained only because of
|
0003| connection with a particular organization or group; coverage by
|
0004| medicare or other governmental [benefits; or "health
|
0005| insurance" as defined by Section 59A-7-3 NMSA 1978] programs
|
0006| providing health care services; but "health insurance" does
|
0007| not include insurance [arising out of] issued pursuant to
|
0008| provisions of the Workers' Compensation Act or similar law,
|
0009| automobile medical payment insurance or [insurance under]
|
0010| provisions by which benefits are payable with or without
|
0011| regard to fault [and] that [is] are required by law to be
|
0012| contained in any liability insurance policy;
|
0013| [I.] P. "health maintenance organization" means a
|
0014| health maintenance organization as defined by Subsection M of
|
0015| Section 59A-46-2 NMSA 1978;
|
0016| [J.] Q. "incurred claims" means claims paid
|
0017| during a calendar year plus claims incurred in the calendar
|
0018| year and paid prior to April 1 of the succeeding year, less
|
0019| claims incurred previous to the current calendar year and paid
|
0020| prior to April 1 of the current year;
|
0021| [K.] R. "insured" means a small employer or its
|
0022| employee and an individual covered by an approved health plan
|
0023| [or an individual], a former employee of a small employer
|
0024| who is covered by an approved health plan through conversion
|
0025| or an individual covered by an approved health plan that
|
0001| allows individual enrollment;
|
0002| [L.] S. "medicare" means coverage under both
|
0003| Parts A and B of Title 18 of the federal Social Security Act;
|
0004| [M.] T. "member" means [an insurance company
|
0005| authorized to transact health insurance business in this state,
|
0006| a nonprofit health care plan, a health maintenance organization
|
0007| or self-insurers not subject to federal preemption, but does
|
0008| not include an insurance company that is licensed under the
|
0009| Prepaid Dental Plan Law or a company that is solely engaged in
|
0010| the sale of dental insurance and is licensed under a provision
|
0011| of the Insurance Code] a member of the alliance;
|
0012| U. "nonprofit health care plan" means a "health care
|
0013| plan" as defined in Subsection K of Section 59A-47-3 NMSA 1978;
|
0014| V. "premiums" means the premiums received for
|
0015| coverage under an approved health plan during a calendar year;
|
0016| [N.] W. "small employer" means a person that is a
|
0017| resident of this state, has employees at least fifty percent of
|
0018| whom are residents of this state, is actively engaged in
|
0019| business and that on at least fifty percent of its working days
|
0020| during either of the two preceding calendar [year]
|
0021| years, employed no less than two and no more than fifty
|
0022| eligible employees; provided that:
|
0023| (1) in determining the number of eligible
|
0024| employees, the spouse or dependent of an employee may, at the
|
0025| employer's discretion, be counted as a separate employee;
|
0001| [and]
|
0002| (2) companies that are affiliated companies or
|
0003| that are eligible to file a combined tax return for purposes of
|
0004| state income taxation shall be considered one employer; and
|
0005| (3) in the case of an employer that was not in
|
0006| existence throughout a preceding calender year, the
|
0007| determination of whether the employer is a small or large
|
0008| employer shall be based on the average number of employees that
|
0009| it is reasonably expected to employ on working days in the
|
0010| current calender year;
|
0011| [O.] X. "superintendent" means the superintendent
|
0012| of insurance;
|
0013| Y. "total premiums" means the total premiums for
|
0014| business written in the state received during a calendar year;
|
0015| and
|
0016| Z. "unearned premiums" means the portion of a premium
|
0017| previously paid for which the coverage period is in the
|
0018| future."
|
0019| Section 37. Section 59A-56-4 NMSA 1978 (being Laws 1994,
|
0020| Chapter 75, Section 4) is amended to read:
|
0021| "59A-56-4. ALLIANCE CREATED--BOARD CREATED.--
|
0022| A. The "New Mexico health insurance alliance" is
|
0023| created as a nonprofit [independent] public corporation for
|
0024| the purpose of providing increased access to health insurance
|
0025| in the state. All insurance companies authorized to transact
|
0001| health insurance business in this state, nonprofit health care
|
0002| plans, health maintenance organizations and self-insurers not
|
0003| subject to federal preemption shall organize and be members of
|
0004| the alliance as a condition of their authority to offer health
|
0005| insurance in this state [The alliance shall not be considered
|
0006| a governmental agency for any purpose], except for an
|
0007| insurance company that is licensed under the Prepaid Dental
|
0008| Plan Law or a company that is solely engaged in the sale of
|
0009| dental insurance and is licensed under a provision of the
|
0010| Insurance Code.
|
0011| B. The [board of directors of the New Mexico health
|
0012| insurance] alliance [is created] shall be governed by a
|
0013| board of directors constituted pursuant to the provisions of
|
0014| this section. The board is a governmental entity for purposes
|
0015| of the Tort Claims Act, but neither the board nor the
|
0016| alliance shall [not] be considered a governmental entity for
|
0017| any other purpose.
|
0018| C. The superintendent shall, within sixty days after
|
0019| [the effective date of the Health Insurance Alliance Act]
|
0020| March 4, 1994, give notice to all members of the time and
|
0021| place for the initial organizational meeting of the alliance.
|
0022| Each member shall be entitled to one vote in person or by proxy
|
0023| at the organizational meeting.
|
0024| D. The alliance shall operate subject to the
|
0025| supervision and approval of the board. The board shall consist
|
0001| of:
|
0002| (1) five directors, [appointed] elected by
|
0003| the members, who shall be officers or employees of members and
|
0004| shall consist of one representative of a nonprofit health care
|
0005| plan, two representatives of health maintenance organizations
|
0006| and two representatives of other types of members;
|
0007| (2) five directors, appointed by the governor,
|
0008| who shall be officers, general partners or proprietors of
|
0009| small employers [and] who, after the term of the initial
|
0010| appointments, are covered by approved health plans;
|
0011| (3) four directors appointed by the governor,
|
0012| who shall be employees of small employers, and who, after the
|
0013| term of the initial appointments, are employees of small
|
0014| employers covered by approved health plans; and
|
0015| (4) the superintendent or his designee, [The
|
0016| superintendent] who shall be a nonvoting member, except when
|
0017| his vote is necessary to break a tie.
|
0018| E. The superintendent shall serve as [chair]
|
0019| chairman of the board unless he declines, in which event he
|
0020| shall appoint the [chair] chairman.
|
0021| F. The directors [appointed] elected by the
|
0022| members shall be [appointed] elected for initial terms of
|
0023| three years or less, staggered so that the term of at least one
|
0024| director [shall expire] expires on June 30 of each year.
|
0025| The directors appointed by the governor shall be appointed for
|
0001| initial terms of three years or less, staggered so that the
|
0002| term of at least one director [shall expire] expires on
|
0003| June 30 of each year. Following the initial terms, directors
|
0004| shall be elected or appointed for terms of three years. [If
|
0005| the members fail to make the initial appointments within sixty
|
0006| days following the first organizational meeting, the
|
0007| superintendent shall make those appointments.] A director
|
0008| whose term has expired shall continue to serve until his
|
0009| successor is elected or appointed and qualified.
|
0010| G. Whenever a vacancy on the board occurs, the
|
0011| electing or appointing authority of [that director] the
|
0012| position that is vacant shall fill the vacancy by electing
|
0013| or appointing an individual to serve the balance of the
|
0014| unexpired term; provided, when a vacancy occurs in one of the
|
0015| director's positions elected by the members, the superintendent
|
0016| is authorized to appoint a temporary replacement director until
|
0017| the next scheduled election of directors elected by the members
|
0018| is held. The individual elected or appointed to fill a
|
0019| vacancy shall meet the requirements for initial election or
|
0020| appointment to that position.
|
0021| H. Directors may be reimbursed by the alliance as
|
0022| provided in the Per Diem and Mileage Act for nonsalaried
|
0023| public officers, but shall receive no other compensation,
|
0024| perquisite or allowance from the alliance."
|
0025| Section 38. Section 59A-56-5 NMSA 1978 (being Laws 1994,
|
0001| Chapter 75, Section 5) is amended to read:
|
0002| "59A-56-5. PLAN OF OPERATION.--
|
0003| A. The board shall submit a plan of operation to the
|
0004| superintendent and any amendments to the plan necessary or
|
0005| suitable to assure the fair, reasonable and equitable
|
0006| administration of the alliance.
|
0007| B. The superintendent shall, after notice and
|
0008| hearing, approve the plan of operation if it is determined to
|
0009| assure the fair, reasonable and equitable administration of the
|
0010| alliance. The plan of operation shall become effective upon
|
0011| written approval of the superintendent consistent with the date
|
0012| on which health insurance coverage through the alliance
|
0013| pursuant to the provisions of the Health Insurance Alliance Act
|
0014| is made available. [If the board fails to submit a plan of
|
0015| operation within one hundred eighty days after the appointment
|
0016| of the board, the superintendent shall, after notice and
|
0017| hearing, adopt and promulgate a plan of operation.] A plan of
|
0018| operation adopted by the superintendent shall continue in force
|
0019| until modified by him or superseded by a subsequent plan of
|
0020| operation submitted by the board and approved by the
|
0021| superintendent.
|
0022| C. The plan of operation shall:
|
0023| (1) establish procedures for the handling and
|
0024| accounting of assets of the alliance;
|
0025| (2) establish regular times and places for
|
0001| meetings of the board;
|
0002| (3) establish procedures for records to be kept
|
0003| of all financial transactions and for annual fiscal reporting
|
0004| to the superintendent;
|
0005| (4) establish the amount of and the method for
|
0006| collecting assessments pursuant to Section [11 of the Health
|
0007| Insurance Alliance Act] 59A-56-11 NMSA 1978;
|
0008| (5) establish a program to publicize the
|
0009| existence of the alliance, the approved health plans, the
|
0010| eligibility requirements and procedures for enrollment in an
|
0011| approved health plan and to maintain public awareness of the
|
0012| alliance;
|
0013| (6) establish penalties for [noncollection]
|
0014| nonpayment of assessments [from] by members;
|
0015| (7) establish procedures for alternative dispute
|
0016| resolution of disputes between members and insureds; and
|
0017| (8) contain additional provisions necessary and
|
0018| proper for the execution of the powers and duties of the
|
0019| alliance."
|
0020| Section 39. Section 59A-56-6 NMSA 1978 (being Laws 1994,
|
0021| Chapter 75, Section 6) is amended to read:
|
0022| "59A-56-6. BOARD--POWERS AND DUTIES.--
|
0023| A. The board shall have the general powers and
|
0024| authority granted to insurance companies licensed to transact
|
0025| health insurance business under the laws of this state.
|
0001| B. The board:
|
0002| (1) may enter into contracts to carry out the
|
0003| provisions of the Health Insurance Alliance Act, including,
|
0004| with the approval of the superintendent, contracting with
|
0005| similar alliances of other states for the joint performance of
|
0006| common administrative functions or with persons or other
|
0007| organizations for the performance of administrative functions;
|
0008| (2) may sue and be sued;
|
0009| (3) may conduct periodic audits of the members
|
0010| to assure the general accuracy of the financial data submitted
|
0011| to the alliance;
|
0012| (4) shall establish maximum rate schedules,
|
0013| allowable rate adjustments, administrative allowances,
|
0014| reinsurance premiums and agent referral, [and] servicing
|
0015| fees [and any other actuarial functions appropriate to the
|
0016| operation of the alliance, but within the limits established]
|
0017| or commissions subject to applicable provisions in the
|
0018| Insurance Code. In determining the initial year's rate for
|
0019| health insurance, the only rating factors that may be used are
|
0020| age, gender, geographic area of the place of employment and
|
0021| smoking practices. In any year's rate, the difference in rates
|
0022| in any one age group that may be charged on the basis of a
|
0023| person's gender shall not exceed another person's rates in the
|
0024| age group by more than twenty percent of the lower rate, and no
|
0025| person's rate shall exceed the rate of any other person with
|
0001| similar family composition by more than two hundred fifty
|
0002| percent of the lower rate, except that the rates for children
|
0003| under the age of nineteen may be lower than the bottom rates in
|
0004| the two hundred fifty percent band. The rating factor
|
0005| restrictions shall not prohibit a member from offering rates
|
0006| that differ depending upon family composition;
|
0007| (5) may direct a member to issue policies or
|
0008| certificates of coverage of health insurance in accordance with
|
0009| the requirements of the Health Insurance Alliance Act;
|
0010| (6) shall establish procedures for alternative
|
0011| dispute resolution of disputes between members and insureds;
|
0012| (7) shall cause the alliance to have an annual
|
0013| audit of its operations by an independent certified public
|
0014| accountant;
|
0015| (8) shall conduct all board meetings as if it
|
0016| were [an agency] subject to the provisions of the Open
|
0017| Meetings Act;
|
0018| (9) shall draft one or more sample health
|
0019| insurance policies that are the prototype documents for the
|
0020| members;
|
0021| (10) shall determine the design criteria to be
|
0022| met for an approved health plan;
|
0023| (11) shall review each proposed approved health
|
0024| plan to determine if it meets the alliance designed criteria
|
0025| and, if it does meet the criteria, approve the plan; provided
|
0001| that the board shall not permit more than one approved health
|
0002| plan per member for each set of plan design criteria;
|
0003| (12) shall review annually each approved health
|
0004| plan to determine if it still qualifies as an approved health
|
0005| plan based on the alliance designed criteria and, if the plan
|
0006| is no longer approved, arrange for the transfer of the insureds
|
0007| covered under the formerly approved plan to an approved
|
0008| health plan;
|
0009| (13) may terminate an approved health plan not
|
0010| operating as required by the board;
|
0011| (14) shall terminate an approved health plan if
|
0012| timely claim payments are not made pursuant to the plan; and
|
0013| (15) shall engage in significant marketing
|
0014| activities, including a program of media advertising, to inform
|
0015| small employers and eligible individuals of the existence of
|
0016| the alliance, its purpose and the health insurance available or
|
0017| potentially available through the alliance.
|
0018| C. The alliance is subject to and responsible for
|
0019| examination by the superintendent. No later than March 1 of
|
0020| each year, the board shall submit to the superintendent an
|
0021| audited financial report for the preceding calendar year in a
|
0022| form approved by the superintendent."
|
0023| Section 40. Section 59A-56-8 NMSA 1978 (being Laws 1994,
|
0024| Chapter 75, Section 8) is amended to read:
|
0025| "59A-56-8. APPROVED HEALTH PLAN [OR SERVICE].--
|
0001| A. An approved health plan shall conform to the
|
0002| alliance's approved health plan design criteria. The board may
|
0003| allow more than one plan design for approved health plans. A
|
0004| member may provide one approved health plan for each plan
|
0005| design approved by the board.
|
0006| B. The board shall designate plan designs for
|
0007| approved health plans. The board may designate plan designs
|
0008| for an approved health plan that provides catastrophic coverage
|
0009| or other benefit plan designs.
|
0010| [B. The] C. Each approved health plan shall
|
0011| offer a premium that is no greater than [fifteen] ten
|
0012| percent over and no less than [fifteen] ten percent under
|
0013| the average of the standard rate index for plans with the same
|
0014| characteristics.
|
0015| D. Each approved health plan offered to an eligible
|
0016| individual shall offer a premium that is no more than twenty-
|
0017| five percent over and no less than twenty-five percent under
|
0018| the average of the standard risk rate index determined pursuant
|
0019| to Section 59A-56-23 NMSA 1978.
|
0020| [C.] E. Any member that [submits a bid for]
|
0021| provides or offers to [provide or renews] renew a group
|
0022| health insurance contract providing health insurance benefits
|
0023| to employees of the state, a county, a municipality or a school
|
0024| district for which public funds are contributed shall offer
|
0025| at least one approved health plan to small employers and
|
0001| eligible individuals; provided, however, if a member does not
|
0002| offer anywhere in the United States a plan that meets
|
0003| substantially the design criteria of an approved health plan,
|
0004| the member shall not be required to offer an approved health
|
0005| plan.
|
0006| F. If a plan design approved by the board is not
|
0007| offered by any member already offering an approved health plan,
|
0008| but a member offers a substantially similar plan design outside
|
0009| the alliance, the board may require the member to offer that
|
0010| plan design as an approved health plan through the alliance.
|
0011| G. A member required to offer, and offering, an
|
0012| approved health plan pursuant to the requirement of Subsection
|
0013| E of this section shall continue to offer that plan for five
|
0014| consecutive years after the date the member was last required
|
0015| to offer the plan. A member offering an approved health plan
|
0016| but not required to offer it pursuant to the cited subsection
|
0017| may withdraw the plan but shall continue to offer it for five
|
0018| consecutive years after the date notice of future withdrawal is
|
0019| given to the board unless:
|
0020| (1) the member substitutes another approved
|
0021| health plan for the plan withdrawn; or
|
0022| (2) the board allows the plan to be withdrawn
|
0023| because it imposes a serious hardship upon the member.
|
0024| H. No member shall be required to offer an approved
|
0025| health plan if the member notifies the superintendent in
|
0001| writing that it will no longer offer health insurance, life
|
0002| insurance or annuities in the state, except for renewal of
|
0003| existing contracts, provided that:
|
0004| (1) the member does not offer or provide health
|
0005| insurance, life insurance or annuities for a period of five
|
0006| years from the date of notification to the superintendent to
|
0007| any person in the state who is not covered by the member
|
0008| through a health insurance policy in effect on the date of the
|
0009| notification; and
|
0010| (2) with respect to health or life insurance
|
0011| policies or annuities in effect on the date of notification to
|
0012| the superintendent, the member continues to comply with all
|
0013| applicable laws and regulations governing the provision of
|
0014| insurance in this state, including the payment of applicable
|
0015| taxes, fees and assessments."
|
0016| Section 41. Section 59A-56-9 NMSA 1978 (being Laws 1994,
|
0017| Chapter 75, Section 9) is amended to read:
|
0018| "59A-56-9. REINSURANCE.--
|
0019| A. [Any] A member offering an approved health plan
|
0020| [to small employers] shall be reinsured for certain losses by
|
0021| the alliance. Within six months following the end of each
|
0022| calendar year in which the member offering the approved health
|
0023| plan paid more in incurred claims [than], plus the member's
|
0024| reinsurance premium pursuant to Subsection B of this section,
|
0025| than eighty-five percent of earned premiums received by the
|
0001| member [received in gross earned premiums] on all approved
|
0002| health plans issued by the member [combined], the member
|
0003| shall receive from the alliance the excess amount for the
|
0004| calendar year by which the incurred claims and reinsurance
|
0005| premium exceeded eighty-five percent of the [gross] earned
|
0006| premiums received by the alliance or its administrator.
|
0007| B. The alliance shall withhold from all premiums that
|
0008| it receives a reinsurance premium as established by the board:
|
0009| (1) for insured small employer groups, the
|
0010| reinsurance premium shall not exceed five percent of premiums
|
0011| paid by insured groups in [their] the first year of
|
0012| coverage and shall not exceed ten percent of [such] premiums
|
0013| for renewal years; and
|
0014| (2) for eligible individuals, the reinsurance
|
0015| premium shall not exceed ten percent of premiums paid by
|
0016| individuals in the first year of coverage or continuation
|
0017| coverage and shall not exceed fifteen percent of premiums paid
|
0018| by individuals for renewal years; in determining the
|
0019| reinsurance premium for a particular calendar year, the board
|
0020| shall set the reinsurance premium at a rate that will recover
|
0021| the total reinsurance loss for the preceding year over a
|
0022| reasonable number of years in accordance with sound actuarial
|
0023| principles."
|
0024| Section 42. Section 59A-56-10 NMSA 1978 (being Laws 1994,
|
0025| Chapter 75, Section 10) is amended to read:
|
0001| "59A-56-10. ADMINISTRATION.--The alliance shall deduct
|
0002| from premiums collected for approved health plans an
|
0003| administrative charge as set by the board. The administrative
|
0004| charge shall be determined before the beginning of each
|
0005| calendar year:
|
0006| A. for insured small employer groups, the maximum
|
0007| administrative charge the alliance may charge is ten percent of
|
0008| [gross] premiums [from a small employer] in the first year
|
0009| and five percent of [gross] premiums in renewal years; and
|
0010| B. for eligible individuals, the maximum
|
0011| administrative charge the alliance may charge in any year is
|
0012| ten percent of premiums."
|
0013| Section 43. Section 59A-56-11 NMSA 1978 (being Laws 1994,
|
0014| Chapter 75, Section 11) is amended to read:
|
0015| "59A-56-11. ASSESSMENTS.--
|
0016| A. After the completion of each calendar year, the
|
0017| alliance shall assess all its members for the [total] net
|
0018| reinsurance loss in the previous calendar year and for the net
|
0019| administrative loss that occurred in the previous calendar
|
0020| year, taking into account investment income for the period and
|
0021| other appropriate gains and losses using the following
|
0022| definitions:
|
0023| (1) net reinsurance losses shall be the
|
0024| [reinsurance incurred claims against the alliance for the
|
0025| previous calendar year reduced by the reinsurance earned]
|
0001| amount determined for the previous calendar year in accordance
|
0002| with Subsection A of Section 59A-56-9 NMSA 1978 for all members
|
0003| offering an approved health plan reduced by reinsurance
|
0004| premiums charged by the alliance in the previous calendar
|
0005| year. Net reinsurance losses shall be calculated separately
|
0006| for group and individual coverage. If the reinsurance premiums
|
0007| for either category of coverage exceed the amount calculated in
|
0008| accordance with Subsection A of Section 59A-56-9 NMSA 1978, the
|
0009| premiums shall be applied first to offset the net reinsurance
|
0010| losses incurred in the other category of coverage and second to
|
0011| offset administrative losses; and
|
0012| (2) net administrative losses shall be the
|
0013| administrative expenses incurred by the alliance in the
|
0014| previous calendar year and projected for the current calendar
|
0015| year less the sum of administrative allowances [earned]
|
0016| received by the alliance [and any legislative appropriation
|
0017| for the period], but, in the event of an administrative gain,
|
0018| net administrative losses for the purpose of assessments shall
|
0019| be considered zero, and the gain shall be carried forward to
|
0020| the administrative fund for the next calendar year as an
|
0021| additional allowance.
|
0022| B. The assessment for each member shall be determined
|
0023| by multiplying the total losses of the alliance's operation, as
|
0024| defined in Subsection A of this section, by a fraction, the
|
0025| numerator of which [equals] is an amount equal to that
|
0001| member's total [premium] premiums, or [its] the
|
0002| equivalent, exclusive of premiums received by the member for
|
0003| an approved health plan for health insurance written in the
|
0004| state during the preceding calendar year and the denominator of
|
0005| which equals the total premiums of all health insurance
|
0006| [premiums] written in the state during the preceding calendar
|
0007| year exclusive of premiums for approved health plans;
|
0008| provided that [premium income] total premiums shall not
|
0009| include payments by the secretary of human services pursuant to
|
0010| a contract issued under Section 1876 of the federal Social
|
0011| Security Act, [and shall not include premium income] total
|
0012| premiums exempted by the federal Employee Retirement Income
|
0013| Security Act of 1974 or [other] federal government
|
0014| programs.
|
0015| C. If assessments exceed actual reinsurance losses
|
0016| and administrative losses of the alliance, the excess shall be
|
0017| held at interest by the board to offset future losses.
|
0018| D. To enable the board to properly determine the net
|
0019| reinsurance amount and its responsibility for reinsurance to
|
0020| each member:
|
0021| (1) by April 15 of each year, each member
|
0022| offering an approved health plan shall submit a listing of all
|
0023| incurred claims [or health charges of each approved health
|
0024| plan for the previous year, including all claims or health
|
0025| charges incurred in the previous year and paid prior to April 1
|
0001| of the current year. From this amount shall be subtracted and
|
0002| identified by list all incurred claims or health charges of
|
0003| each approved health plan paid in the previous year's months of
|
0004| January, February and March incurred prior to] for the
|
0005| previous year; and
|
0006| (2) by April 15 of each year, each member shall
|
0007| submit a report that includes the total [amount of all]
|
0008| earned premiums received during the prior year less [any
|
0009| earned premium] the total earned premiums exempted by
|
0010| federal government programs.
|
0011| E. The alliance shall notify [members] each
|
0012| member of the amount of [the] its assessment due by May 15
|
0013| of each year. The assessment shall be paid by the member by
|
0014| June 15 of each year.
|
0015| F. The proportion of participation of each member in
|
0016| the alliance shall be determined annually by the board, based
|
0017| on annual statements filed by each member and other reports
|
0018| deemed necessary by the board. Any deficit incurred by the
|
0019| alliance shall be recouped by assessments apportioned among the
|
0020| members pursuant to the formula provided in Subsection B of
|
0021| this section; provided that the assessment paid for any member
|
0022| shall be allowed as a credit on the future premium tax return
|
0023| for that member, with the credit limited to fifty percent of
|
0024| the premium tax due the first year the assessment is imposed;
|
0025| forty percent the second year; and thirty percent the third and
|
0001| all subsequent years.
|
0002| G. The board may [abate or] defer, in whole or in
|
0003| part, the payment of an assessment of a member if, in the
|
0004| opinion of the board, after approval of the superintendent,
|
0005| payment of the assessment would endanger the ability of the
|
0006| member to fulfill its contractual obligations. In the event
|
0007| payment of an assessment against a member is [abated or]
|
0008| deferred, the amount [by which such assessment is abated or]
|
0009| deferred may be assessed against the other members in a manner
|
0010| consistent with the basis for assessments set forth in
|
0011| Subsection A of this section. [The member receiving the
|
0012| abatement or deferment shall remain liable to the alliance for
|
0013| the deficiency for four years, including interest at the
|
0014| prevailing rate as determined by regulation of the
|
0015| superintendent. The board may sue to recover the abatement or
|
0016| deferment, plus interest and costs.] The member receiving the
|
0017| deferment shall pay the assessment in full plus interest at the
|
0018| prevailing rate as determined by regulation of the
|
0019| superintendent within four years from the date payment is
|
0020| deferred. After four years but within five years of the date
|
0021| of the deferment, the board may sue to recover the amount of
|
0022| the deferred payment plus interest and costs. Board actions to
|
0023| recover deferred payments brought after five years of the date
|
0024| of deferment are barred. Any amount received shall be deducted
|
0025| from future assessments or reimbursed pro rata to the members
|
0001| paying the deferred assessment."
|
0002| Section 44. Section 59A-56-13 NMSA 1978 (being Laws 1994,
|
0003| Chapter 75, Section 13) is amended to read:
|
0004| "59A-56-13. ALLIANCE ADMINISTRATOR.--
|
0005| A. The board may select an alliance administrator
|
0006| through a competitive request for proposal process. The
|
0007| board shall evaluate proposals based on criteria established by
|
0008| the board that shall include:
|
0009| (1) proven ability to [handle accident and]
|
0010| administer health insurance programs;
|
0011| (2) an estimate of total charges for
|
0012| administering the alliance for the proposed contract period;
|
0013| and
|
0014| (3) ability to administer the alliance in a
|
0015| cost-efficient manner.
|
0016| B. The alliance administrator contract shall be for a
|
0017| period up to four years, subject to annual renegotiation of the
|
0018| fees and services, and shall provide for cancellation of the
|
0019| contract for cause, termination of the alliance by the
|
0020| legislature or the combining of the alliance with a
|
0021| governmental body.
|
0022| C. At least one year prior to the expiration of
|
0023| [each four-year period of service by the] an alliance
|
0024| administrator contract, the board [shall] may invite all
|
0025| interested parties, including the current administrator, to
|
0001| submit [bids] proposals to serve as alliance administrator
|
0002| for [up to] a succeeding [four-year] contract period.
|
0003| Selection of the administrator for a succeeding contract
|
0004| period shall be made at least six months prior to the
|
0005| expiration of the current contract.
|
0006| D. The alliance administrator shall:
|
0007| (1) take applications for an approved health
|
0008| plan from small employers or a referring agent;
|
0009| (2) establish a premium billing procedure for
|
0010| collection of premiums from insureds. Billings shall be made
|
0011| on a periodic basis, not less than monthly, as determined by
|
0012| the board;
|
0013| (3) pay the member that offers an approved
|
0014| health plan the net premium due after deduction of reinsurance
|
0015| and administrative allowances;
|
0016| (4) provide the member with any changes in the
|
0017| status of insureds;
|
0018| (5) perform all necessary functions to assure
|
0019| that each member is providing timely payment of benefits to
|
0020| individuals covered under an approved health plan, including:
|
0021| (a) making information available to insureds
|
0022| relating to the proper manner of submitting a claim for
|
0023| benefits to the member offering the approved health plan and
|
0024| distributing forms on which submissions shall be made; and
|
0025| (b) making information available on approved
|
0001| health plan benefits and rates to insureds;
|
0002| (6) submit regular reports to the board
|
0003| regarding the operation of the alliance, the frequency, content
|
0004| and form of which shall be determined by the board;
|
0005| (7) following the close of each fiscal year,
|
0006| determine [net written] premiums of members, the expense of
|
0007| administration and the paid and incurred [losses] health
|
0008| care service charges for the year and report this information
|
0009| to the board and the superintendent on a form prescribed by the
|
0010| superintendent; and
|
0011| (8) establish the premiums for reinsurance and
|
0012| the administrative charges, subject to approval of the board."
|
0013| Section 45. Section 59A-56-14 NMSA 1978 (being Laws 1994,
|
0014| Chapter 75, Section 14) is amended to read:
|
0015| "59A-56-14. ELIGIBILITY--GUARANTEED ISSUE--PLAN
|
0016| PROVISIONS.--
|
0017| A. A small employer is eligible for an approved
|
0018| health plan if on the effective date of coverage or renewal:
|
0019| (1) at least fifty percent of its employees not
|
0020| otherwise insured elect to be covered under the approved health
|
0021| plan; [and]
|
0022| (2) the small employer has not terminated
|
0023| coverage with an approved health plan within three years of the
|
0024| date of application for coverage except to change to another
|
0025| approved health plan; and
|
0001| (3) the small employer does not offer other
|
0002| general group health insurance coverage to its employees. For
|
0003| the purposes of this paragraph, general group health insurance
|
0004| coverage excludes coverage providing only a specific limited
|
0005| form of health insurance such as accident or disability income
|
0006| insurance coverage or a specific health care service such as
|
0007| dental care.
|
0008| B. An individual is eligible for an approved health
|
0009| plan if on the effective date of coverage or renewal he meets
|
0010| the definition of an eligible individual under Section 59A-56-3
|
0011| NMSA 1978.
|
0012| [B.] C. An approved health plan shall provide
|
0013| [that coverage of a dependent unmarried individual terminates
|
0014| when the individual becomes nineteen years of age or, if the
|
0015| individual is enrolled full time in an accredited educational
|
0016| institution, when the individual becomes twenty-five years of
|
0017| age] coverage for a child. The policy shall also provide in
|
0018| substance that attainment of the limiting age by an unmarried
|
0019| dependent individual does not operate to terminate coverage
|
0020| when the individual continues to be incapable of self-
|
0021| sustaining employment by reason of [mental retardation]
|
0022| developmental disability or physical handicap and the
|
0023| individual is primarily dependent for support and maintenance
|
0024| upon the employee. Proof of incapacity and dependency shall be
|
0025| furnished to the alliance and the member that offered the
|
0001| approved health plan within one hundred twenty days of
|
0002| attainment of the limiting age. The board may require
|
0003| subsequent proof annually after a two-year period following
|
0004| attainment of the limiting age.
|
0005| [C.] D. An approved health plan shall provide
|
0006| that the health insurance benefits applicable for eligible
|
0007| dependents are payable with respect to a newly born child of
|
0008| the family member or the individual in whose name the contract
|
0009| is issued from the moment of birth, including the necessary
|
0010| care and treatment of medically diagnosed congenital defects
|
0011| and birth abnormalities. If payment of a specific premium is
|
0012| required to provide coverage for the child, the contract may
|
0013| require that notification of the birth of a child and payment
|
0014| of the required premium shall be furnished to the member within
|
0015| thirty-one days after the date of birth in order to have the
|
0016| coverage from birth. An approved health plan shall provide
|
0017| that the health insurance benefits applicable for eligible
|
0018| dependents are payable for an adopted child in accordance with
|
0019| the provisions of Section 59A-22-34.1 NMSA 1978.
|
0020| [D.] E. Except as provided in Subsections [E and
|
0021| G] G, H and I of this section, an approved health plan
|
0022| offered to a small employer may contain [provisions under
|
0023| which coverage is excluded during a six-month period following
|
0024| the effective date of coverage of an individual for preexisting
|
0025| conditions, as long as either of the following exists:
|
0001| (1) the condition has manifested itself within a
|
0002| period of six months before the effective date of coverage in
|
0003| such a manner as would cause an ordinarily prudent person to
|
0004| seek diagnosis or treatment; or
|
0005| (2) medical advice or treatment was recommended
|
0006| or received within a period of six months before the effective
|
0007| date of coverage] a preexisting condition exclusion only if:
|
0008| (1) the exclusion extends for a period of not
|
0009| more than six months, after the enrollment date; and
|
0010| (2) the period of the exclusion is reduced by
|
0011| the aggregate of the periods of creditable coverage applicable
|
0012| to the participant or beneficiary as of the enrollment date.
|
0013| F. As used in this section, "preexisting condition
|
0014| exclusion" means a limitation or exclusion of benefits relating
|
0015| to a condition based on the fact that the condition was present
|
0016| before the date of enrollment for coverage for the benefits
|
0017| whether or not any medical advice, diagnosis, care or treatment
|
0018| was recommended or received before that date, but genetic
|
0019| information is not included as a preexisting condition for the
|
0020| purposes of limiting or excluding benefits in the absence of a
|
0021| diagnosis of the condition related to the genetic information.
|
0022| G. An insurer shall not impose a preexisting
|
0023| condition exclusion:
|
0024| (1) in the case of an individual who, as of the
|
0025| last day of the thirty-day period beginning with the date of
|
0001| birth, is covered under creditable coverage;
|
0002| (2) that excludes a child who is adopted or
|
0003| placed for adoption before his eighteenth birthday and who, as
|
0004| of the last day of the thirty-day period beginning on and
|
0005| following the date of the adoption or placement for adoption,
|
0006| is covered under creditable coverage; or
|
0007| (3) that relates to or includes pregnancy as a
|
0008| preexisting condition.
|
0009| H. The provisions of Paragraphs (1) and (2) of
|
0010| Subsection G of this section do not apply to any individual
|
0011| after the end of the first continuous sixty-three-day period
|
0012| during which the individual was not covered under any
|
0013| creditable coverage.
|
0014| [E.] I. The preexisting condition exclusions
|
0015| described in Subsection [D] E of this section shall be
|
0016| waived to the extent to which similar exclusions have been
|
0017| satisfied under any prior health insurance coverage if the
|
0018| [application] effective date of coverage for health
|
0019| insurance through the alliance is made not later than [thirty-
|
0020| one] sixty-three days following the termination of the prior
|
0021| coverage. In that case, coverage through the alliance shall be
|
0022| effective from the date on which the prior coverage was
|
0023| terminated. This subsection does not prohibit preexisting
|
0024| conditions coverage in an approved health plan that is more
|
0025| favorable to the [insured] covered individual than that
|
0001| specified in this subsection.
|
0002| J. An approved health plan issued to an eligible
|
0003| individual shall not contain any preexisting condition
|
0004| exclusion.
|
0005| [F.] K. An individual is not eligible for
|
0006| coverage by the alliance under an approved health plan issued
|
0007| to a small employer if he:
|
0008| (1) [he] is [at the time of application]
|
0009| eligible for medicare; provided, however, if an individual has
|
0010| health insurance coverage from an employer whose group includes
|
0011| twenty or more individuals, an individual eligible for medicare
|
0012| who continues to be employed may choose to be covered through
|
0013| an approved health plan;
|
0014| (2) [he] has voluntarily terminated health
|
0015| insurance issued through the alliance within the past twelve
|
0016| months unless it was due to a change in employment; or
|
0017| (3) [he] is an inmate of a public institution
|
0018| [or is eligible for public programs, other than state-funded
|
0019| programs, for which medical care is provided].
|
0020| [G.] L. The alliance shall provide for an open
|
0021| enrollment period of sixty days from the initial offering of an
|
0022| approved health plan. Individuals enrolled during the open
|
0023| enrollment period shall not be subject to the preexisting
|
0024| conditions limitation.
|
0025| M. If an insured covered by an approved health plan
|
0001| switches to another approved health plan that provides
|
0002| increased or additional benefits such as lower deductible or
|
0003| co-payment requirements, the member offering the approved
|
0004| health plan with increased or additional benefits may require
|
0005| the six-month period for preexisting conditions provided in
|
0006| Subsection E of this section to be satisfied prior to receipt
|
0007| of the additional benefits."
|
0008| Section 46. Section 59A-56-17 NMSA 1978 (being Laws 1994,
|
0009| Chapter 75, Section 17) is amended to read:
|
0010| "59A-56-17. BENEFITS.--
|
0011| A. An approved health plan [issued through the
|
0012| alliance] shall pay for [or provide] medically necessary
|
0013| eligible expenses that exceed the deductible, co-payment and
|
0014| co-insurance amounts applicable under the provisions of Section
|
0015| [18 of the Health Insurance Alliance Act] 59A-56-18 NMSA
|
0016| 1978 and are not otherwise limited or excluded. The Health
|
0017| Insurance Alliance Act does not prohibit the board from
|
0018| approving additional types of health plan designs with similar
|
0019| cost-benefit structures or other types of health plan
|
0020| designs. An approved health plan for small employers shall,
|
0021| at a minimum, reflect the levels of health insurance coverage
|
0022| generally available in New Mexico for small employer group
|
0023| policies, but an approved health plan for small employers may
|
0024| also offer health plan designs that are not generally available
|
0025| in New Mexico for small employer group policies.
|
0001| B. The board may design and require an approved
|
0002| health plan to contain cost-containment measures and
|
0003| requirements, including managed care, pre-admission
|
0004| certification and concurrent inpatient review and the use of
|
0005| fee schedules for health care providers, including the
|
0006| diagnosis-related grouping system and the resource-based
|
0007| relative value system."
|
0008| Section 47. Section 59A-56-18 NMSA 1978 (being Laws 1994,
|
0009| Chapter 75, Section 18) is amended to read:
|
0010| "59A-56-18. DEDUCTIBLES--CO-INSURANCE--MAXIMUM OUT-OF-
|
0011| POCKET PAYMENTS.--
|
0012| A. Subject to the limitations provided in Subsection
|
0013| C of this section, an approved health plan offered through the
|
0014| alliance may impose a deductible on a per-person calendar year
|
0015| basis. [A deductible plan of five hundred dollars ($500) shall
|
0016| initially be offered.] An approved health plan offered by a
|
0017| health maintenance organization [plans] shall provide
|
0018| equivalent cost-benefit structures. The board may authorize
|
0019| deductibles in other amounts and equivalent cost-benefit
|
0020| structures. [The deductible shall be applied to the first five
|
0021| hundred dollars ($500) or any other amount determined as
|
0022| deductible by the board of eligible expenses incurred by the
|
0023| covered individual.]
|
0024| B. Subject to the limitations provided in Subsection
|
0025| C of this section, a mandatory co-insurance requirement
|
0001| [shall] for an approved health plan may be imposed [at an
|
0002| average not to exceed thirty percent] as a percentage of
|
0003| eligible expenses in excess of [the mandatory] a
|
0004| deductible. Health maintenance organizations shall impose
|
0005| equivalent cost-benefit structures.
|
0006| C. The maximum aggregate out-of-pocket payments for
|
0007| eligible expenses [or health care services] by the covered
|
0008| individual shall be determined by the board."
|
0009| Section 48. Section 59A-56-19 NMSA 1978 (being Laws 1994,
|
0010| Chapter 75, Section 19) is amended to read:
|
0011| "59A-56-19. DEPENDENT FAMILY MEMBER REQUIRED COVERAGE--
|
0012| SMALL EMPLOYER RESPONSIBILITY.--
|
0013| A. A small employer [may] shall collect or make a
|
0014| payroll deduction from the compensation of an employee for the
|
0015| portion of the approved health plan cost the employee is
|
0016| responsible for paying. The small employer may contribute to
|
0017| the cost of that plan on behalf of the employee.
|
0018| B. A small employer shall make available to dependent
|
0019| family members of an employee covered by an approved health
|
0020| plan the same approved health plan. The small employer may
|
0021| contribute to the cost of group [family] coverage.
|
0022| C. All premiums collected, deducted from the
|
0023| compensation of employees or paid on their behalf by the small
|
0024| employer shall be promptly remitted to the alliance."
|
0025| Section 49. Section 59A-56-20 NMSA 1978 (being Laws 1994,
|
0001| Chapter 75, Section 20) is amended to read:
|
0002| "59A-56-20. RENEWABILITY.--
|
0003| A. An approved health plan shall contain provisions
|
0004| under which the member offering the plan is obligated to renew
|
0005| the health insurance if premiums are paid until the day the
|
0006| plan is replaced by another plan or the small employer
|
0007| terminates coverage. An individual covered by health insurance
|
0008| under an approved health plan may retain coverage until he
|
0009| [first] becomes eligible for medicare as the primary
|
0010| coverage, except that in a family policy [the age of the
|
0011| younger family member shall be used to continue the coverage
|
0012| and as the basis for eligibility] coverage under an approved
|
0013| health plan shall continue for any person in the family who is
|
0014| not eligible for medicare.
|
0015| B. An approved health plan issued to an eligible
|
0016| individual shall contain provisions under which the member
|
0017| offering the plan is obligated to renew the health insurance
|
0018| except for:
|
0019| (1) nonpayment of premium;
|
0020| (2) fraud; or
|
0021| (3) termination of the approved health plan,
|
0022| except that the individual has the right to transfer to another
|
0023| approved health plan.
|
0024| [B.] C. If an approved health plan ceases to
|
0025| exist, the alliance shall provide an alternate approved health
|
0001| plan.
|
0002| [C.] D. An approved health plan shall provide
|
0003| covered individuals the right to continue health insurance
|
0004| coverage through an approved health plan as individual health
|
0005| insurance provided by the same member upon the death of the
|
0006| employee or upon the divorce, annulment or dissolution of
|
0007| marriage or legal separation of the spouse from the employee or
|
0008| by termination of employment by electing to do so within a
|
0009| period of time specified in the health insurance, if the
|
0010| employee was covered under an approved health plan while
|
0011| employed for at least six consecutive months. The individual
|
0012| may be charged an additional administrative charge for the
|
0013| individual health insurance.
|
0014| E. The right to continue health insurance coverage
|
0015| provided in this section terminates if the covered individual
|
0016| resides outside the United States for more than six consecutive
|
0017| months."
|
0018| Section 50. Section 59A-56-21 NMSA 1978 (being Laws 1994,
|
0019| Chapter 75, Section 21) is amended to read:
|
0020| "59A-56-21. [RULES] REGULATIONS.--The superintendent
|
0021| shall:
|
0022| A. adopt [rules] regulations that provide for
|
0023| disclosure by members of the availability of health insurance
|
0024| from the alliance; and
|
0025| B. adopt [rules] regulations to carry out the
|
0001| provisions of the Health Insurance Alliance Act."
|
0002| Section 51. Section 59A-56-23 NMSA 1978 (being Laws 1994,
|
0003| Chapter 75, Section 23) is amended to read:
|
0004| "59A-56-23. RATES--STANDARD RISK RATE--EXPERIENCE RATING
|
0005| PROHIBITED.--
|
0006| A. The alliance shall determine a standard risk rate
|
0007| index by actuarially calculating the average index rates that
|
0008| the insurer has filed under the requirements of the Small Group
|
0009| Rate and Renewability Act with the benefits similar to the
|
0010| alliance's standard approved health plan. A standard risk rate
|
0011| based on age and other appropriate demographic characteristics
|
0012| may be used. No standard risk rate shall be more than
|
0013| [fifteen] ten percent higher or [fifteen] ten percent
|
0014| lower than the average index rate. In determining the standard
|
0015| risk rate, the alliance shall consider the benefits provided by
|
0016| the approved health plan.
|
0017| B. Experience rating is not allowed other than for
|
0018| reinsurance purposes.
|
0019| C. All rates and rate schedules shall be submitted to
|
0020| the superintendent for approval prior to use."
|
0021| Section 52. Section 59A-56-24 NMSA 1978 (being Laws 1994,
|
0022| Chapter 75, Section 24) is amended to read:
|
0023| "59A-56-24. BENEFIT PAYMENTS REDUCTION.--
|
0024| A. An approved health plan shall be the last payer of
|
0025| benefits whenever any other benefit is available. Benefits
|
0001| otherwise payable under the approved health plan shall be
|
0002| reduced by all amounts paid or payable through any other health
|
0003| insurance and by all hospital and medical expense benefits paid
|
0004| or payable under any workers' compensation coverage, automobile
|
0005| medical payment or liability insurance, whether provided on the
|
0006| basis of fault or no-fault, and by any hospital or medical
|
0007| benefits paid or payable under or provided pursuant to any
|
0008| state or federal [law] program, excluding medicaid.
|
0009| B. The administrator or the alliance shall have a
|
0010| cause of action against any person covered by an approved
|
0011| health plan for the recovery of the amount of benefits paid
|
0012| that are not for [covered] eligible expenses. Benefits due
|
0013| from the approved health plan may be reduced or refused as a
|
0014| set-off against any amount recoverable under this section."
|
0015| Section 53. A new section of the Health Insurance
|
0016| Alliance Act is enacted to read:
|
0017| "[NEW MATERIAL] HEALTH INSURANCE COVERAGE FOR
|
0018| CHILDREN.--
|
0019| A. The board may adopt a children's health insurance
|
0020| program that conforms to one or more prototypes established by
|
0021| the board.
|
0022| B. Members providing approved health plans in the
|
0023| alliance are eligible to bid to provide a children's health
|
0024| insurance program. A children's health insurance program is
|
0025| not considered a separate approved health plan within the
|
0001| meaning of the Health Insurance Alliance Act.
|
0002| C. If an employer offers a group health insurance
|
0003| plan for employees that includes coverage for children and if
|
0004| the employee chooses to provide coverage for eligible children
|
0005| through the children's health insurance program of the alliance
|
0006| instead of the employer's group health insurance plan, the
|
0007| employer shall pay as part of the premium for the children's
|
0008| health insurance program the contribution that the employer
|
0009| would have paid to provide coverage to the child through the
|
0010| employer's group health insurance plan.
|
0011| D. The board shall provide an addendum to the plan of
|
0012| operation for the superintendent's approval to assure the fair,
|
0013| reasonable and equitable administration of the children's
|
0014| health insurance program.
|
0015| E. All policy forms written to conform to the
|
0016| prototype of the children's health insurance programs shall be
|
0017| filed and approved by the superintendent before they are
|
0018| issued."
|
0019| Section 54. A new section of the Health Insurance
|
0020| Alliance Act is enacted to read:
|
0021| "[NEW MATERIAL] EXEMPTION.--The alliance is exempt from
|
0022| payment of all fees and taxes levied by this state or any of
|
0023| its political subdivisions."
|
0024| Section 55. TEMPORARY PROVISION--REPORT.--The department
|
0025| of insurance and the New Mexico health insurance alliance shall
|
0001| prepare and publish a report to the legislature by October 1,
|
0002| 1997 on the alliance program and recommendations to facilitate
|
0003| participation in the alliance programs.
|
0004| Section 56. REPEAL.--Laws 1994, Chapter 75, Section 35 is
|
0005| repealed.
|
0006| Section 57. EMERGENCY.--It is necessary for the public
|
0007| peace, health and safety that this act take effect immediately.
|
0008| - 115 -
|
0009| State of New Mexico
|
0010| House of Representatives
|
0011|
|
0012| FORTY-THIRD LEGISLATURE
|
0013| FIRST SESSION, 1997
|
0014|
|
0015|
|
0016| February 27, 1997
|
0017|
|
0018|
|
0019| Mr. Speaker:
|
0020|
|
0021| Your BUSINESS AND INDUSTRY COMMITTEE, to whom has
|
0022| been referred
|
0023|
|
0024| HOUSE BILL 832
|
0025|
|
0001| has had it under consideration and reports same with
|
0002| recommendation that it DO PASS, amended as follows:
|
0003|
|
0004| 1. On page 12, line 6, strike "twelve" and insert "six".
|
0005|
|
0006| 2. On page 41, line 16, strike "Until July 1, 1998, in" and
|
0007| insert "In".
|
0008|
|
0009| 3. On page 41, line 20, after "practices" insert "except
|
0010| that for individual policies the rating factor of the
|
0011| individual's place of residence may be used instead of the
|
0012| geographic area of the individual's place of employment" and
|
0013| strike "Until July 1, 1998, in" and insert "In".
|
0014|
|
0015| 4. On page 42, strike all of lines 9 through 14.
|
0016|
|
0017| 5. Reletter the following subsection accordingly.
|
0018|
|
0019| 6. On page 47, line 25, remove the brackets and line-
|
0020| through and strike "fifteen".
|
0021|
|
0022| 7. On page 51, line 11, strike "Until July 1, 1998, in" and
|
0023| insert "In".
|
0024|
|
0025| 8. On page 51, strike all of lines 24 and 25 and on page
|
0001| 52, strike all of lines 1 through 4.
|
0002|
|
0003| 9. Reletter the following subsection accordingly.
|
0004|
|
0005| 10. On page 52, between lines 20 and 21, insert the
|
0006| following paragraph:
|
0007|
|
0008| "(1) the exclusion relates to a condition,
|
0009| physical or mental, regardless of the cause of the condition, for
|
0010| which medical advice, diagnosis, care or treatment was
|
0011| recommended or received within the six-month period ending on the
|
0012| enrollment date;".
|
0013|
|
0014| 11. Renumber the succeeding paragraphs accordingly.
|
0015|
|
0016| 12. On page 52, line 22, strike "twelve" and insert "six".
|
0017|
|
0018| 13. On page 58, lines 1 and 2, strike "when the employer is
|
0019| a small employer".
|
0020|
|
0021| 14. On page 58, line 16, after "employee" insert "or a
|
0022| dependent".
|
0023|
|
0024| 15. On page 59, line 11, remove bracket and line through
|
0025| "and" and on line 12 insert an opening bracket before "J.".
|
0001|
|
0002| 16. On page 60, line 5, strike "; and" and insert a period
|
0003| and closing quotation marks.
|
0004|
|
0005| 17. On page 60, strike all of lines 6 through 18.
|
0006|
|
0007| 18. On page 80, lines 4 and 5, strike ", including medicare
|
0008| supplement insurance".
|
0009|
|
0010| 19. On page 80, lines 7 and 8, strike ", long-term care".
|
0011|
|
0012| 20. On page 84, strike all of line 18 following "employers"
|
0013| and strike line 19 through "plans".
|
0014|
|
0015| 21. On page 84, strike all of line 21 following
|
0016| "employers", strike all of line 22 and strike line 23 through
|
0017| "plans".
|
0018|
|
0019| 22. On page 91, lines 19 and 20, remove the brackets and
|
0020| line-through and strike "ten".
|
0021|
|
0022| 23. On page 103, on lines 15 and 16, strike "coverage for a
|
0023| child. The policy shall also provide".
|
0024|
|
0025| 24. On page 105, between lines 5 and 6, insert the
|
0001| following paragraph:
|
0002|
|
0003| "(1) the exclusion relates to a condition,
|
0004| physical or mental, regardless of the cause of the condition, for
|
0005| which medical advice, diagnosis, care or treatment was
|
0006| recommended or received within the six-month period ending on the
|
0007| enrollment date;".
|
0008|
|
0009| 25. Renumber the succeeding paragraphs accordingly.
|
0010|
|
0011| 26. On page 113, lines 3 and 4, remove the brackets and
|
0012| line-through and strike "ten".
|
0013|
|
0014| 27. On page 114, strike all of lines 6 through 25.
|
0015|
|
0016| 28. On page 115, strike all of lines 1 through 13.
|
0017|
|
0018| 29. Renumber the succeeding sections accordingly.
|
0019|
|
0020| 30. On page 115, strike lines 19 and 20.
|
0021|
|
0022| 31. Renumber the succeeding section accordingly.,
|
0023|
|
0024| and thence referred to the JUDICIARY COMMITTEE.
|
0025|
|
0001|
|
0002| Respectfully submitted,
|
0003|
|
0004|
|
0005|
|
0006|
|
0007|
|
0008|
|
0009| Fred Luna, Chairman
|
0010|
|
0011|
|
0012| Adopted Not Adopted
|
0013| (Chief Clerk)
|
0014| (Chief Clerk)
|
0015|
|
0016| Date
|
0017|
|
0018| The roll call vote was 7 For 0 Against
|
0019| Yes: 7
|
0020| Excused: Alwin, Chavez, Lutz, J.G. Taylor, Varela
|
0021| Absent: Getty
|
0022|
|
0023|
|
0024| .117464.5
|
0025| G:\BILLTEXT\BILLW_97\H0832
|
0001|
|
0002| FORTY-THIRD LEGISLATURE
|
0003| FIRST SESSION, 1997
|
0004|
|
0005|
|
0006| March 12, 1997
|
0007|
|
0008| Mr. President:
|
0009|
|
0010| Your CORPORATIONS & TRANSPORTATION COMMITTEE, to
|
0011| whom has been referred
|
0012|
|
0013| HOUSE BILL 832, as amended
|
0014|
|
0015| has had it under consideration and reports same with
|
0016| recommendation that it DO PASS, and thence referred to the
|
0017| PUBLIC AFFAIRS COMMITTEE.
|
0018|
|
0019| Respectfully submitted,
|
0020|
|
0021|
|
0022|
|
0023|
|
0024| __________________________________
|
0025| Roman M. Maes, III, Chairman
|
0001|
|
0002|
|
0003|
|
0004| Adopted_______________________ Not
|
0005| Adopted_______________________
|
0006| (Chief Clerk) (Chief Clerk)
|
0007|
|
0008|
|
0009| Date ________________________
|
0010|
|
0011|
|
0012| The roll call vote was 7 For 0 Against
|
0013| Yes: 7
|
0014| No: 0
|
0015| Excused: Fidel, Griego, Howes
|
0016| Absent: None
|
0017|
|
0018|
|
0019| H0832CT1
|
0020|
|
0021|
|
0022|
|
0023| FORTY-THIRD LEGISLATURE
|
0024| FIRST SESSION, 1997
|
0025|
|
0001|
|
0002| March 16, 1997
|
0003|
|
0004| Mr. President:
|
0005|
|
0006| Your PUBLIC AFFAIRS COMMITTEE, to whom has been
|
0007| referred
|
0008|
|
0009| HOUSE BILL 832, as amended
|
0010|
|
0011| has had it under consideration and reports same with
|
0012| recommendation that it DO PASS.
|
0013|
|
0014| Respectfully submitted,
|
0015|
|
0016|
|
0017|
|
0018|
|
0019| __________________________________
|
0020| Shannon Robinson, Chairman
|
0021|
|
0022|
|
0023|
|
0024| Adopted_______________________ Not
|
0025| Adopted_______________________
|
0001| (Chief Clerk) (Chief Clerk)
|
0002|
|
0003|
|
0004| Date ________________________
|
0005|
|
0006|
|
0007| The roll call vote was 5 For 0 Against
|
0008| Yes: 5
|
0009| No: 0
|
0010| Excused: Boitano, Garcia, Ingle, Rodarte
|
0011| Absent: None
|
0012|
|
0013|
|
0014|
|
0015|
|
0016| H0832PA1
|