New York Governor David A. Paterson recently signed into law three Governor’s Program bills. “We must take the necessary steps to improve our broken health care system. By making insurance coverage more accessible, we bring people into the system before they need emergency treatment, reducing the overall cost of health care to the State,” states Governor Paterson.

WHAT DOES THIS MEAN TO YOU AS AN EMPLOYEE?

There are three bills that have been signed into law. The details of this legislation are listed below:

Expand COBRA for Employees to 36 Months:
This law is effective as of July 1, 2009. This bill will increase the period for employees who lose their jobs to continue their health insurance under COBRA from 18 to 36 months.

Insure Dependents through Age 29:
This law is effective as of September 1, 2009. This bill requires insurers to allow unmarried children through age 29 – regardless of financial dependence – to be covered under a parent’s group health insurance plan. Under the new law, premiums will be paid for by families, not employers, and would cost less because coverage is under group plans rather than individual plans. The law also requires insurers to offer employers an option to purchase coverage that includes young adults as dependents in family policies through age 29.

Managed Care Reform:
This law is effective immediately. This legislation will make sure you receive appropriate care and protect you against inappropriately delayed or denied claims.

With respect to self-insured plans, the federal Employee Retirement Income Security Act of 1974, as amended (“ERISA”) preempts all state law mandates. As such, self-insured plans would be exempt from this legislation.

WHAT SHOULD I DO NEXT?
If you or a family member has questions about this notice please feel free to reach out to your BenefitsVIP team for assistance. As your employer’s broker, Corporate Synergies will continue to closely monitor this issue and will keep participants informed of any additional changes as they occur.

Source:  http://www.state.ny.us/governor/press/press_0729095.html

This alert is a legislative update designed to help you administer your employee benefits program and is not legal counsel. Please consult with an attorney for legal advice.