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1999 SESSION

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HB 1936 Accident and sickness insurance; group policies; etc.

Introduced by: Harvey B. Morgan | all patrons    ...    notes | add to my profiles | history

SUMMARY AS PASSED:

Accident and sickness insurance; group policies; notification to employees upon termination of coverage. Requires employers who (i) assume all or part of the cost of their employees’ health insurance, or (ii) provide a facility for deducting the health insurance premium amount from their employees’ salaries and remitting such premium to the health insurer, to give written notice to employees in the event of termination of the insurance not later than 15 days after the termination of a self-insured plan or not later than 15 days after receipt of a notice of termination of an insurance plan. Any employer who fails to remit funds collected from an employee to the insurer or plan may be subject to civil suit for any medical expenses the employee may become liable for as a result of the employer letting such coverage be terminated. When coverage is terminated due to the nonpayment of premium by the employer, the insurer or health plan may not terminate coverage until the employer has been provided with a written notice of the termination date, which must not be less than 15 days from the mailing of the notice.

SUMMARY AS PASSED HOUSE:

Accident and sickness insurance; group policies; notification to employees upon termination of coverage. Prohibits insurers from terminating group insurance coverage (in circumstances where the employer’s failure to remit the premium is the basis for termination) until 15 days after each individual covered under the policy has been mailed a written notification informing him of the impending termination and that the termination is due to nonpayment of premium by the employer. The bill also clarifies that employers who deduct the full amount of premiums from employees’ salaries and remit these premiums to the insurer must give written notice to participating employees when a group policy is terminated or when notice of termination is received. Requires employers who (i) assume all or part of the cost of their employees’ health insurance or (ii) provide a facility for deducting the health insurance premium amount from their employees’ salaries, and remitting such premium to the health insurer to give written notice to employees in the event of termination of the insurance not later than 15 days after the termination of a self-insured plan or not later than 15 days after receipt of a notice of termination of an insurance plan. Any employer who fails to remit funds collected from employee to the insurer or plan may be subject to civil suit for any medical expenses the employee may become liable for as a result of the employer letting such coverage be terminated. When coverage is terminated due to the nonpayment of premium by the employer, the insurer or health plan may not terminate coverage until the employer has been provided with a written notice of the termination date, which must not be less than 15 days from the mailing of the notice.

SUMMARY AS INTRODUCED:

Accident and sickness insurance; group policies; notification to employees upon termination of coverage. Prohibits insurers from terminating group insurance coverage (in circumstances where the employer’s failure to remit the premium is the basis for termination) until 15 days after each individual covered under the policy has been mailed a written notification informing him of the impending termination and that the termination is due to nonpayment of premium by the employer. The bill also clarifies that employers who deduct the full amount of premiums from employees’ salaries and remit these premiums to the insurer must give written notice to participating employees when a group policy is terminated or when notice of termination is received.