SENATE BILL REPORT
SB 6713
BYSenators McCaslin and Smith
Permitting persons to continue group health insurance after the group coverage is terminated, subject to certain conditions.
Senate Committee on Financial Institutions & Insurance
Senate Hearing Date(s):February 4, 1988
Senate Staff:Benson Porter (786-7470)
AS OF FEBRUARY 3, 1988
BACKGROUND:
Health insurers, health care contractors and health maintenance organizations (HMOs) are required to offer a conversion policy or contract to any person covered under a group health plan upon termination of the person's eligibility for coverage under the group health plan. The conversion plan must conform to statutory benefit requirements and restrictions.
Apart from the conversion policy requirements, insurers, contractors, and HMOs are not required to admit a person under another group plan without proof of insurability.
SUMMARY:
If a person's group health plan is cancelled or nonrenewed by an insurer, contractor, or HMO, the person shall be permitted to obtain coverage under a group plan issued to a different group by the cancelling insurer, contractor, or HMO without proof of insurability, provided, however, the person was eligible for coverage under the different group at the time of cancellation.
The insurer, contractor, or HMO may not charge the person an amount greater than that charged to other members of the different group.
Appropriation: none
Revenue: none
Fiscal Note: none requested