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2006 Proposed NYS Health Insurance Mandates

Currently, there are a series of health insurance mandate bills circulating in Albany. These bills would force employers to provide health insurance coverage to their employees—with variations regardless of business size, employee-hours worked, industry sector or geographic location within New York State. This is a very serious and very costly issue.

The economic consequence of these bills is huge—even in the most lenient legislative version. Here are the details on those bills:

Proposed Legislation:

Senate Bill 6472-A (Savino, Schneiderman, Klein, Onorato, A. Smith, Stavisky) Senate Labor Committee- Same as A. 9776-A (Peralta, Alfano) currently in Assembly Labor Committee

• Retail store (that sells groceries) has at least 500 employees statewide, or ten thousand square feet of store selling space
• Employers make minimum health care expenditure of no less the three dollars multiplied by the total number of hours worked by employee over the calendar year
• This rate to be automatically adjusted each year to reflect increases to the medical consumer price index.
• Legislative intent; retail industry cutting coverage for employees
• Defines: administering agency, covered employee, employee, family of employee, groceries, health care expenditure, health care services, minimum health care expenditure, person
• Unlawful for employer to discriminate and can have civil action brought against take effect 19th day after bill becomes law

Senate Bill 6644 (Maziarz) currently in Senate Labor Committee

• Over 10,000 employees
• Exemption for federal government,state government, and political subdivisions
• Payments by employer for employeebenefits valued at $4.17 per hour
• Rate will automatically increase each year tied to the federal poverty guidelines for a family of four.
• Money can be used to purchase benefits or added to paycheck
• Defines; benefits department, employee, federal poverty guidelines, large employer
• Beginning of effective date, 118 days after bill become law,employer pays minimum wage or higher and not less than a benefits supplemental rate of $4.17
• Violation for employer or any other party to discriminate against payment to employees
• Department of State Labor may investigate any possible violation
• Employee victim of violation may bring civil action against discriminating party

Assembly Bill 9534-B - (O’Donnell, Scarborough, Millman, McLaughlin, Benjamin, Christensen, Peoples,Zebrowski, Lupardo, Lavelle, Cahill, A. Cohen, Schroeder, Gordon, Wright, Boyland, Brennan, Brodsky, Colton, Cusick, L. Diaz, Farrell, Galef, Glick, Hoyt, Jacobs, Lafayette, Lifton, Nolan, Perry, Pheffer, J. Rivera, N. Rivera, Robinson, Tonko)

• More than 10,000 employees (full or part-time)
• Exemption for federal government, state government, and political subdivisions
• Employer will contribute the difference between the amount the employer spends on health care benefits for employees and either 6%(not-for-profit) or 8% forprofit) to the fair share health fund
• When calculating the percentage of total wages paid, the employer may exempt wages paid to an employee in excess of the median household income in the state.
• Amends labor law and adds new section entitled: “The fair share health program”
• Employers report to department of labor number of employees, amounts spent on health insurance and benefits, and percentage of total wages paid that was spent on health insurance benefits
• Section 211-b provides duties for implementation by Department of Labor
• Amends State Finance Law by adding new section 97-m which establishes the fair share health fund
• Monies will be used to provide health insurance for employees of employers who are required to make payment to the fund and have no health insurance
• Section 3 requires annual reports to governor
• Effective date 120th day after bill becomes law

Senate Bill 15397-03-6 (Legislative Bill Draft) Spano/Gottfried bill on
behalf of the Working Families Party - The "Fair Share for Healthcare Act"

• 100 employees or more -Annual assessment paid by covered employer; determined by multiplying the fair share assessment rate of $3 dollars per hour by the total number of hours worked.
• Employers can claim credit against this assessment for “total health care expenditures made during the same tax year”
• $3 will increase automatically each year at medical consumer price index;
• Exempts agriculture and manufacturing
• Covered employers’ obligation to pay assessment commences with first tax year beginning or after January 1st after this becomes law
• Article shall not be construed to supersede, limit or preempt, any local or state law establishing other obligations
• State finance law amended by adding new section 80, Fair share health care fund: 1.) established by comptroller and commissioner of taxation and finance, 2.) Consist of all revenue collected pursuant to the assessment, 3.) Monies in fund shall be used to provide coverage to covered employees of covered employers, who do not have health care benefits from any other source

Senate Bill 6989 (Rules) - currently in Senate Labor Committee

• All employers regardless of size
• Each quarter employer contributes $750 per worker multiplied by number of full time employees in that quarter. Payment no later then 15th of the succeeding month.
• Section 950: Health care insurance fund established
• Section 951: Employee health care insurance advisory board created to advise the governor and the legislature on improved methods of providing health insurance coverage.
• Applies to employers who do not pay at least 80% of the employee’s health insurance premium
• Exemption for state and local government nine member; 3 appointed by speaker of assembly; 3 appointed by temporary president of the senate; 1 by minority leader of assembly; 1 by minority leader or senate; 1 by governor who shall serve as chair. Four members represent employers and four recommended by AFL-CIO. Board shall: consider cost of health insurance and recommend changes; annually determine the number of employees covered by health plans and percentage that is uninsured.
• Effective date is April 1st succeeding date bill becomes law

MACNY urges you to register your opposition to these bills immediately by clicking here. With your approval, letters will be faxed on your behalf to your Senator, Assembly Member and the legislative leaders.