BILL NUMBER: S4872
SPONSOR: FAHY
 
TITLE OF BILL:
An act to amend the general municipal law, in relation to providing
notice of health insurance contracts for retired officers, employees,
and their families
 
PURPOSE:
To provide notice to retirees affected by proposed changes in a health
insurance plan before the changes are adopted by a public corporation.
 
SUMMARY OF SPECIFIC PROVISIONS:
Section 1 of the bill would amend General Municipal Law Section 92 by
adding a new subdivision 2-a to require that the governing board of a
public corporation give forty-five days prior notice of a change in a
health insurance plan to retired employees or their families who are
covered under such plan. Where the contract, plan or amendment is
contracted for as part of negotiations between a public corporation and
a recognized and certified employee organization, such notice shall be
given at the time such health insurance contract is binding on the
covered officers, retired employees or families. This section also
provides that such written notice shall contain either: (a) the full
text of such proposed contract, plan or amendment and any relevant
financial information including, but not limited to the cast of the
proposed contract, plan or amendment to the public corporation and the
cost to the covered retired officers, retired employees, or their fami-
lies; or, (b) the general terms of the proposed contract, plan or amend-
ment along with the physical location and web address to a secure
website where the covered retired officers, retired employees or their
family members can obtain the full text of such proposed contract, plan
or amendment and any relevant financial information including, but not
limited to the cost of the proposed contract, plan or amendment to the
public corporation and the cost to the covered retired officers, retired
employees, or their families.
 
JUSTIFICATION:
There are no statutory provisions requiring that retired employees
be-notified of a proposed change in their health insurance plan. With
the cost of health insurance rapidly rising, it is essential that
retired employees and their families who are financially affected be
given appropriate notice when a governmental unit changes their health
benefits. This is especially true for retired public employees who have
no collective bargaining rights and are often confronted after-the-fact
or without prompt notice of higher premium charges or co-pay amounts
without concomitant increases in their pensions. The Governor's veto
message indicated the notice period of time was too long. This bill has
been revised to decrease the notice required from 90 days to 45 days to
address the Governor's concern.
 
LEGISLATIVE HISTORY:
2023/2024 - S2690
2021/2022 - S7074
2019/2020 - S5930
2017/2018 - S4324
2015/2016 - S2448A
 
FISCAL IMPLICATIONS:
There may be minor costs associated with the distribution of the notice
but cost savings from retired employees' offering cost effective alter-
natives to the proposed changes.
 
EFFECTIVE DATE:
This act shall take effect immediately and shall apply to any health
insurance contract or plan entered into, renewed, modified, or amended
on or after such effective date.