BILL NUMBER: S5047
SPONSOR: BAILEY
 
TITLE OF BILL:
An act to amend the insurance law, in relation to the offering of reward
or incentive programs to eligible members
 
PURPOSE:
The purpose of this bill is to allow insurers to apply to the Department
of Financial Services for approval to offer voluntary incentives or
rewards programs.
 
SUMMARY OF PROVISIONS:
Subsection (c) of section 4224 of the insurance law, as amended by chap-
ter 496 of the laws of 2013, is amended and a new subsection (g) is
added to authorize health insurers to offer voluntary incentives for
rewards programs.
 
JUSTIFICATION:
This legislation would allow health insurers and HMOs to apply to the
Department of Financial Services (DFS) to be allowed to offer voluntary
incentives or rewards programs to support wellness, primary or preventa-
tive care, population health, care coordination, care management,
disease management, mental health and substance use disorder treatment
initiatives, evidence-based treatment, or quality and cost containment
activities. Currently, health insurance companies are prohibited from
offering incentive based programs through DFS regulation. Many employers
and individuals would benefit from the use of such programs, which can
improve health outcomes. The bill would also provide DFS with greater
flexibility in its review of broker commissions.
 
LEGISLATIVE HISTORY:
2023-24: S2684 - Passed Senate
2021-22: S3573 - Referred to Insurance
2019-20: S5929a - Referred to Insurance
 
FISCAL IMPLICATIONS:
None.
 
EFFECTIVE DATE:
Immediately.

Statutes affected:
S5047: 4224 insurance law, 4224(c) insurance law