The bill proposes amendments to the "Small Employer Health Insurance Availability Act," updating definitions related to health insurance for small employers. It introduces new terms such as "actuarial certification," "adjusted community rating," and "affiliation period," and clarifies existing terms like "affiliate" and "bona fide association." The bill expands the definition of "carrier" to include more entities and revises "creditable coverage" to cover a wider range of health benefits. It also deletes an unspecified subsection (l) and refines the definition of "eligible employee" to account for various employment situations, including certain retirees and former employees. Other terms defined include "enrollment date," "established geographic service area," "family composition," "genetic information," and "governmental plan." The bill also specifies that partnerships are considered "employers" and partners are "participants" in group health plans.

Additionally, the bill defines "health benefit plan" and lists exclusions such as accident or disability income insurance and workers' compensation. It requires carriers of supplemental policies to certify that their products are marketed as supplemental to health insurance. The bill also defines "health maintenance organization" (HMO), "health status-related factor," and provides a detailed definition of "late enrollee." A significant change is the proposed increase in the definition of "small employer" from businesses with no more than fifty eligible employees to those with up to one hundred. This amendment includes self-employed individuals and requires considering affiliated companies as one employer for determining the number of eligible employees. The act would take effect immediately upon passage, expanding the scope of health insurance regulations to include more businesses.