The bill amends Section 27-50-5 of the "Small Employer Health Insurance Availability Act" to introduce new provisions regarding premium rates for health benefit plans. Notably, it establishes that premium rates can only vary based on age and family composition, with specific guidelines on how age adjustments should be calculated. The bill also allows small employer carriers to create separate rates for individuals aged sixty-five or older, depending on whether Medicare is the primary payer. Additionally, it sets a cap on the highest premium rate for each family composition type, ensuring it does not exceed four times the lowest premium rate for that composition.

Furthermore, the bill expands the definition of bona fide associations to include members of the greater Providence Chamber of Commerce, thereby subjecting them to the same premium rate requirements as other associations, excluding the Rhode Island Builders' Association. The legislation also emphasizes the need for small employer carriers to maintain transparency in their rating practices and to provide detailed descriptions of their methods to the health insurance commissioner. The act is set to take effect upon passage.

Statutes affected:
5568: 27-50-5