45th legislature - STATE OF NEW MEXICO - first session, 2001

RELATING TO HEALTH CARE; AMENDING THE NEW MEXICO INSURANCE CODE TO PROVIDE FOR MULTIPLE-EMPLOYER HEALTH CARE SELF-INSURANCE.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

Section 1. Section 59A-15-20 NMSA 1978 (being Laws 1991, Chapter 125, Section 26) is amended to read:

"59A-15-20. MULTIPLE-EMPLOYER WELFARE ARRANGEMENTS--

REGULATIONS.--

A. The superintendent, after a public hearing [thereon], shall, [make] no later than October 1, 2001, adopt reasonable rules and regulations governing any employee welfare benefit plan that is a multiple-employer welfare arrangement. The regulations at a minimum shall provide for:

(1) registration of all such plans and standards requiring the maintenance of specified levels of reserves; [and]

(2) minimum solvency requirements;

(3) accounting standards and reporting requirements;

(4) standards for appropriate investment of assets;

(5) standards for excess or stop-loss insurance coverage;

(6) specified levels of contributions that any such plan, or any trust established under such a plan, must meet;

(7) methods for equitable assessment of member employers for any funding shortfall; and

(8) standards for adequate governance.

B. The rules and regulations shall provide for compliance with the Patient Protection Act and provide standards for minimum benefits.

C. Any [such] standards for determining or assuring solvency shall not be applicable to plans that are fully insured by carriers authorized to transact insurance in New Mexico. If at any time a plan does not meet the standards established, [no benefits may be paid under the plan] the superintendent may take action pursuant to the Insurance Code."