HOUSE BILL 695

48th legislature - STATE OF NEW MEXICO - first session, 2007

INTRODUCED BY

Miguel P. Garcia

AN ACT

RELATING TO HEALTH COVERAGE; ADDING CERTAIN STATE CONTRACTORS AS ELIGIBLE FOR THE SMALL EMPLOYER INSURANCE PROGRAM.

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

     Section 1. Section 10-7B-2 NMSA 1978 (being Laws 1989, Chapter 231, Section 2, as amended) is amended to read:

     "10-7B-2. DEFINITIONS.--As used in the Group Benefits Act:

          A. "committee" means the group benefits committee;

          B. "director" means the director of the risk management division of the general services department;

          C. "employee" means a salaried officer, employee or legislator of the state; a salaried officer or an employee of a local public body; or an elected or appointed supervisor of a soil and water conservation district;

          D. "local public body" means any New Mexico incorporated municipality, county or school district;

          E. "professional claims administrator" means any person or legal entity that has at least five years of experience handling group benefits claims, as well as such other qualifications as the director may determine from time to time with the committee's advice;

          F. "small employer" means:

                (1) a person having for-profit or nonprofit status that employs an average of fifty or fewer persons over a twelve-month period; or

                (2) a person that has a current contract for state business specific to health and human services programs and employs fewer than an average of five hundred persons over a twelve-month period; and

          G. "state" or "state agency" means the state of New Mexico or any of its branches, agencies, departments, boards, instrumentalities or institutions."

     Section 2. Section 10-7B-6.1 NMSA 1978 (being Laws 2005, Chapter 301, Section 4 and Laws 2005, Chapter 305, Section 4) is amended to read:

     "10-7B-6.1. SMALL EMPLOYER HEALTH CARE COVERAGE.--

          A. The director may enter into an agreement with a small employer to voluntarily purchase health care coverage offered pursuant to the Group Benefits Act for persons and dependents eligible through the small employer.

          B. The director may enter into agreements with an association, cooperative or mutual alliance representing small employers to provide outreach and assistance for small employers to voluntarily purchase health care coverage offered pursuant to the Group Benefits Act for persons and dependents eligible through the small employer.

          C. The director shall only permit voluntary purchase of health care coverage by small employers if the small employer has not offered health care coverage to persons and dependents eligible through a small employer for a period of at least twelve months prior to enrollment in the coverage offered pursuant to the Group Benefits Act; provided, however, that the twelve-month waiting period does not apply to a small employer as defined in Paragraph (2) of Subsection F of Section 10-7B-2 NMSA 1978.

          D. A separate account shall be maintained for small employers that voluntarily elect to purchase health care coverage offered pursuant to the Group Benefits Act to provide separate accounting, payment and private funding of health care coverage for small employers. The funds in the small employers account shall be maintained separately in actuarially sound condition as evidenced by an annual written certification of a qualified actuary, including verification that the premiums charged are actuarially sound in relation to the benefits provided. This certification shall be filed with the superintendent of insurance."

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