New York State School Boards Association

Small Group Health Insurance Premiums: Advocacy Alert

January 5, 2016

Small Group Health Insurance Premiums

The Governor’s end of year action will provide important relief for school districts with 51-100 employees.  The Governor signed two bills, S.5928-a (Seward) / A.8134-a (Seawright) and S.6400 (Seward) / A.8300 (Seawright), that passed with strong support by NYSSBA, which will ensure that these small school districts do not see a significant increase in health insurance premiums because of a change relating to the legal definition of a “small group” for health insurance.

If the bills had not been signed, school districts with 51-100 employees would have been required to move to more expensive “community rated” health insurance plans. This could have led to the breakup of some health insurance consortiums and substantial increases to overall health insurance costs for these districts.

Delaying the small group definitional change was a top priority for NYSSBA and we are pleased that approximately 160 districts have been protected. The approval message indicated that there will be some additional changes during the 2016 legislative session. The NYSSBA Governmental Relations team will keep you apprised of future developments and continue to advocate to ensure that districts are not subjected to significant increases in health insurance costs.

Governor Cuomo Approval Memorandum for the bills:
Approval Memorandum - No. 43 Chapter 589

NYSSBA letter to the Governor:
A.8300 (Seawright) / S.6004 (Seward)

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