N.Y. Insurance Law § 4701: Legislative findings

§ 4701. Legislative findings. (a) Cooperative health risk-sharing

agreements allow public entities to: share, in whole or part, the costs

of self-funding employee health benefit plans; provide municipal

corporations, school districts and other public employers with an

alternative approach to stabilize health claim costs; lower per unit

administration costs; and enhance negotiating power with health

providers by spreading such costs among a larger pool of risks.

(b) Appropriate safeguards are necessary to help keep self-funded

municipal cooperative health benefits plans from exposing municipalities

and their taxpayers to unpredictable and potentially catastrophic

liabilities. Minimum standards regarding benefits and participation can

better assure that self-funded municipal cooperative health benefit

plans will continue to act responsibly and provide coverage for

high-cost conditions and high-cost individuals.

(c) It is the policy of this state to expand the alternatives

available to public employers by permitting the development of municipal

cooperative health benefit plans while, at the same time, establishing

appropriate standards designed to promote fair competition and sound

operation of such plans on an ongoing basis.

(d) It is the legislative intent that the superintendent implement a

workable system of authorization and regulation of municipal cooperative

health benefit plans in this state, in order to assure that such plans

are:

(1) operated on an actuarially sound basis with appropriate financial

and other standards to protect plan participants and their beneficiaries

as well as local taxpayers; and

(2) not unduly disruptive of the regulated insurance market and public

health programs.