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Regular Session, 2010
HOUSE BILL NO. 619
BY REPRESENTATIVE PEARSON
INSURANCE/HEALTH-ACCID: Provides relative to state continuation of group health
and accident insurance coverage upon termination of employment
AN ACT1
To amend and reenact R.S. 22:1046(C), (F), and (H), relative to group health and accident2
insurance policies; to provide with respect to state continuation of such group health3
and accident insurance coverage upon termination of employment, including4
determining whether dependents are covered under continuation, extending the5
timeframe for election of continuation, and providing with respect to the notification6
of election of continuation; and to provide for related matters.7
Be it enacted by the Legislature of Louisiana:8
Section 1. R.S. 22:1046(C), (F), and (H) are hereby amended and reenacted to read9
as follows:10
ยง1046. Group health insurance continuation11
* * *12
C. Continuation shall only be available be available only to an employee or13
member who has been continuously insured under the group policy, or for similar14
benefits under any other group policy that it replaced, during the period of three15
consecutive months immediately prior to the date of termination. The continued16
policy must may cover, at the option of the employee or member, all dependents17
covered under the group policy.18
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HB NO. 619
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F. An employee or member electing continuation shall pay to the group1
policyholder or his employer, in advance, the amount of contribution required by the2
policyholder or employer, but not more than the full group rate for the insurance3
applicable to the employee or member under the group policy on the due date of each4
payment. The employee or member shall not be required to pay the amount of the5
contribution less often than monthly. In order to be eligible for continuation of6
coverage, the employee or member shall have sixty days from the date of termination7
to make a written election of continuation, on a form furnished provided by the8
group policyholder , on the date of termination and pay the first contribution, in9
advance, to the policyholder or employer on or before the date on which the10
employee's or member's insurance would otherwise terminate. at the time of11
election. The sixty-day period of election for the employee or member shall not12
begin to run until the group policyholder provides the election form for state13
continuance to the employee or member. Such form shall be as prescribed in this14
Section.15
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H. A notification of the state continuation privilege shall be clearly printed17
in at least twelve-point boldface capital letters and included in each individual18
certification of coverage. on any individual certificate of coverage issued by a health19
insurance issuer to an employee or member upon enrollment or renewal of the group20
policy.21
DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part
of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute
part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
Pearson HB No. 619
Abstract: Provides relative to state continuation of group and accident health insurance
coverage upon termination of employment.
Present law provides that, under certain conditions, a group health and accident insurance
policy that provides coverage for employees or members and dependents and which
terminates upon termination of employment may be continued subject to certain criteria,
including continued payment of the entire premium by the employee. HLS 10RS-1030 REENGROSSED
HB NO. 619
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Proposed law changes present law as follows:
(1)Present law requires that the continued policy must cover all dependents covered
under the group policy.
Proposed law instead makes such coverage of all dependents optional for the
employee or member.
(2)Present law requires that, in order to be eligible for continuation of coverage, the
employee or member make a written election of continuation on a form furnished
by the group policyholder. Also requires that such employee or member pay the first
contribution, in advance, to the policyholder or employer on or before the date on
which the employee's or member's insurance would otherwise terminate.
Proposed law gives the employee or member 60 days from the date of termination
to elect continuation. Specifies that this 60-day period shall not begin to run until
the group policyhol der provides the election form for state continuance to the
employee or member. Additionally requires that the form be provided by the group
policyholder on the date of termination and that the first contribution shall be paid
at the time of election.
(3)Present law requires that a notification of the continuation privilege be included in
each individual certification of coverage.
Proposed law additionally requires that a notification of the state continuation
privilege shall be clearly printed in at least 12-point boldface capital letters and
included on any individual certificate of coverage issued by a health insurance issuer
to an employee or member upon enrollment or renewal of the group policy.
(Amends R.S. 22:1046(C), (F), and (H))
Summary of Amendments Adopted by House
Committee Amendments Proposed by House Committee on Insurance to the original
bill.
1. Clarified that notification of the state continuation privilege shall be included on
any individual certificate of coverage issued by a health insurance issuer to an
employee or member upon enrollment or renewal of the group policy.