Requiring notice to the insurance department of the discontinuance of certain types of insurance, including Medicare Advantage Plans.
Impact
If passed, this bill would bring significant changes to existing policies by standardizing the notification process across all licensed insurance companies in New Hampshire. Currently, the lack of a consistent notice period for discontinuing lines of insurance can lead to confusion and potential gaps in coverage for residents. By enforcing a minimum notice period, the bill seeks to promote transparency and protect consumers, particularly in the sensitive area of Medicare health benefits, where timely communication is crucial for individuals relying on these plans for their healthcare needs.
Summary
Senate Bill 121-FN introduces regulations requiring insurance companies to provide advance notice to the insurance department before discontinuing certain lines of business, specifically targeting Medicare Advantage Plans. The bill mandates a notice period of 120 days prior to ceasing operations on these insurance products. This requirement is aimed at helping the insurance department better manage transitions in healthcare coverage and ensure that policyholders are adequately informed of changes that may affect their insurance plans.
Contention
Notable points of contention surrounding SB 121-FN may emerge regarding the administrative burden it places on insurance providers, particularly smaller companies that may struggle with the mandated notification processes. Critics might argue that while the intent is to protect consumers, the requirement could stifle innovation and flexibility in the insurance market. Additionally, industry stakeholders will be watching to see if there is pushback against the timeframe established, as companies could argue that 120 days is not always feasible depending on the circumstances of the discontinuation. Supporters, on the other hand, may emphasize that this bill is crucial for ensuring that changes to significant insurance offerings are communicated effectively to those most impacted.
Extending the New Hampshire granite advantage health care program and reestablishing the commission to evaluate the effectiveness and future of the New Hampshire granite advantage health care program.