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IIABNY Notches Wins in 2016 New York State Budget
Spending plan protects contractors, health care providers and insurance brokers
(Dewitt, New York, Apr. 6, 2016) - The Independent Insurance Agents & Brokers of New York (IIABNY) won significant victories in the recently-passed 2016-17 New York State budget. New York’s oldest insurance producer trade organization successfully defended construction businesses, health care providers and insurance brokers in the negotiations over the spending plan.
IIABNY defeated a proposal that would have allowed some governmental entities to expand their use of “wrap-up” programs. In a wrap-up, the project’s owner selects and purchases the insurance for participants in the project. Rather than choosing insurance programs tailored to their own needs, the contractors must accept a program that protects the owner’s interests.
Wrap-ups may leave contractors uninsured for some serious risks. They may also impose unaffordable deductibles on contractors and reduce incentives for safe operations. IIABNY has long opposed expanding governmental entities’ use of wrap-up insurance programs. The group spotted the measure in the governor’s budget proposal and took the lead in fighting it. IIABNY enlisted organized labor and contractors’ groups to oppose it and ensure its defeat.
IIABNY also successfully pushed for a fund to pay unpaid claims left by the failure last year of Health Republic Insurance of New York. Established under the Consumer Operated and Oriented Plan (CO-OP) program of the federal Affordable Care Act, Health Republic’s financial condition deteriorated in 2015. Last fall, the New York State Department of Financial Services (DFS) ordered it to cease writing new policies and to wind down its operations as existing policies expired. The plan’s collapse left health care providers and insurance brokers unpaid for their services.
IIABNY urged lawmakers to set up a special fund to pay Health Republic’s claimants and brokers. The adopted budget established a “Health Republic Insurance of New York Fund.” Amounts the state collects from various judgments and settlements over the next three years will finance the fund. The state comptroller and the DFS will make payments from the fund to cover debts left over from the future liquidation of the plan’s assets.
The budget requires the legislature to take further action to set the terms of payments from the fund. IIABNY will join discussions of these bills to ensure that health care providers and brokers receive compensation for their work.
The Independent Insurance Agents & Brokers of New York, Inc. has represented the common business interests of independent insurance professionals since 1882. More than 1,750 agencies and their 13,000 plus employees currently rely on the DeWitt, New York-based not-for-profit trade association for legislative advocacy, continuing education and other means of industry support. In addition, most IIABNY members proudly identify themselves as Trusted Choice® agents and brokers, a national consumer brand uniting more than 21,000 independent agencies across the United States.
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