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Sponsored byAndrew Molitor+5 co-sponsors
Last updated Apr 8, 2026 · NY · Source: LegiScan ↗
This bill creates the 'small business health plan act' by amending multiple sections of New York insurance law. It exempts health insurance policies offered to small businesses (as defined in economic development law) from standard mandated coverages, allowing insurers to sell individual or small-group plans with fewer required benefits when the business subsidizes them. Riders for additional coverages are explicitly permitted.
STATE OF NEW YORK ________________________________________________________________________ 10904 IN ASSEMBLY April 8, 2026 ___________ Introduced by M. of A. MOLITOR -- read once and referred to the Commit- tee on Insurance AN ACT to amend the insurance law, in relation to enacting the "small business health plan act" The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Short title. This act shall be known and cited as the 2 "small business health plan act". 3 § 2. Subsection (h) of section 3216 of the insurance law is amended by 4 adding a new paragraph 7 to read as follows: 5 (7) any policy or contract offered to owners or employees of a small 6 business, as such term is defined in section one hundred thirty-one of 7 the economic development law, as a benefit of owning or being employed 8 by such business. 9 § 3. Section 3221 of the insurance law is amended by adding a new 10 subsection (w) to read as follows: 11 (w) This section shall not apply to any policy or contract offered to 12 owners or employees of a small business, as such term is defined in 13 section one hundred thirty-one of the economic development law, as a 14 benefit of owning or being employed by such business. 15 § 4. The insurance law is amended by adding a new section 3217-k to 16 read as follows: 17 § 3217-k. Small business owner and employee insurance exemption. (a) 18 For the purposes of this section, the term "small business" shall have 19 the same meaning as such term is defined in section one hundred thirty- 20 one of the economic development law. 21 (b) Notwithstanding any other provision of law to the contrary, insur- 22 ers may offer to the owners or employees of a small business individual 23 and/or small group accident and health insurance policies which do not 24 provide for coverages required under this chapter where such small busi- 25 ness is subsidizing such policies. Such policies may include riders for 26 any coverages, including coverages required for other similar policies 27 under this chapter. EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD15419-02-6 A. 10904 2 1 § 5. Section 4303 of the insurance law is amended by adding a new 2 subsection (yy) to read as follows: 3 (yy) This section shall not apply to any policy or contract offered to 4 owners or employees of a small business, as such term is defined in 5 section one hundred thirty-one of the economic development law, as a 6 benefit of being employed by such business. 7 § 6. The insurance law is amended by adding a new section 4306-j to 8 read as follows: 9 § 4306-j. Small business employee insurance exemption. (a) For the 10 purposes of this section, the term "small business" shall have the same 11 meaning as such term is defined in section one hundred thirty-one of the 12 economic development law. 13 (b) Notwithstanding any other provision of law to the contrary, insur- 14 ers may offer to the owners or employees of a small business individual 15 and/or small group accident and health insurance policies which do not 16 provide for coverages required under this chapter where such small busi- 17 ness is subsidizing such policies. Such policies may include riders for 18 any coverages, including coverages required for other similar policies 19 under this chapter. 20 § 7. This act shall take effect immediately.
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