NY gov signs bills to improve health care access

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July 30, 2009

By VALERIE BAUMAN The Press Republican Thu Jul 30, 2009, 07:36 AM EDT

ALBANY, N.Y. (AP) — New Yorkers who lose their jobs will now be able to continue to get lower cost health care coverage for twice as long under a new law.

Gov. David Paterson said the bill he signed Wednesday will make health care more affordable and accessible through several changes.

It will give people 36 months to use COBRA after losing their jobs. COBRA allows people who have lost their jobs to continue with the same insurance plan they had under an employer. It's less than half the cost of insurance on the open market.

"By making insurance coverage more accessible, we bring people into the system before they need emergency treatment, reducing the overall cost of health care to the state," Paterson said in a statement, noting that 2.5 million New Yorkers are without health insurance.

A second bill will allow families to cover children up to age 29 under insurance provided by their employer. Children will be eligible if they're unmarried and don't have access to employer-provided insurance. Families must pay the premiums instead of employers, but it will cost less under group policies than if the young adult took out an individual policy.

Of New York's uninsured, nearly one in three is between the ages of 19 and 29. Most plans now stop this coverage at 23 years old.

The health bills are designed to help people who can't afford private insurance, but don't qualify for Medicaid — the government health care coverage for the poor.

One of Paterson's top priorities for health insurance reform didn't make it into law. The bill would have required health insurers to get state approval before raising premiums — a move strongly opposed by the powerful health insurance lobby.

A spokesman for Paterson said the bill didn't make the final cut while going through the negotiation process with the legislature, but Paterson plans to push for this type of reform in the future.

The state's current system gives insurance companies broad discretion for rate increases without state approval. State Insurance Superintendent Eric DiNallo and Paterson opposed this method, arguing self-regulation hasn't led to the best pricing for patients.

The New York Health Plan Association has argued the measure Paterson supported would have exerted price controls on health care, while ignoring the factors that contribute to the cost of health care, such as hospitals, providers, medication and other expenses.

Paterson also signed a bill Wednesday to extend the Starrett City affordable housing program in Brooklyn. The bill extends affordable housing for another 30 years in the nearly 6,000-unit complex. The bill also provides refinancing so the complex can use $40 million for structural improvements.

Another bill Paterson signed into law Wednesday will strengthen the state's tax credit for historic preservation. The idea is to offer incentives to developers to invest in urban neighborhoods, create jobs, increase property values and to revitalize historic areas.