§ 162. Contract for health benefits. 1. The president is hereby\nauthorized and directed to purchase a contract or contracts to provide\nthe benefits under the plan of health benefits determined upon in\naccordance with the provisions of this article. Such contract or\ncontracts shall be purchased from one or more corporations licensed to\ntransact accident and health insurance business in this state or subject\nto article forty-three of the insurance law.\n (a) Alternatively, the president may provide health benefits directly\nto plan participants, in which case the president is hereby authorized\nto purchase a contract or contracts with one or more firms qualified to\nadminister, on New York state health benefit plan's behalf, the plan of\nbenefits required under this article.\n (b) In the event the president elects to provide health benefits\ndirectly to plan participants in accordance with paragraph (a) of this\nsubdivision:\n (i) Any and all health insurance coverage mandated by any law, rule or\nregulation, including but not limited to coverage mandated pursuant to\narticle forty-three of the insurance law, applicable to contracts for\nhealth insurance entered into under this section shall be provided in a\nmanner assuring uninterrupted continuance of coverage for all covered\npersons. For the purposes of this paragraph "coverage" shall include but\nshall not be limited to all benefits, services, rights, privileges and\nguarantees allowed by law;\n (ii) Plan participants shall be afforded all internal and external\nreview and appeal rights as described in article forty-nine of the\ninsurance law;\n (iii) A plan participant receiving covered services rendered by a\nhealth care provider prior to the date upon which the president elects\nto provide health benefits directly to plan participants in accordance\nwith paragraph (a) of this subdivision shall be permitted to continue\nreceiving services from such health care provider after the effective\ndate of the election at the discretion of such plan participant.\nServices provided by such health care provider after the effective date\nof the election as described in this paragraph shall be covered in a\nmanner consistent with covered services provided directly to plan\nparticipants in accordance with paragraph (a) of this subdivision; and\n (iv) Notwithstanding the provisions of this subdivision, the\npresident's election to provide health benefits directly to plan\nparticipants shall not constitute the doing of insurance business within\nthe meaning of article eleven of the insurance law; provided however,\nthe provision of direct benefits as per this subdivision shall be\nsubject to review by the superintendent of financial services for the\npurposes of ensuring compliance with applicable insurance law and any\nand all associated insurance rules and regulations as noted in this\nsubdivision.\n (c) All of the benefits to be provided under this article may be\nincluded in one or more similar contracts, or the benefits may be\nclassified into different types with each type included under one or\nmore similar contracts issued by the same or different companies.\n 2. A reasonable time before entering into any insurance contract or\ncontract with an administrator or administrators hereunder, the\npresident shall invite proposals from such qualified insurers or\nadministrators as in his or her opinion would desire to accept any part\nof the insurance coverage or administrative services authorized by this\narticle.\n 3. The president may arrange with any corporation licensed to transact\naccident and health insurance business in this state or subject to\narticle forty-three of the insurance law issuing any such contract to\nreinsure portions of such contract with any other such corporation which\nelects to be a reinsurer and is legally competent to enter into a\nreinsurance agreement.\n 4. The president may designate one or more of such corporations as the\nadministering
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