§ 4326. Standardized health insurance contracts for qualifying small\nemployers and individuals. (a) A program is hereby established for the\npurpose of making standardized health insurance contracts available to\nqualifying small employers as defined in this section. Such program is\ndesigned to encourage small employers to offer health insurance coverage\nto their employees.\n (b) Participation in the program established by this section and\nsection four thousand three hundred twenty-seven of this article is\nlimited to corporations or insurers organized or licensed under this\narticle or article forty-two of this chapter and health maintenance\norganizations issued a certificate of authority under article forty-four\nof the public health law or licensed under this article. Participation\nby all health maintenance organizations is mandatory, provided, however,\nthat such requirements shall not apply to a holder of a special purpose\ncertificate of authority issued pursuant to section four thousand four\nhundred three-a of the public health law or a health maintenance\norganization exclusively serving individuals enrolled pursuant to title\neleven of article five of the social services law, title eleven-D of\narticle five of the social services law, title one-A of article\ntwenty-five of the public health law or title eighteen of the federal\nSocial Security Act. On and after January first, two thousand one, all\nhealth maintenance organizations shall offer qualifying group health\ninsurance contracts as defined in this section. For the purposes of this\nsection and section four thousand three hundred twenty-seven of this\narticle, article forty-three corporations or article forty-two insurers\nwhich voluntarily participate in compliance with the requirements of\nthis program shall be eligible for reimbursement from the stop loss\nfunds created pursuant to section four thousand three hundred\ntwenty-seven of this article under the same terms and conditions as\nhealth maintenance organizations.\n (c) The following definitions shall be applicable to the insurance\ncontracts offered under the program established by this section:\n (1) (A) A qualifying small employer is an employer with:\n (i) not more than fifty employees;\n (ii) no group health insurance that provides benefits on an expense\nreimbursed or prepaid basis covering employees in effect during the\ntwelve month period prior to application for a qualifying group health\ninsurance contract under the program established by this section; and\n (iii) at least thirty percent of its employees receiving annual wages\nfrom the employer at a level equal to or less than thirty thousand\ndollars. The thirty thousand dollar figure shall be adjusted\nperiodically pursuant to subparagraph (D) of this paragraph.\n (B) The twelve month period set forth in item (ii) of subparagraph (A)\nof this paragraph may be adjusted by the superintendent from twelve\nmonths to eighteen months if he determines that the twelve month period\nis insufficient to prevent inappropriate substitution of qualifying\ngroup health insurance contracts for other health insurance contracts.\n (C) An employer shall cease to be a qualifying small employer if any\nhealth insurance that provides benefits on an expense reimbursed or\nprepaid basis covering an employer's employees, other than qualifying\ngroup health insurance purchased pursuant to this section, is purchased\nor otherwise takes effect subsequent to purchase of qualifying group\nhealth insurance under the program established by this section.\n (D) The wage levels utilized in subparagraph (A) of this paragraph\nshall be adjusted annually, beginning in two thousand two. The\nadjustment shall take effect on July first of each year. For July first,\ntwo thousand two, the adjustment shall be a percentage of the annual\nwage figure specified in subparagraph (A) of this paragraph. For\nsubsequent years, the adjustment shall be a percentage of the ann
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