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Bill

Bill

A 6305

Creates the health insurance guaranty fund

2025 Regular Session Introduced by Michael Benedetto and 15 co-sponsors

Bill A 6305 creates a Health Insurance Guaranty Fund to protect policyholders from losing access to care if their insurer becomes insolvent, ensuring financial security.

REFERRED TO INSURANCE
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WeVote Research Nonpartisan
Bill Summary · A 6305

Summary of Bill A 6305: Health Insurance Guaranty Fund

Purpose and Intent

Bill A 6305 aims to establish a Health Insurance Guaranty Fund to protect policyholders in the event that their health insurance provider becomes insolvent. The fund is designed to ensure that individuals and families maintain access to necessary health care services without interruption, even if their insurance company fails.

Key Provisions

  • Creation of the Fund: The bill proposes the establishment of a dedicated fund that will be used to cover claims made by policyholders of insolvent health insurance companies.
  • Funding Mechanism: The fund will be financed through assessments on health insurance companies operating within the state. The specific assessment rates and the total amount to be collected will be determined by the state insurance department.
  • Claim Payments: The fund will provide payments to policyholders for covered claims up to a specified limit, ensuring that individuals can receive necessary medical care without facing financial hardship due to insurance company insolvency.
  • Oversight and Administration: The bill outlines the responsibilities of the state insurance department in managing the fund, including the establishment of rules and regulations for its operation.

Affected Parties

  • Policyholders: Individuals and families who hold health insurance policies will benefit from the security provided by the guaranty fund, as it will protect them from the financial fallout of an insurance company’s failure.
  • Insurance Companies: Health insurance providers will be subject to assessments to fund the guaranty, which may impact their operational costs and pricing strategies.
  • State Insurance Department: This agency will have increased responsibilities in overseeing the fund and ensuring compliance with the regulations set forth in the bill.

Procedural Aspects

  • Introduced Date: The bill was introduced on March 03, 2025.
  • Current Status: As of now, the bill has been referred to the Insurance Committee for further consideration. This is an important step in the legislative process, as the committee will review the bill, hold hearings, and make recommendations for amendments or approval.

Related Legislation

Bill A 6305 is part of a broader legislative context, with several related bills from prior sessions, including:
- A 9311
- A 4328
- A 2910
- A 912
- A 7153

These related bills may address similar issues or provide additional context regarding health insurance regulation and consumer protection.

Conclusion

Bill A 6305 represents a proactive approach to safeguarding health insurance policyholders in the event of company insolvency. By establishing a Health Insurance Guaranty Fund, the bill seeks to enhance consumer confidence in the health insurance market and ensure continued access to essential health services. The ongoing legislative process will determine the final structure and provisions of the fund.

Compiled from official sources — confirm details with the bill’s official record.

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