STATE OF NEW YORK
September 20, 2002
GOVERNOR SIGNS SOLE PROPRIETOR HEALTH INSURANCE BILL INTO LAW
Makes Affordable Small Business Group Health Insurance Available to Sole Proprietors
Governor George E. Pataki today signed into law a bill that will make more affordable health insurance available to small businesses run across New York State that are owned and operated by single-person businesses.
The new law, which was signed by the Governor at the Business Council of the State of New Yorks 2002 Annual Meeting, creates a new premium rate for sole proprietors that is significantly lower than the individual rates they were previously paying.
"From cutting taxes, to reducing workers compensation costs, to eliminating and reforming thousands of burdensome regulations, weve launched a comprehensive effort to keep New Yorks small businesses as strong as possible -- but were committed to doing even more," Governor Pataki said. "This new law will help to ensure that thousands of small business owners across the State -- and their families -- will have access to the quality, affordable health care they need and deserve."
"Weve worked hard to expand access to quality health care for all New Yorkers, and this new law will make affordable health insurance available to more than 250,000 people by giving sole proprietors access to the same coverage as other businesses," the Governor said. "At the same time, it will provide entrepreneurs and the smallest of businesses with another tool they need to succeed. Properly nurtured, these businesses have the potential to become great engines of economic growth and job creation."
The legislation approved by the Governor amends the insurance law and requires health insurers that offer group coverage through New York's chambers of commerce or association groups to provide the same policies to sole proprietors. Under the new law, the rate charged to sole proprietors must be within 20 percent of small group rates. Such rates will be much less expensive than the premiums for individuals now paid by many sole proprietors.
Senator James L. Seward, Chairman of the Senate Insurance Committee said, "This is about helping small business owners get health insurance -- and ultimately, health care -- for their families. The cost of health insurance is a huge financial burden for sole proprietors, like accountants, barbers or contractors, and the bill signed by Governor Pataki will make health insurance more available at a better rate. I applaud the Governor for signing the measure into law and for demonstrating once again his concern that New Yorkers have affordable health insurance."
Beth Coleman, President of the Greater Southern Dutchess Chamber of Commerce and Chair of the Chamber Alliance of New York State said, "New Yorks chambers of commerce deeply appreciate the leadership of Governor Pataki and the commitment of the State Legislature in addressing this critical issue. Sole proprietors, New Yorks smallest businesses, have for many years struggled to find affordable health insurance. This law will significantly ease that burden by enabling sole proprietors to find more affordable insurance through chambers and other business groups."
State Insurance Superintendent Gregory V. Serio said, "This is a great victory for New Yorks small businesses. For some time many insurance carriers had not offered sole proprietors access to group health insurance -- forcing these entrepreneurs into the much more expensive individual market for their coverage. Now sole proprietors will be able to access the same quality health insurance as other small businesses. Growing up in the family of a sole proprietor, I am personally gratified to see this bill signed into law."
Since 1995, New York State has undertaken a comprehensive series of measures to ensure that the States more than 1.1 million small businesses remain strong and competitive. Specific initiatives include:
The success of New Yorks comprehensive efforts to promote job creation and economic growth -- and to strengthen the competitiveness of businesses of all sizes -- has been affirmed by several recent independent reports: