New York Governor George Pataki 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 York’s 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, we’ve launched a comprehensive effort to keep New York’s small businesses as strong as possible—but we’re committed to doing even more,” 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.
“We’ve 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. 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 reportedly be much less expensive than the premiums for individuals now paid by many sole proprietors.
Senator James Seward, Chairman of the Senate Insurance Committee added, “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.”
“This is a great victory for New York’s small businesses,” State Insurance Superintendent Gregory Serio added. “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.”
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