The New York State Insurance Department is preparing to transfer $71 million in surplus funds from market stabilization pools to holders of individual and family health maintenance organization coverage.
New York, which requires HMOs and point-of-service plans to offer individual and family coverage on a guaranteed issue, community-rating basis, has been running the funds in an effort to compensate HMOs and POS plans for variations in the health of their insureds.
The state is trying to move to a new adjustment mechanism, and participating carriers have contributed more cash than the pools need, New York officials says.