N.Y. Ins. Law § 4701

§ 4701. Legislative findings. (a) Cooperative health risk-sharing\nagreements allow public entities to: share, in whole or part, the costs\nof self-funding employee health benefit plans; provide municipal\ncorporations, school districts and other public employers with an\nalternative approach to stabilize health claim costs; lower per unit\nadministration costs; and enhance negotiating power with health\nproviders by spreading such costs among a larger pool of risks.\n (b) Appropriate safeguards are necessary to help keep self-funded\nmunicipal cooperative health benefits plans from exposing municipalities\nand their taxpayers to unpredictable and potentially catastrophic\nliabilities. Minimum standards regarding benefits and participation can\nbetter assure that self-funded municipal cooperative health benefit\nplans will continue to act responsibly and provide coverage for\nhigh-cost conditions and high-cost individuals.\n (c) It is the policy of this state to expand the alternatives\navailable to public employers by permitting the development of municipal\ncooperative health benefit plans while, at the same time, establishing\nappropriate standards designed to promote fair competition and sound\noperation of such plans on an ongoing basis.\n (d) It is the legislative intent that the superintendent implement a\nworkable system of authorization and regulation of municipal cooperative\nhealth benefit plans in this state, in order to assure that such plans\nare:\n (1) operated on an actuarially sound basis with appropriate financial\nand other standards to protect plan participants and their beneficiaries\nas well as local taxpayers; and\n (2) not unduly disruptive of the regulated insurance market and public\nhealth programs.\n