A New York senator has filed legislation to protect patients from what he calls “absolutely disgraceful” behavior by insurance providers.

Eric T. Schneiderman

Sen. Eric T. Schneiderman (D-Manhattan/Bronx) has filed “Ian’s Law” (S 6263), making it illegal for insurers to drop entire classes of insurance as a pretext to denying coverage and requiring insurers to get prior approval from state regulators before discontinuing a class of insurance.

The proposed legislation would also expand to 18 months the minimum length of time that an insurer must ensure that policyholders with total disabilities receive continued coverage after losing their policy due to the statewide cancellation of an entire class of policies.

The bill is named after Ian Pearl, 37, who has muscular dystrophy. Pearl lost his insurance when Guardian terminated the entire class of policies in New York that covered Ian and others, according to Schneiderman’s office. Pearl is ventilator-dependent and relies on a skilled nursing benefit in his policy to receive care to keep him alive.

The Pearl family challenged Guardian’s decision in court, claiming the termination was to get around New York law prohibiting an insurer from dropping the policy of an individual simply because he or she needs care. The insurer, which denied any wrongdoing, has since settled with the Pearls and restored Ian’s coverage.

Schneiderman, who chairs the New York Senate Codes Committee, called terminating an insurance policy line in order to drop coverage for those who need it most “not only absolutely disgraceful – it’s a matter of life and death.

“This bill holds the insurance industry accountable and protects patients like Ian – and other individuals who have paid for insurance coverage – from being thrown off when they get sick,” he said in a statement.

Pearl applauded Schneiderman and Sen. Neil Breslin (D-Albany Co.), a co-sponsor of the bill, for their work and added he was “honored” the bill bears his name.

“Dropping an individual policyholder due to their claims experience or medical history is already illegal; therefore the same should be true for dropping an entire group of people based on the history of any particular individual,” Breslin added. “I am proud to join Sen. Schneiderman in this major step toward real insurance reform in New York.”