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H 7858Health Insurance

Insurance - Accident and Sickness Insurance Policies

Insurers providing short-term disability coverage to Rhode Island state employees cannot deny or limit benefits based on the employee's age.

Held for study
Population
Affected
15
Email Legislator
Introduced Feb 27, 2026Committee House Corporations

Plain-English Summary

This legislation mandates that any insurance company submitting a bid or contract to provide short-term disability insurance to Rhode Island state employees must offer such coverage without discrimination based on age. It specifically requires that coverage be made available to all eligible active state employees, including those seventy years of age or older. Insurers are prohibited from excluding employees, terminating coverage, or creating different eligibility standards solely because of an employee's age. This rule applies exclusively to policies issued to the State of Rhode Island.

For younger readers

This bill creates a new rule for insurance companies that work with the state government. Sometimes, workers get special insurance that pays them money if they get sick or hurt and cannot work for a short time. This bill says that insurance companies cannot refuse to give this protection to workers just because they are older. Even if a worker is over 70 years old, if they are still doing their job for the state, they must be allowed to have this insurance just like younger workers.

Who & Where It Applies

Impacted groups
State Employees (specifically those over 70)Insurance CompaniesState of Rhode Island (as employer)Taxpayers
Impacted communities
All

Constitutional & Fiscal Check

None Likely

Estimated cost
Amount unknown
Estimated revenue
None

Bill Analysis

Both viewpoints
For Progressives
  • Promotes workplace equity by ensuring that older workers are not discriminated against regarding benefits solely due to their age.
  • Strengthens the social safety net for aging employees who choose or need to remain in the workforce, ensuring they have financial protection against short-term disability.
  • Sets a positive example for employment standards by mandating that the state government, as an employer, provides inclusive benefits to all staff regardless of age.
  • The scope of the bill is limited to state employees only, leaving older workers in the private sector without similar statutory protections for disability insurance.
  • Relies on private market insurance carriers to provide the benefit rather than creating a universal public disability guarantee.
  • Does not address potential cost barriers if insurers raise premiums significantly to cover the older demographic, which could still make the insurance effectively inaccessible if employees pay a share.
For Conservatives
  • Encourages self-sufficiency by supporting older individuals who wish to remain in the workforce and contribute to the economy rather than retiring.
  • Prevents reliance on state welfare or other public assistance programs by ensuring older workers have private insurance coverage in the event of a temporary disability.
  • Clarifies the terms of government contracts, ensuring that vendors (insurers) understand the specific requirements for doing business with the state.
  • Interferes with the free market by preventing insurance companies from assessing risk and setting eligibility based on actuarial data regarding age and health.
  • Likely increases costs to the taxpayer, as insurance companies will raise premiums to account for the higher risk associated with covering older employees, and the state pays for these benefits.
  • Expands government regulation over private businesses by dictating the specific terms and conditions under which they must offer their products.

Votes

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Full Bill Text

Changes to existing Rhode Island law · 19 additions

SECTION 1. Chapter 27-18 of the General Laws entitled "Accident and Sickness Insurance Policies" is hereby amended by adding thereto the following section: 27-18-96. Disability income insurance coverage for state employees -- Age nondiscrimination.

(a) Any insurer, health maintenance organization, or other entity authorized to issue disability income insurance or short-term disability insurance in this state that submits a bid, proposal, or contract to provide short-term disability insurance coverage to employees of the State of Rhode Island shall offer such coverage on a nondiscriminatory basis with respect to age.

(b) Coverage offered pursuant to subsection (a) of this section shall be made available to all eligible state employees actively employed by the state, regardless of age, including employees seventy (70) years of age or older.

(c) No policy, contract, certificate, rider, or plan document issued pursuant to this section shall:

(1) Exclude an otherwise eligible employee solely on the basis of age;

(2) Terminate coverage solely due to the attainment of a specified age; or

(3) Impose different eligibility standards based solely on age.

(d) Nothing in this section shall be construed to require coverage for an employee who is not otherwise actively employed or eligible under the terms of employment established by the state.

(e) The provisions of this section shall apply only to disability income or short-term disability insurance policies issued or renewed pursuant to a bid, contract, or agreement with the State of Rhode Island.

SECTION 2. This act shall take effect on January 1, 2027.