REPORT ON BILLS FAVORABLY REPORTED BY COMMITTEE

TITLE OF BILL:

AN ACT MAKING REVISIONS TO THE INSURANCE STATUTES.

SPONSORS OF BILL:

REASONS FOR BILL:

SB-554 makes minor technical clarifications in the insurance statues. Revisions provide for an extension of time by which the Insurance Department must render decisions on a contested case hearing. This addition was suggested as receipt of transcripts did not allow for sufficient time to make a sound and fair judgment. Also, the bill provides for access to an external appeal process for those covered by self-funded governmental plans, a process lost in a technical revision error during the 2005 session.

Proposed Substitute LCO No. 3396 “healing arts” for “medical arts” as the latter is defined in the General Statues. Also the bill would extend the timeframes from 20 to 30 days for holding a hearing with a decision to be rendered within 45 days, not 15 days, after the due date of the filing of briefs.

RESPONSE FROM ADMINISTRATION/AGENCY:

Susan F. Cogswell, Insurance Commissioner, State of Connecticut Insurance Department, testified in support of SB-554 which makes technical changes to the insurance statutes. In testimony, the Commissioner suggested revising the length of time decisions must be made on contested case hearings.

NATURE AND SOURCES OF SUPPORT:

Christine Cappiello, Anthem Blue Cross and Blue Shield, submitted written testimony in support of SB-554. Ms. Cappiello stated access to an external review process is fundamental and benefits the plan and the member, and is a process SB-554 provides for self-insured governmental plans.

NATURE AND SOURCES OF OPPOSITION:

Bob Kehmna, Insurance Association of Connecticut (IAC), testified that with suggested revisions made to SB-554, IAC would have no opposition. Mr. Kehmna requested changes in particular subsections that would narrow the Commissioner's “overly broad” supervisory authority where adequate authority is already given.