File No. 269

Senate, March 31, 2008

The Committee on Insurance and Real Estate reported through SEN. CRISCO of the 17th Dist., Chairperson of the Committee on the part of the Senate, that the substitute bill ought to pass.

AN ACT CONCERNING MEDICAL LOSS RATIOS.

Be it enacted by the Senate and House of Representatives in General Assembly convened:

Section 1. (Effective from passage) (a) There is established a task force to study the medical loss ratios of health insurance plans delivered, issued for delivery, renewed, amended or continued in this state. Such study shall include, but not be limited to, analysis of the factors that affect such loss ratios and assessment of the impact of setting loss ratio thresholds, and shall consider both private and public organizations' health plans in such study.

(b) The task force shall consist of the following members:

(1) Two appointed by the speaker of the House of Representatives;

(2) Two appointed by the president pro tempore of the Senate;

(3) One appointed by the majority leader of the House of Representatives;

(4) One appointed by the majority leader of the Senate;

(5) One appointed by the minority leader of the House of Representatives;

(6) One appointed by the minority leader of the Senate;

(7) The Insurance Commissioner or the commissioner's designee; and

(8) Two representatives from the insurance industry appointed by the chairpersons of the task force.

(c) Any member of the task force appointed under subdivision (1), (2), (3), (4), (5) or (6) of subsection (b) of this section may be a member of the General Assembly.

(d) All appointments to the task force shall be made not later than thirty days after the effective date of this section. Any vacancy shall be filled by the appointing authority.

(e) The speaker of the House of Representatives and the president pro tempore of the Senate shall select the chairpersons of the task force, from among the members of the task force. Such chairpersons shall schedule the first meeting of the task force, which shall be held not later than sixty days after the effective date of this section.

(f) The administrative staff of the joint standing committee of the General Assembly having cognizance of matters relating to insurance and real estate shall serve as administrative staff of the task force.

(g) Not later than December 31, 2008, the task force shall submit a report on its findings and recommendations to the joint standing committee of the General Assembly having cognizance of matters relating to insurance and real estate, in accordance with the provisions of section 11-4a of the general statutes. The task force shall terminate on the date that it submits such report or January 1, 2009, whichever is later.

The following fiscal impact statement and bill analysis are prepared for the benefit of members of the General Assembly, solely for the purpose of information, summarization, and explanation, and do not represent the intent of the General Assembly or either chamber thereof for any purpose:

OFA Fiscal Note

State Impact:

Note: GF=General Fund

Municipal Impact: None

Explanation

The bill establishes a task force to study the medical loss ratios of health insurance plans in Connecticut. The task force must report its findings and recommendations to the Insurance and Real Estate Committee by December 31, 2008.

The bill permits members of the General Assembly to participate on the task force, and requires the staff of the Insurance and Real Estate Committee to provide administrative assistance. The Office of Legislative Management would incur minimal costs associated with mileage reimbursement of 50.5 cents per mile for legislators participating on the task force.



OLR Bill Analysis

sSB 491

AN ACT CONCERNING MEDICAL LOSS RATIOS.

SUMMARY:

The Office of Legislative Research does not analyze Special Acts.

COMMITTEE ACTION

Insurance and Real Estate Committee

Joint Favorable Substitute