OLR Bill Analysis

sHB 5172 (as amended by House “A”)*

AN ACT ESTABLISHING A CONNECTICUT CLEARINGHOUSE TO PROVIDE HEALTH INSURANCE INFORMATION TO INDIVIDUALS AND SMALL EMPLOYERS.

SUMMARY:

This bill establishes the Connecticut Clearinghouse, from which people and small employers (those with 50 and fewer employees) may get information about health insurance policies and health care plans available in Connecticut. These include Medicaid, HUSKY, state-administered general assistance (SAGA), Charter Oak, the Municipal Employee Health Insurance Plan (MEHIP), and any individual or small employer health insurance policies or health care plans an insurer, HMO, or other entity chooses to list with the clearinghouse.

It requires the Health Reinsurance Association (HRA) to (1) administer the clearinghouse and (2) in consultation with the insurance commissioner and healthcare advocate and within available appropriations, develop an interactive web site, telephone number, or other method for giving information on available plans that, based on a consumer's responses, may be appropriate for his or her circumstances.

The bill requires the commissioner to establish procedures for HRA to confirm with the Insurance Department that (1) a policy or plan listed with the clearinghouse is approved for sale in Connecticut and (2) the entity offering it is authorized to do business here. The procedures must require updating the list at least every 90 days.

*House Amendment “A” requires (1) consultation with the healthcare advocate for development of the clearinghouse and (2) the development to be done within available appropriations.

EFFECTIVE DATE: July 1, 2009

BACKGROUND

Health Reinsurance Association

The legislature created HRA to provide comprehensive health insurance to people who cannot obtain insurance from commercial insurers (i. e. , to serve as the high risk pool). By law, all Connecticut health insurers and HMOs are (1) HRA members and (2) assessed for its losses. HRA's board of directors is composed of nine individuals selected by the participating member companies.

HRA also serves as the state's acceptable alternative mechanism for complying with the guaranteed issue option in the individual market required under federal law (HIPAA). The law requires HRA to offer special health care plans to low-income individuals and certain small employers.

COMMITTEE ACTION

Insurance and Real Estate Committee

Joint Favorable Substitute