AN ACT CONCERNING THE RATE APPROVAL PROCESS FOR CERTAIN HEALTH INSURANCE POLICIES.

OFFICE OF FISCAL ANALYSIS

Legislative Office Building, Room 5200

Hartford, CT 06106 ↓ (860) 240-0200

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sSB-11

AN ACT CONCERNING THE RATE APPROVAL PROCESS FOR CERTAIN HEALTH INSURANCE POLICIES.

AMENDMENT

LCO No.: 8175

File Copy No.: 203

Senate Calendar No.: 157

Agency Affected	Fund-Effect	FY 12 $	FY 13 $
Insurance Department	IF - Reduces Cost in Bill	See Below	See Below

Note: IF=Insurance Fund

Municipal Impact: None

Explanation

The amendment reduces the costs identified in the underlying bill ($2.25 million annually) to approximately $1 million annually.

Assuming 30 additional rate reviews and up to 60 additional rate hearings, there will be an annualized cost of up to $1 million to the Department of Insurance (DOI) for personnel, fringe benefits and other expenses to conduct actuarial rate reviews and rate hearings. These figures are based on the number of qualifying rate requests over the past two years. However, a hearing must be requested by the Office of the Healthcare Advocate or the Attorney General. It is not known how many hearings would be requested. If hearings are not requested on all qualifying rate requests, the annualized cost would be less than the $1 million indicated above.

The preceding Fiscal Impact statement is prepared for the benefit of the members of the General Assembly, solely for the purposes of information, summarization and explanation and does not represent the intent of the General Assembly or either chamber thereof for any purpose. In general, fiscal impacts are based upon a variety of informational sources, including the analyst's professional knowledge. Whenever applicable, agency data is consulted as part of the analysis, however final products do not necessarily reflect an assessment from any specific department.