April 1, 2011
INSURANCE AND REAL ESTATE COMMITTEE BILLS FAVORABLY REPORTED TO THE FINANCE, REVENUE AND BONDING COMMITTEE
By: Janet L. Kaminski Leduc, Senior Legislative Attorney
The Insurance and Real Estate Committee reported two bills to the Government Administration and Elections Committee, which reported them to the Finance, Revenue and Bonding Committee. This report provides a brief summary of those two bills.
SB 921, An Act Establishing a State Health Insurance Exchange
This bill establishes the Connecticut Health Insurance Exchange as a quasi-public agency to satisfy requirements of the federal 2010 Patient Protection and Affordable Care Act (PPACA). Under the bill, a 14-member board manages the exchange, including operating an online marketplace where individuals and small employers (i.e., an employer with up to 50 employees) will be able to compare and purchase health insurance plans beginning in 2014. The bill outlines the board's powers and duties.
By law, quasi-public agencies have bonding authority. The bill also specifically permits the exchange to issue, fund, or refund bonds, bond anticipation notes, and other obligations of the exchange for any of its corporate purposes; provide for the holders' rights; and secure the same by pledging revenue, notes, and mortgages of others.
EFFECTIVE DATE: Upon passage
HB 6323, An Act Making Conforming Changes to the Insurance Statutes Pursuant to the Federal Patient Protection and Affordable Care Act, and Establishing a State Health Partnership Program.
This bill establishes the Connecticut Health Partnership Exchange as a quasi-public agency to satisfy requirements of the PPACA. Under the bill, an 11-member board of directors manages the exchange, including an online marketplace where individuals and small employers will be able to compare and purchase health insurance plans beginning in 2014. The bill outlines the board's powers and duties and prohibits insurers or health care providers from serving on the board. The bill subjects the exchange to the Freedom of Information Act, with limited exceptions. (By law, quasi-public agencies have bonding authority.)
The bill also makes changes in various health insurance statutes to bring them into conformance with the PPACA. The changes relate to covering dependent children under health care policies to age 26, barring coverage denial for children under age 19 due to a preexisting condition, eliminating lifetime maximums, prohibiting rescissions except in cases of fraud and intentional material misrepresentation, and changing the definition of medical loss ratio.
EFFECTIVE DATE: Upon passage, except for the provision redefining “medical loss ratio,” which is effective January 1, 2012.