Substitute House Bill No. 5621
          Substitute House Bill No. 5621

              PUBLIC ACT NO. 98-122


AN  ACT CONCERNING HEALTH INSURANCE FOR INDIVIDUAL
BUSINESS OWNERS.


    Be  it  enacted  by  the  Senate  and House of
Representatives in General Assembly convened:
    Section  38a-566  of  the  general statutes is
repealed and the following is substituted in  lieu
thereof:
    (a)  Any  individual or group health insurance
plan or any insurance arrangement shall be subject
to  the provisions of sections 12-201, AS AMENDED,
12-211, 12-212a and 38a-564 to 38a-572, inclusive,
if it provides health insurance or is an insurance
arrangement covering one or more  employees  of  a
small  employer  and  if  any one of the following
conditions are met:
    (1)  Any portion of the premium or benefits is
paid by a small employer or any covered individual
is reimbursed, whether through wage adjustments or
otherwise, by a small employer for any portion  of
the premium; or
    (2)  The  health insurance plan or arrangement
is treated by the employer or any of  the  covered
individuals  as  part of a plan or program for the
purposes of Section 162  or  Section  106  of  the
United States Internal Revenue Code.
    (b)   Nothing   in   this   section  shall  be
[interpreted] CONSTRUED to apply the provisions of
sections   12-202   and  12-212a  to  health  care
centers.
    (c)    Notwithstanding   the   provisions   of
subsection (a) of this section,  health  insurance
plans  or  insurance  arrangements issued to or in
accordance with a trust  established  pursuant  to
collective  bargaining,  subject  to  the  federal
Labor Management Relations Act and which cover, in
the  aggregate, more than twenty-five employees of
all participating employers, shall not be  subject
to   the   provisions   of   section   38a-567  or
subparagraph (A) of subdivision (2) of  subsection
(e)  of  section 38a-569 and insurers or insurance
arrangements issuing only such plans shall not  be
considered small employer carriers for purposes of
sections 38a-565 and 38a-568.
    (d)  A  small  employer  carrier  which ceases
marketing  to  small  employers  as  provided   in
subdivision  (6)  of  subsection  (b)  of  section
38a-565 may not cease enrolling new employers in a
policy  issued  to provide coverage to the members
of a trade association or to a trust on behalf  of
a  trade  association  if the following conditions
exist:
    (1)    Such    trade    association    is    a
not-for-profit trade association  qualified  under
26  USC Section 501c(6), was not formed solely for
the purpose of providing insurance  and  has  been
operating  continuously  for  at least twenty-five
years.
    (2)  The policy issued to or on behalf of such
association was in  existence  prior  to  June  1,
1990,   and  has  annual  premiums  of  less  than
twenty-five million dollars.
    (3)  Such  policy  is  offered on a guaranteed
issue basis to all small employer members and only
to members of such trade association.
    (e)  SUBSECTION  (a) OF THIS SECTION SHALL NOT
APPLY  TO  AN  INDIVIDUAL  HEALTH  INSURANCE  PLAN
ISSUED   TO  A  SELF-EMPLOYED  INDIVIDUAL  IF  THE
CARRIER DISCLOSES ON THE APPLICATION AND MARKETING
MATERIALS,  IN  NOT  LESS THAN TEN-POINT TYPE, THE
FOLLOWING NOTICE:  "THIS  PLAN  IS  ISSUED  ON  AN
INDIVIDUAL BASIS AND IS REGULATED AS AN INDIVIDUAL
HEALTH INSURANCE PLAN."

Approved May 27, 1998