PA 09-123—sHB 5019

Insurance and Real Estate Committee

AN ACT PROHIBITING THE USE OF CERTAIN PRESCRIPTION DRUG HISTORY AS AN UNDERWRITING TOOL TO DENY INDIVIDUAL HEALTH INSURANCE COVERAGE

SUMMARY: This act prohibits insurers or other entities in the individual health insurance market from using as an underwriting factor a person's history of taking a prescription drug for anxiety for six months or less. But it allows them to use such history if it arises directly from a medical diagnosis of an underlying condition.

The act applies to each insurer, HMO, hospital or medical service corporation, and fraternal benefit society that delivers, issues, renews, amends, or continues an individual health insurance policy in Connecticut.

By law, an insurer or entity cannot move an insured person from a standard underwriting classification to a substandard one after the policy is issued or increase premiums because of the person's claim experience or health status. The law allows for a premium increase that applies to all people in an underwriting classification as a whole.

By law, an insurer, HMO, hospital or medical service corporation, or fraternal benefit society, or its officer or agent, that delivers or issues a policy in Connecticut that violates the act is subject to a fine of up to $10,000 for each offense. The insurance commissioner may also revoke the license of an out-of-state insurer or its agent for violating the act's provisions (CGS 38a-506).

EFFECTIVE DATE: January 1, 2010

OLR Tracking: JLK: KM: PF: TS