Legislative Office Building, Room 5200

Hartford, CT 06106 (860) 240-0200

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LCO No.: 5940

File Copy No.: 221

Senate Calendar No.: 165

OFA Fiscal Note

State Impact:

Agency Affected


FY 12 $

FY 13 $

Comptroller Misc. Accounts (Fringe Benefits)

GF &TF - Cost



Note: GF=General Fund and TF = Transportation Fund

Municipal Impact:



FY 12 $

FY 13 $

Various Municipalities





As of July 1, 2010, the State Employees' Health plan went self-insured. Pursuant to current federal law, self-insured health plans are exempt from state health mandates, however in previous self funded arrangements the state has traditionally adopted all state mandates. To the extent the state continues this practice of voluntary mandate adoption, the following impacts are anticipated.

The amendment prohibits insurers from imposing any cost-sharing for breast ultrasound screenings. It is estimated the state's cost will increase on average $55 for each out-of-network breast ultrasound, as a result of eliminating out-of-pocket expenses, including copayments and deductibles for breast ultrasound screening. The increased cost is attributable to covering the copay of breast ultrasound screenings for those individuals who use out-of-network providers1.

The amendment's provisions may increase costs to certain fully insured municipal plans which include copayments for breast ultrasound screening. The coverage requirements may result in increased premium costs when municipalities enter into new health insurance contracts after January 1, 2012. Due to current federal law, municipalities with self-insured plans are exempt from state health insurance mandates.

The state employee health plan and many municipal health plans are recognized as “grandfathered” health plans under the Patient Protection and Affordable Care Act (PPACA) 2. It is unclear what effect the adoption of certain health mandates will have on the grandfathered status of the state employee health plan or grandfathered municipal plans PPACA3.

The Out Years

The annualized ongoing fiscal impact identified above would continue into the future subject to inflation.

The federal health care reform act requires that, effective January 1, 2014, all states must establish a health benefit exchange, which will offer qualified plans that must include a federally defined essential benefits package.  While states are allowed to mandate benefits in excess of the basic package, the federal law appears to require the state to pay the cost of any such additional mandated benefits.  The extent of these costs will depend on the mandates included in the federal essential benefit package, which have not yet been determined.  Neither the agency nor mechanism for the state to pay these costs has been established.

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.

1 Breast ultrasound screenings can range from $250-$300. (University of Connecticut, (2010) . Connecticut Mandate Health Insurance Benefits Review; Vol. 2, Ch. 1, p. 40.)

2 Grandfathered plans include most group insurance plans and some individual health plans created or purchased on or before March 23, 2010. Pursuant to the PPACA, all health plans, including those with grandfathered status are required to provide the following as of September 23, 2010: 1) No lifetime limits on coverage, 2) No rescissions of coverage when individual gets sick or has previously made an unintentional error on an application, and 3) Extension of parents' coverage to young adults until age 26. (

3 According to the PPACA, compared to the plans' policies as of March 23, 2010, grandfathered plans who make any of the following changes within a certain margin may lose their grandfathered status: 1) Significantly cut or reduce benefits, 2) Raise co-insurance charges, 3) Significantly raise co-payment charges, 4) Significantly raise deductibles, 5) Significantly lower employer contributions, and 5) Add or tighten annual limits on what insurer pays. (