OLR Bill Analysis

SB 924

AN ACT REQUIRING THAT HEALTH CARRIERS USING THE CONNECTICUT HEALTH INSURANCE EXCHANGE PAY A MINIMUM COMMISSION TO CERTAIN INSURANCE PRODUCERS.

SUMMARY

This bill requires a health carrier (e.g., insurer or HMO) that delivers, issues, renews, amends, or continues qualified health plans through the Connecticut Health Insurance Exchange (i.e., Access Health CT) to pay a reasonable commission to a licensed insurance producer who helps an individual or small employer evaluate and select such a plan.

The bill requires the exchange to establish (1) the commissions a carrier will pay and (2) a complaint system for resolving insurance producers' complaints that a carrier is not paying commissions as required. The exchange must maintain records of any written complaints received from producers. The bill authorizes the insurance commissioner to examine the exchange's complaint and recordkeeping systems and if she determines they are inadequate, issue regulations requiring the exchange to revise the systems.

The bill requires the exchange's chief executive officer to give the commissioner the name of any carrier failing to pay reasonable commissions as required. It gives the commissioner the power to enforce the requirement. Under the bill, any carrier aggrieved by her order or decision may appeal to her and request a hearing. Further orders and decisions may be appealed to Superior Court.

EFFECTIVE DATE: January 1, 2018

BACKGROUND

Access Health CT Resolutions

At its January 26, 2017 board of directors' special meeting, Access Health CT's board passed two resolutions requiring carriers that offer plans through the exchange to pay a commission to an insurance producer who helps consumers enroll in a qualified health plan. The commission must be the same dollar amount as that paid to producers who help consumers enroll in plans sold off the exchange. The resolutions are effective beginning for plans sold in 2018.

COMMITTEE ACTION

Insurance and Real Estate Committee

Joint Favorable

Yea

19

Nay

0

(03/09/2017)