OFFICE OF FISCAL ANALYSIS

Legislative Office Building, Room 5200

Hartford, CT 06106 (860) 240-0200

http://www.cga.ct.gov/ofa

HB-6221

AN ACT CONCERNING RECOVERY OF PAYMENTS FROM COLLATERAL SOURCES BY A MUNICIPALITY WITH A SELF-INSURED HEALTH PLAN.


OFA Fiscal Note

State Impact: None

Municipal Impact:

Municipalities

Effect

FY 18 $

FY 19 $

Various Municipalities

Potential Revenue Gain

See Below

See Below

Explanation

The bill will result in revenue to self-insured municipalities to the extent that they are allowed to recover through subrogation any medical costs incurred on behalf of an injured employee or the employee's dependents from the proceeds of a settlement. The bill is anticipated to result in a revenue gain as opposed to a savings, as any recovery is assumed to be a refund of expenditures already paid. Under current law self-insured health plans are not allowed to recover through subrogation any medical costs out of the proceeds of a settlement. The revenue gain will depend on the amount recovered.

The Out Years

The annualized ongoing fiscal impact identified above would continue subject to future recoveries.