OFFICE OF FISCAL ANALYSIS

Legislative Office Building, Room 5200

Hartford, CT 06106 (860) 240-0200

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

sSB-586

AN ACT EXPANDING MANDATED HEALTH BENEFITS FOR WOMEN, CHILDREN AND ADOLESCENTS.


OFA Fiscal Note

State Impact: None

Municipal Impact:

Municipalities

Effect

FY 18 $

FY 19 $

Various Municipalities

Potential Cost

See Below

See Below

Explanation

The bill is not anticipated to result in a cost to the state employee and retiree health plan or fully-insured, non-grandfathered municipal plans to comply with the coverage provisions in the bill. These plans provide coverage for the services specified in the bill pursuant to state or federal law. The only exception is with regards to prohibiting step therapy for contraceptives for certain municipal plans. There may be a cost to fully-insured municipal plans (both non-grandfathered and grandfathered) which require step therapy. The cost will depend on the cost of the drugs used under step therapy as opposed to those prescribed without step therapy.

The bill may result in a cost to certain fully-insured grandfathered plans which do not currently provide coverage for those services required by the federal Affordable Care Act but not mandated by state law, such as breast feeding supplies. The coverage requirements will result in increased premium costs when municipalities enter into new health insurance contracts after January 1, 2018.

Pursuant to federal law, self-insured health plans are exempt from state health mandates.

The Out Years

The annualized potential fiscal impact identified above will continue in the future and will be reflected in future health premiums.