Planning and Development Committee

JOINT FAVORABLE REPORT

Bill No.:

HB-6221

Title:

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

Vote Date:

3/24/2017

Vote Action:

Joint Favorable

PH Date:

2/22/2017

File No.:

544

SPONSORS OF BILL:

Representative Stephanie E. Cummings, 74th Dist.

REASONS FOR BILL:

This bill would allow municipalities with self-insured health plans to recover the cost of collateral source payments made to employees in the event of a settled non-work related personal injury or wrongful death case. These funds would be recouped as a matter of course following a judicial settlement. Under current statute courts are prohibited from reducing an award based upon the collateral payments being received.

This bill would allow 36 municipalities around the state with self-insured health plans to recover the cost of these payments.

RESPONSE FROM ADMINISTRATION/AGENCY:

None Expressed

NATURE AND SOURCES OF SUPPORT:

Representative Stephanie Cummings:

Stated in spoken testimony that

[This bill is intended to help cities struggling financially to recoup funds that they have paid out of their self-insured funds when municipal employees are involved in out of work accidents, and thereafter, recover in a legal settlement. The design of this bill would not harm any of those municipal employees, as when their legal settlement is being negotiated, they would look to see what the paybacks to the city would be and determining what their out of pocket amount is going to be.]

Linda Wihbey, City of Waterbury Office of the Corporation Counsel:

The City of Waterbury submitted testimony in favor of HB 6221. They stat that the bill would permit a self-insured municipality, such as Waterbury, to recover health benefits paid. They stated that this is consistent commercial insurance carriers under federal law and authorized under the CT Worker's Compensation Act. Waterbury's third party health benefits administrator indicate that potential recovery of 1% of the City's annual paid medical benefits, roughly $1,000,000 is not collected as a result of the absence of authorizing state legislation.

NATURE AND SOURCES OF OPPOSITION:

None Expressed

Reported by: Wade Packer

Date: 4/13/17