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.

AMENDMENT

LCO No.: 7826

File Copy No.: 544

House Calendar No.: 359


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 amendment strikes the underlying bill and its associated fiscal impact.

The amendment will result in revenue to self-insured municipalities to the extent that they are able to recover any medical costs incurred on behalf of an injured employee and their covered dependents, from the municipality's self-insured policy. The amendment 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. The revenue gain will depend on the amount recovered.

The amendment expressly limits the recovery to expenses paid directly from the municipality's own revenue. The municipality is prohibited from recovering for expenses incurred by an insurer who may provide stop-loss coverage for the municipality's self-insured policy. Under the terms of the amendment, a municipality is not entitled to recover from a tortfeasor for amounts equal to or less than $15,000.

The amount a municipality can recover is limited by the following: (1) any percentage of comparative negligence (fault) attributed to the employee, (2) the percentage ratio that the employee's legal fees and costs are relative to the total judgement or settlement, and (3) any amounts recovered cannot result in an untoward windfall to the municipality. In addition, the amendment requires the municipality to comply with the notice provisions of the amendment in order for the municipality to be able to have a lien against any recovery from the tortfeasor.

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.