Legislative Agenda

2011 Session:

HB 6308: An Act Establishing the Connecticut Health Care Partnership

Purpose: This bill replaced HB 6305, An Act Concerning Implementation of the SustiNet Plan. The bill will work in conjunction with the federal Patient Protection and Affordable Care Act. It also allows non-state public employers, municipalities and qualified non-profits to pool into the state employee health insurance plan for greater efficiency and affordability. It calls for the creation of two new offices: the SustiNet Health Care Cabinet, which is charged with the tasks of promoting health initiatives and better appropriating health care dollars, and the Office of Health Reform and Innovation, which is charged with coordinating state and federal health care policies and supporting the Cabinet's work.

Importance: Passage of Phase I of SustiNet in 2009 laid the groundwork to ensure that a far greater number of Connecticut residents would receive quality health insurance. The implementation plan, Phase II of the SustiNet legislation, HB 6305, was replaced by HB 6308. The legislation that passed directs the state to explore offering the federally subsidized basic health plan (BPH), which could benefit many lower income Connecticut residents. It also directs the SustiNet Health Care Cabinet to produce a business plan for a non-profit, public health insurance option by October of 2012. Both of these features are significant because, in recent years, Connecticut's uninsured population has steadily risen. Alternatives to unaffordable and/or inadequate insurance plans must be made available. CEO is pleased with the long- time-coming "pooling" portion of the bill and other bill features, but will continue to advocate for an alternative to private health insurance.

Outcome: The bill became law without the governor's signature. The legislation allows non-state public employers, municipalities, and non-profits to join the state employee health plan.

SB 11: An Act Concerning the Rate Approval Process for Certain Health Insurance Policies

Purpose: Establishes procedures for a hearing for rate or amount filings made for certain insurance policies, agreements or contracts, to authorize the Healthcare Advocate or the Attorney General, or both, to be a party to any such hearing and to specify the amount of time the Insurance Department is required to retain certain records.

Importance: Even though the Affordable Care Act is bringing relief to people all over the country and providing affordable health care coverage to millions, insurance companies are still raising their rates and making health coverage unaffordable to many. The legislation is very important because the federal government has no power to block an insurance company increase, it is the state's insurance department that determines, in cases of individual plans or small group HMO plans, whether an increase is justified.

Outcome: The governor vetoed the bill and there was no veto override legislative session. However, Governor Malloy reached an agreement with the legislature and the insurance commmssioner. This agreement allows the Office of the Health Care Advocate (only)to request the commissioner to hold a hearing for rate increases of at least 15 percent or more on individual plans and small group HMO plans. Hearings are limited to up to four a year.

HB 6428: An Act Concerning State Financial Assistance and Employers that have Transferred Jobs Out of the State

Purpose: This bill would require an organization with 100 or more employees that receives financial assistance from a state agency and lays off, reassigns, or transfers out of state 50 or more employees, for the period during which the business organization receives such financial assistance, to repay the full amount of financial assistance, plus a penalty of 5%.

Importance: There was a $305.6 million revenue loss in FY 2009 from corporate business tax credits. Facing a huge budget deficit, Connecticut cannot afford to lose this precious revenue. For example, Aetna's CEO has been quoted in interviews saying that Connecticut's business climate was not a very good one and indicated it could affect their future workforce decisions. In 2009, insurance companies received $39,364,442 in tax credits which should be repaid if they choose to relocate or reassign workers.

Outcome: A public hearing was held March 1, 2011 but no vote was taken.

SB 44: An Act Concerning the Election of the Insurance Commissioner:

Purpose: To require that the insurance commissioner be an elected state official.

Importance: When an insurance commissioner is appointed, the commissioner answers to the governor. An elected commissioner answers to the public and would likely be more attuned to the needs of the consumer. This is important because the Connecticut Insurance Department, which the insurance commissioner heads, must answer claims to help return money owed to consumers due to denied and delayed payments.

Outcome: A public hearing was held March 7, 2011 but no vote was taken.

SB 921: An Act Establishing a State Health Insurance Exchange

Purpose: To reduce the number of individuals without health insurance in the state and assist individuals and small employers in obtaining health insurance by offering easily comparable and understandable information about health insurance options per the Pateint Protection and Affordable Care Act. The bill establishes a quasi-public agency, overseen by a board to develop and operate the exchange. It also establishes strong conflict of interest standards; i.e., appointed members cannot be employed by or serve as a consultant to an insurer, insurance broker, health care provider, health care facilities, or health or medical clinics.

Importance: By establishing strong conflict of interest standards, Connecticut can help lead the way in offering an exchange with a more balanced variety of plans to choose from that meet certain "selective criteria." Connecticut has joined with other New England states to participate in the federally funded Early Innovator Grant Project, the purpose of which is to create health insurance exchange information technology components that are consumer focused and that can be leveraged to operate states' health insurance exchanges.

Outcome: On July 1, 2011, Governor Malloy signed this legislation establishing the state health insurance exchange, now known as Public Act 11-53.