Legislative Agenda

2010 Session: CEO's Legislative Report

HB 5303: An Act Requiring Reporting of Certain Health Insurance Claims Data

Purpose: To require managed care organizations to report claims denial data and to require the Insurance Department to include such data in the consumer report card and to post such data on its Internet web site.

Importance: Passage of this bill is a tremendous victory for Connecticut because we are only the second state in the country to require insurance companies to disclose their denial rates. Prior to passage of the bill, California was the only state that had such a requirement. The data must include the number of claims received, claims denied, denials that were appealed and denials that were reversed on appeal. The data must also include the reasons for the denials, the number and percentage of times each reason was used and other information the commissioner deems necessary.

Outcome: The Governor signed the bill on May 5, 2010.

SB 485: An Act Concerning Tax Fairness

Purpose: To enhance the equity and effectiveness of the corporation business tax by instituting a combined unitary tax.

Importance: The bill would have required member companies of corporate groups paying Connecticut corporation taxes to determine corporation tax liability based on the net income and capital base of the entire group. This would have resulted in a potential General Fund revenue gain of up to $88 million annually beginning in FY 11. Twenty three states have already adopted combined reporting. By requiring corporations to add their profits together, states utilizing combined reporting do not allow large multi-state corporations to move profits out of the states in which they are earned and into states in which they will be taxed at lower rates or not at all.

Outcome: Passed Finance Committee; never acted on by House or Senate.

HB 5465: An Act Concerning the Development of Green Jobs

Purpose: To implement the recommendations of the speaker of the House of Representative's Green Jobs Working Group.

Importance: This legislation would have established a Green Jobs Advisory Board which would have provided guidance on establishing and creating the demand for green jobs. The bill would have required the Department of Public Utility Control to review the current renewable portfolio standard to determine what percentage of power is being purchased from renewable sources. The bill would have also allowed the Clean Energy Fund to fund transportation projects such as supporting plug-in hybrid vehicles and workforce development.

Outcome: Passed 3 committees; never acted on by House or Senate

SB 194: An Act Concerning Rate Approvals for Certain Health Insurance Policies

Purpose: To establish procedures for a hearing prior to any rate approval for individual health insurance policies, 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. SB 194 was attached as an amendment to HB 5090, a bill regulating third party administrators and rate approvals for certain health insurance policies.

Importance: It is very unfortunate that this legislation was not voted on by the Senate. In 2010, health insurance premiums for individual medical plans in Connecticut increased in price by an average of more than 20 percent. This bill would have increased the oversight and transparency of insurance companies.

Outcome: HB 5090 passed as amended in the House; never acted on in the Senate