OLR Bill Analysis

sHB 5019

AN ACT PROHIBITING THE USE OF CERTAIN PRESCRIPTION DRUG HISTORY AS AN UNDERWRITING TOOL TO DENY INDIVIDUAL HEALTH INSURANCE COVERAGE.

SUMMARY:

This bill prohibits insurers or other entities in the individual health insurance market from using as an underwriting factor a person's history of taking a particular prescription drug for anxiety on a short-term basis. But it allows them to use such history if it derives directly from a medical diagnosis of an underlying condition.

By law, an insurer or entity cannot move an insured person from a standard underwriting classification to a substandard one after the policy is issued or increase premiums because of the person's claim experience or health status. The law allows for a premium increase that applies to all people in an underwriting classification as a whole.

The bill applies to each insurer, HMO, hospital or medical service corporation, or fraternal benefit society that delivers, issues, renews, amends, or continues an individual health insurance policy in Connecticut.

EFFECTIVE DATE: January 1, 2010

COMMITTEE ACTION

Insurance and Real Estate Committee

Joint Favorable Substitute