OLR Bill Analysis

sHB 5019 (as amended by House “A”)*

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 prescription drug for anxiety for six months or less. But it allows them to use such history if it arises 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.

*House Amendment “A” (1) removes the term “particular,” thus specifying that the bill applies to any prescription drug for anxiety; (2) changes from “a short-term basis” to six months or less the length of prescription drug use the bill covers; and (3) makes technical changes to the bill.

EFFECTIVE DATE: January 1, 2010

COMMITTEE ACTION

Insurance and Real Estate Committee

Joint Favorable Substitute