Connecticut Seal

General Assembly

File No. 483

    January Session, 2011

Substitute House Bill No. 6308

House of Representatives, April 7, 2011

The Committee on Planning and Development reported through REP. GENTILE of the 104th Dist., Chairperson of the Committee on the part of the House, that the substitute bill ought to pass.

This act shall take effect as follows and shall amend the following sections:

Section 1

July 1, 2011

New section

Sec. 2

July 1, 2011

New section

Sec. 3

July 1, 2011

New section

Sec. 4

July 1, 2011

New section

Sec. 5

July 1, 2011

New section

Sec. 6

July 1, 2011

New section

Sec. 7

July 1, 2011

New section

Sec. 8

from passage

New section

Sec. 9

July 1, 2011

38a-564(4)(B)

INS

Joint Favorable Subst. C/R

LAB

LAB

Joint Favorable C/R

PD

PD

Joint Favorable Subst.-LCO

 

Agency Affected

Fund-Effect

FY 12 $

FY 13 $

Comptroller

GF - Cost

$115,698

$115,698

Comptroller Misc. Accounts (Fringe Benefits)1

GF - Cost

$69,419

$69,419

Comptroller Misc. Accounts (Fringe Benefits: State Employee and Retiree Health)

GF & TF – See Below

See Below

See Below

Department of Revenue Services

GF – Revenue Loss

Potential

Potential

 

Estimated Population2

Non-State Public Employers (1)

577,949

Municipal-Related Employers(2)

Unavailable

Small Employers(3)

690,000

Nonprofit Employers(3)

174,342

   

Average Annual Premium Rates

 

Employer

Single Coverage

Employee Share

Family Coverage

Employee Share

National*

Small Firms

$5,169

15%

$13,735

32%

Large Firms

$5,104

19%

$14,161

25%

Regional*

         

Northeast

$5,252

19%

$14,117

24%

State+

State of Connecticut

$7,009

7%

$18,925

14%

 

CT Cities & Towns

$8,000

10%

$21,300

10%

Local**

CT Boards of Education

$8,000

13%

$21,300

13%

*National and Regional PPO plan data obtained from 2010 Employer Health Benefit Survey. + State POE health plan data obtained from Office of the State Comptroller. ** Local data obtained from CT Public Sector Healthcare Cost & Benefit Survey 2009.

Yea

11

Nay

9

(03/03/2011)

Yea

6

Nay

4

(03/11/2011)

Yea

12

Nay

8

(03/23/2011)

TOP

1 The fringe benefit costs for most state employees are budgeted centrally in accounts administered by the Comptroller. The estimated non-pension fringe benefit cost associated with personnel changes is 23.76% of payroll in FY 12 and FY 13. In addition, there could be an impact to potential liability for the applicable state pension funds.

2 (1) Figures include dependents and retirees. (2) Information on this population is unavailable at this time. The bill defines these as employees of food service, property management, and school transportation businesses that contract with non-state public employers. (3) Figures do not include dependents or retirees, for which information is unavailable..

3 The state currently collects approximately $8 million a year from the premium tax on health insurance policies procured by municipalities.

4 Current law exempts new or renewed contracts or policies written to provide coverage to municipal employees under a plan procured pursuant to CGS 5-259(i) from the premiums tax. Therefore, MEHIP participants are currently exempt from the premiums tax. As a result, there would not be a loss to the premiums tax should MEHIP participating non-state public employers shift coverage to the state employee health plan.

5 CT Public Sector Healthcare Cost & Benefit Survey, 2009.