OFFICE OF FISCAL ANALYSIS

Legislative Office Building, Room 5200

Hartford, CT 06106 (860) 240-0200

http: //www.cga.ct.gov/ofa

sSB-11

AN ACT CONCERNING THE RATE APPROVAL PROCESS FOR CERTAIN HEALTH INSURANCE POLICIES.

AMENDMENT

LCO No.: 8035

File Copy No.: 203

Senate Calendar No.: 157

OFA Fiscal Note

State Impact: See Below

Municipal Impact: See Below

Explanation

The amendment permits insurers to offer flexible health benefit policies which would be exempt from state-mandated health benefits.

There may be a savings to the state to the extent that insurers offer these flexible health benefit policies in the health insurance exchange required under federal health care reform. The state savings would be the result of not being liable for benefits mandated in excess of the essential benefits package for those flexible health benefit policies.

There is no fiscal impact to the state employee plan, as the state employee health plan is self-insured and exempt from health insurance mandates.

There may be a savings to fully insured municipalities who choose to procure a flexible health benefit policy for their employees and retirees. The savings assumes the policy's premiums are lower as a result of providing less expansive coverage. Due to federal law, municipalities with self-insured health plans are exempt from state health insurance benefit mandates.

The preceding Fiscal Impact statement is prepared for the benefit of the members of the General Assembly, solely for the purposes of information, summarization and explanation and does not represent the intent of the General Assembly or either chamber thereof for any purpose. In general, fiscal impacts are based upon a variety of informational sources, including the analyst's professional knowledge. Whenever applicable, agency data is consulted as part of the analysis, however final products do not necessarily reflect an assessment from any specific department.