OFFICE OF FISCAL ANALYSIS

Legislative Office Building, Room 5200

Hartford, CT 06106 (860) 240-0200

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

SB-249

AN ACT CONCERNING DISPUTES BETWEEN HOSPITALS OR HOSPITAL SYSTEMS AND HEALTH INSURERS.


OFA Fiscal Note

State Impact:

Agency Affected

Fund-Effect

UConn Health Center

Other - See Below

State Comptroller - Fringe Benefits (State Employee And Retiree Health Accounts)

See Below

Municipal Impact:

Municipalities

Effect

Various Municipalities

See Below

Explanation

The bill requires a binding arbitration process for certain contract disputes between hospitals and health insurers. To the extent that (1) the contract negotiation timelines imposed in the bill and (2) binding arbitration result in reduced administrative expenses, the UConn Health Center may incur reduced costs.

It is unclear whether substituting binding arbitration for the negotiation process will result in more or less revenue from insurers for the UConn Health Center.

The bill may also result in a fiscal impact to the state employee and retiree health plan and municipal health plans to the extent that (1) the contract negotiation timelines imposed in the bill and (2) binding arbitration result in reduced administrative expenses for the plans.

The Out Years

The annualized ongoing fiscal impact identified above would continue into the future subject to inflation.