Bill Text: CT SB00020 | 2017 | General Assembly | Comm Sub
Bill Title: An Act Requiring The Insurance Commissioner To Consider Affordability In Reviewing Individual And Group Health Insurance Policy Premium Rate Filings.
Spectrum: Committee Bill
Status: (Introduced - Dead) 2017-03-01 - Referred to Joint Committee on Insurance and Real Estate [SB00020 Detail]
Download: Connecticut-2017-SB00020-Comm_Sub.html
General Assembly |
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January Session, 2017 |
LCO No. 4630 | ||
*04630SB00020INS* | |||
Referred to Committee on INSURANCE AND REAL ESTATE |
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Introduced by: |
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(INS) |
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AN ACT REQUIRING THE INSURANCE COMMISSIONER TO CONSIDER AFFORDABILITY IN REVIEWING INDIVIDUAL AND GROUP HEALTH INSURANCE POLICY PREMIUM RATE FILINGS.
Be it enacted by the Senate and House of Representatives in General Assembly convened:
Section 1. Subsection (b) of section 38a-481 of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2017):
(b) No rate filed under the provisions of subsection (a) of this section shall be effective until it has been approved by the commissioner in accordance with regulations adopted pursuant to this subsection. The commissioner shall adopt regulations, in accordance with the provisions of chapter 54, to prescribe standards to ensure that such rates shall not be excessive, inadequate, [or] unfairly discriminatory or unaffordable. The commissioner may disapprove such rate if it fails to comply with such standards, except that no rate filed under the provisions of subsection (a) of this section for any Medicare supplement policy shall be effective unless approved in accordance with section 38a-474.
Sec. 2. Subsection (a) of section 38a-513 of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2017):
(a) (1) No group health insurance policy, as defined by the commissioner, or certificate shall be delivered or issued for delivery in this state unless a copy of the form for such policy or certificate has been submitted to and approved by the commissioner under the regulations adopted pursuant to this section. The commissioner shall adopt regulations, in accordance with the provisions of chapter 54, concerning the provisions, submission and approval of such policies and certificates and establishing a procedure for reviewing such policies and certificates. The commissioner shall disapprove the use of such form at any time if it does not comply with the requirements of law, or if it contains a provision or provisions that are unfair or deceptive or that encourage misrepresentation of the policy. The commissioner shall notify, in writing, the insurer that has filed any such form of the commissioner's disapproval, specifying the reasons for disapproval, and ordering that no such insurer shall deliver or issue for delivery to any person in this state a policy on or containing such form. The provisions of section 38a-19 shall apply to such order.
(2) No group health insurance policy or certificate for a small employer, as defined in section 38a-564, shall be delivered or issued for delivery in this state unless the premium rates have been submitted to and approved by the commissioner, and are, in the opinion of the commissioner, affordable. Premium rate filings shall include an actuarial memorandum that includes, but is not limited to, pricing assumptions and claims experience, and premium rates and loss ratios from the inception of the policy. As used in this subdivision, "loss ratio" means the ratio of incurred claims to earned premiums by the number of years of policy duration for all combined durations.
(3) No group health insurance policy, as defined by the commissioner, or certificate shall be delivered or issued for delivery in this state unless the premium rates have been submitted to and approved by the commissioner, and are, in the opinion of the commissioner, affordable.
This act shall take effect as follows and shall amend the following sections: | ||
Section 1 |
October 1, 2017 |
38a-481(b) |
Sec. 2 |
October 1, 2017 |
38a-513(a) |
Statement of Purpose:
To require the Insurance Commissioner to consider affordability as a factor in reviewing individual and group health insurance policy premium rate filings.
[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not underlined.]