Connecticut Senate Bill SB00204

Connecticut 2012 Regular Session

• Introduced: 2/22/12
• Refer: 2/22/12

Caption

An Act Concerning The State Medical Loss Ratio.

Impact

The implementation of SB00204 is expected to enhance consumer protection in the health insurance market by ensuring that a significant portion of health insurance premiums is allocated to medical care rather than administrative costs. Insurers are now mandated to provide information that discloses their medical loss ratio to consumers when they apply for coverage. This move is anticipated to empower consumers to make more informed choices and encourage insurers to operate more efficiently.

Summary

SB00204, titled 'An Act Concerning The State Medical Loss Ratio', aims to establish a minimum medical loss ratio of eighty-two percent for individual and small employer group health insurance policies in Connecticut. This legislation not only mandates that insurers must meet this threshold but also requires them to issue rebates to policyholders if they fail to do so. The bill also emphasizes transparency by intending to create a consumer report card that will allow comparisons of health insurance carriers based on various performance metrics, including their medical loss ratios.

Contention

While supporters argue that the bill is a necessary step in protecting consumers and ensuring that health insurance companies are held accountable for their spending, there are concerns regarding its potential implications for the insurance market. Some critics worry that the requirement for insurers to issue rebates could lead to increased premiums for consumers in the long run as insurers adjust to meet the new regulations. Furthermore, provisions that could affect a nonprofit corporation or mutual insurance companies have raised questions about fairness and competition in the market.