An Act Concerning Mandatory Health Insurance Coverage, Establishing An Affordable Health Care Fund And A Task Force To Develop A Reinsurance Program To Seek A State Innovation Waiver.
Impact
If enacted, HB 05114 would amend existing statutory language to facilitate a comprehensive health insurance coverage verification program, ensuring that individuals comply with the new mandate. It would establish mechanisms to verify coverage status and confirm that individuals are either enrolled in a health insurance plan or subject to the specified tax penalty. Moreover, the bill calls for the creation of a task force to develop a reinsurance program, which would enable the state to apply for a State Innovation Waiver from the federal government, potentially providing more flexibility in managing health care funds and insurance regulations in the state.
Summary
House Bill 05114 proposes several significant changes to health insurance regulations in the state. The bill aims to establish a mandatory individual health insurance coverage requirement and includes provisions for an accompanying tax penalty for non-compliance. This mandate is intended to encourage broader health insurance enrollment among the population, thereby improving the overall health care system. Additionally, the bill seeks to create an Affordable Health Care Fund designed to provide financial assistance for health care needs and help stabilize the insurance market.
Contention
The bill has sparked debate among legislators and various stakeholder groups. Proponents argue that the individual mandate is necessary to prevent adverse selection in the insurance market, where only the unhealthier individuals purchase insurance, leading to increased premiums. On the other hand, opponents express concerns about the potential financial burden on low-income individuals who may already struggle with health care costs. Additionally, the introduction of a tax penalty could be seen as punitive and could face legal challenges based on the broader implications of mandating health insurance coverage.
An Act Concerning Insurance Market Conduct And Insurance Licensing, The Insurance Department's Technical Corrections And Other Revisions To The Insurance Statutes And Captive Insurance.