Connecticut 2018 Regular Session

Connecticut Senate Bill SB00372 Compare Versions

Only one version of the bill is available at this time.
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11 General Assembly Raised Bill No. 372
22 February Session, 2018 LCO No. 1704
33 *01704_______INS*
44 Referred to Committee on INSURANCE AND REAL ESTATE
55 Introduced by:
66 (INS)
77
88 General Assembly
99
1010 Raised Bill No. 372
1111
1212 February Session, 2018
1313
1414 LCO No. 1704
1515
1616 *01704_______INS*
1717
1818 Referred to Committee on INSURANCE AND REAL ESTATE
1919
2020 Introduced by:
2121
2222 (INS)
2323
2424 AN ACT REQUIRING PRIOR LEGISLATIVE APPROVAL OF INCREASES IN ASSESSMENTS AND USER FEES CHARGED BY THE CONNECTICUT HEALTH INSURANCE EXCHANGE.
2525
2626 Be it enacted by the Senate and House of Representatives in General Assembly convened:
2727
2828 Section 1. Section 38a-1083 of the 2018 supplement to the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2018):
2929
3030 (a) For purposes of sections 38a-1080 to 38a-1093, inclusive, as amended by this act, "purposes of the exchange" means the purposes of and the pursuit of the goals of the exchange expressed in and pursuant to this section and the performance of the duties and responsibilities of the exchange set forth in sections 38a-1084 to 38a-1087, inclusive, which are hereby determined to be public purposes for which public funds may be expended. The powers enumerated in this section shall be interpreted broadly to effectuate the purposes of the exchange and shall not be construed as a limitation of powers.
3131
3232 (b) The goals of the exchange shall be to reduce the number of individuals without health insurance in this state and assist individuals and small employers in the procurement of health insurance by, among other services, offering easily comparable and understandable information about health insurance options.
3333
3434 (c) The exchange is authorized and empowered to:
3535
3636 (1) Have perpetual succession as a body politic and corporate and to adopt bylaws for the regulation of its affairs and the conduct of its business;
3737
3838 (2) Adopt an official seal and alter the same at pleasure;
3939
4040 (3) Maintain an office in the state at such place or places as it may designate;
4141
4242 (4) Employ such assistants, agents, managers and other employees as may be necessary or desirable;
4343
4444 (5) Acquire, lease, purchase, own, manage, hold and dispose of real and personal property, and lease, convey or deal in or enter into agreements with respect to such property on any terms necessary or incidental to the carrying out of these purposes, provided all such acquisitions of real property for the exchange's own use with amounts appropriated by this state to the exchange or with the proceeds of bonds supported by the full faith and credit of this state shall be subject to the approval of the Secretary of the Office of Policy and Management and the provisions of section 4b-23;
4545
4646 (6) Receive and accept, from any source, aid or contributions, including money, property, labor and other things of value;
4747
4848 (7) Charge assessments or user fees to health carriers that are capable of offering a qualified health plan through the exchange, [or] implement and change methods of calculating such assessments and fees and otherwise generate funding necessary to support the operations of the exchange, [and impose] provided any increase in the amount of such assessments or fees or change in any method used to calculate such assessments or fees shall be subject to prior legislative approval under subsection (d) of this section;
4949
5050 (8) Impose interest and penalties on [such] health carriers for delinquent payments of [such] assessments or user fees;
5151
5252 [(8)] (9) Procure insurance against loss in connection with its property and other assets in such amounts and from such insurers as it deems desirable;
5353
5454 [(9)] (10) Invest any funds not needed for immediate use or disbursement in obligations issued or guaranteed by the United States of America or the state and in obligations that are legal investments for savings banks in the state;
5555
5656 [(10)] (11) Issue bonds, bond anticipation notes and other obligations of the exchange for any of its corporate purposes, and to fund or refund the same and provide for the rights of the holders thereof, and to secure the same by pledge of revenues, notes and mortgages of others;
5757
5858 [(11)] (12) Borrow money for the purpose of obtaining working capital;
5959
6060 [(12)] (13) Account for and audit funds of the exchange and any recipients of funds from the exchange;
6161
6262 [(13)] (14) Make and enter into any contract or agreement necessary or incidental to the performance of its duties and execution of its powers. The contracts entered into by the exchange shall not be subject to the approval of any other state department, office or agency, provided copies of all contracts of the exchange shall be maintained by the exchange as public records, subject to the proprietary rights of any party to the contract;
6363
6464 [(14)] (15) To the extent permitted under its contract with other persons, consent to any termination, modification, forgiveness or other change of any term of any contractual right, payment, royalty, contract or agreement of any kind to which the exchange is a party;
6565
6666 [(15)] (16) Award grants to trained and certified individuals and institutions that will assist individuals, families and small employers and their employees in enrolling in appropriate coverage through the exchange. Applications for grants from the exchange shall be made on a form prescribed by the board;
6767
6868 [(16)] (17) Limit the number of plans offered, and use selective criteria in determining which plans to offer, through the exchange, provided individuals and employers have an adequate number and selection of choices;
6969
7070 [(17)] (18) Evaluate jointly with the [SustiNet] Health Care Cabinet established pursuant to section 19a-725 the feasibility of implementing a basic health program option as set forth in Section 1331 of the Affordable Care Act;
7171
7272 [(18)] (19) Establish one or more subsidiaries, in accordance with section 38a-1093, as amended by this act, to further the purposes of the exchange;
7373
7474 [(19)] (20) Make loans to each subsidiary established pursuant to section 38a-1093, as amended by this act, from the assets of the exchange and the proceeds of bonds, bond anticipation notes and other obligations issued by the exchange or assign or transfer to such subsidiary any of the rights, moneys or other assets of the exchange, provided such assignment or transfer is not in violation of state or federal law;
7575
7676 [(20)] (21) Sue and be sued, plead and be impleaded;
7777
7878 [(21)] (22) Adopt regular procedures, that are not in conflict with other provisions of the general statutes, for exercising the power of the exchange; and
7979
8080 [(22)] (23) Do all acts and things necessary and convenient to carry out the purposes of the exchange, provided such acts or things shall not conflict with the provisions of the Affordable Care Act, regulations adopted thereunder or federal guidance issued pursuant to the Affordable Care Act.
8181
8282 (d) The exchange shall submit any proposed increase in the amount of assessments or user fees charged to health carriers and any proposed method or change in method used in calculating such assessments or user fees to the joint standing committee of the General Assembly having cognizance of matters relating to insurance. If the committee does not act within sixty days after receiving a submittal, the proposed increase, method or change in method, as the case may be, shall be deemed to be denied by the committee.
8383
8484 [(d)] (e) (1) The chief executive officer of the exchange shall provide to the commissioner the name of any health carrier that fails to pay any assessment or user fee under subdivision (7) of subsection (c) of this section to the exchange. The commissioner shall see that all laws respecting the authority of the exchange pursuant to [said subdivision (7)] subdivisions (7) and (8) of subsection (c) of this section are faithfully executed. The commissioner has all the powers specifically granted under this title and all further powers that are reasonable and necessary to enable the commissioner to enforce the provisions of [said subdivision (7)] subdivisions (7) and (8) of subsection (c) of this section.
8585
8686 (2) Any health carrier aggrieved by an administrative action taken by the commissioner under subdivision (1) of this subsection may appeal therefrom in accordance with the provisions of section 4-183, except venue for such appeal shall be in the judicial district of New Britain.
8787
8888 Sec. 2. Subsection (b) of section 38a-1093 of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2018):
8989
9090 (b) Each subsidiary shall have and may exercise the powers of the exchange and such additional powers as are set forth in such resolution, except the powers of the exchange set forth in subdivisions (7), [(12), (15), (16), (17) and (21)] (8), (13), (16), (17), (18) and (22) of subsection (c) of section 38a-1083, as amended by this act, shall be reserved to the exchange and shall not be exercisable by any subsidiary of the exchange.
9191
9292
9393
9494
9595 This act shall take effect as follows and shall amend the following sections:
9696 Section 1 October 1, 2018 38a-1083
9797 Sec. 2 October 1, 2018 38a-1093(b)
9898
9999 This act shall take effect as follows and shall amend the following sections:
100100
101101 Section 1
102102
103103 October 1, 2018
104104
105105 38a-1083
106106
107107 Sec. 2
108108
109109 October 1, 2018
110110
111111 38a-1093(b)
112112
113113 Statement of Purpose:
114114
115115 To require the Connecticut Health Insurance Exchange to receive the approval of the joint standing committee of the General Assembly having cognizance of matters relating to insurance before (1) increasing the amount of any assessment or user fee, or (2) implementing or changing any process used to increase the amount of any assessment or user fee.
116116
117117 [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.]