Connecticut Senate Bill SB00374

Connecticut 2018 Regular Session

• Introduced: 3/1/18
• Refer: 3/1/18

Caption

An Act Requiring That Health Carriers Using The Connecticut Health Insurance Exchange Pay A Minimum Commission To Certain Insurance Producers.

Impact

If enacted, SB00374 would amend existing statutes regarding health benefit plans and the conduct of health carriers within Connecticut. Specifically, it mandates that health carriers deliver reasonable commissions to insurance producers, aligning their incentives with the interests of consumers. This could lead to increased engagement from insurance producers, as they will be financially motivated to assist clients more effectively, which may improve access to healthcare services for individuals and small businesses. However, it also places a regulatory framework on how commissions are structured and has implications for the operational practices of insurance providers.

Summary

SB00374 aims to establish a requirement for health carriers utilizing the Connecticut Health Insurance Exchange to pay a minimum commission to insurance producers who assist individuals and small employers in selecting qualified health plans. This bill is significant as it seeks to ensure that insurance producers are compensated fairly for their efforts in guiding consumers through the complex landscape of health insurance options available through the exchange. The legislation intends to enhance the support that insurance producers can provide, ultimately improving outcomes for consumers seeking insurance coverage.

Contention

Discussion around SB00374 may reflect broader debates regarding the role of insurance producers in the health insurance market. Some stakeholders might argue that while the bill aims to support insurance producers, it could indirectly affect the cost of insurance for consumers if health carriers pass on these commission expenses. Additionally, there could be concerns about the oversight and accountability mechanisms established by the bill, particularly in ensuring that complaints regarding commission disputes are resolved fairly and efficiently. The potential for differing interpretations of what constitutes a 'reasonable commission' could also lead to disputes between insurance carriers and producers.