An Act Concerning The Connecticut Health Insurance Exchange And Insurance Brokers.
Impact
The proposed legislation introduces several regulatory changes that could affect how insurance brokers operate within the Health Insurance Exchange. Specifically, it seeks to limit the circumstances under which an insurance broker can be removed from accounts within the exchange. The bill also establishes penalties for non-compliance, including financial repercussions for improper appointments, payments, or removals. This would not only incentivize adherence to the new regulations but also create a more structured oversight mechanism regarding broker conduct.
Summary
House Bill 05630, introduced in January 2019, aims to amend Chapter 706c of the general statutes related to health insurance in Connecticut. The bill specifically addresses the relationships between health carriers offering qualified health plans and insurance brokers working within the Connecticut Health Insurance Exchange. One of the primary intentions of the bill is to prohibit health carriers from appointing or compensating brokers who are employed by or have a contractual relationship with the exchange itself. This measure seeks to eliminate potential conflicts of interest and maintain the integrity of the exchange operations.
Contention
While the bill has been designed to streamline and regulate the relationship between health carriers and brokers, varying perspectives may arise regarding its implementation. Proponents argue that the bill will foster transparency and protect the interests of consumers within the health insurance market. Conversely, critics may express concerns that such restrictions could hinder brokers' ability to operate effectively and establish competitive relationships, ultimately impacting the availability of diverse health plan options for consumers.
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.