Connecticut House Bill HB05860

Connecticut 2019 Regular Session

• Introduced: 1/23/19
• Refer: 1/23/19

Caption

An Act Requiring Health Insurers To Accept Payments From Certain Nonprofit Corporations.

Impact

If enacted, HB 5860 would bring a significant change to the operations of health insurers in the state by imposing requirements to accept payments from specified nonprofit organizations. This could lead to increased accessibility of healthcare services for communities that rely on nonprofit health organizations, fostering a more inclusive healthcare delivery system. The bill seeks to address potential issues faced by these nonprofits in securing funding, thereby enhancing their viability and ability to serve the public effectively.

Summary

House Bill 5860 mandates that health insurers, including various types of insurance and medical service corporations operating in the state, accept payments from nonprofit corporations that are compliant with the federal False Claims Act. This legislation aims to streamline the financial processes between health insurance providers and nonprofit entities that provide essential health-related services, ensuring that these nonprofits can sustain their operations without facing barriers in payment acceptance from insurers.

Contention

While the bill seems advantageous for nonprofit healthcare providers, there may be concerns raised about the implications for insurers. Some stakeholders may argue that imposing such a requirement could complicate the financial operations of health insurance companies, especially if they perceive potential risks related to fraud or mismanagement associated with some nonprofits. Therefore, the effectiveness of this bill would depend on creating a balance between facilitating nonprofit operations and ensuring the integrity of the health insurance system.