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3 | 3 | | LCO No. 4874 1 of 3 |
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4 | 4 | | |
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5 | 5 | | General Assembly Raised Bill No. 7265 |
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6 | 6 | | January Session, 2019 |
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7 | 7 | | LCO No. 4874 |
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8 | 8 | | |
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9 | 9 | | |
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10 | 10 | | Referred to Committee on INSURANCE AND REAL ESTATE |
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11 | 11 | | |
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12 | 12 | | |
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13 | 13 | | Introduced by: |
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14 | 14 | | (INS) |
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15 | 15 | | |
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16 | 16 | | |
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17 | 17 | | |
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18 | 18 | | |
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19 | 19 | | AN ACT AUTHORIZING A SSOCIATION HEALTH PLANS FOR GRO UP |
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20 | 20 | | PRACTICES AND EXEMPT ING PRACTICES COVERE D UNDER SUCH |
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21 | 21 | | PLANS FROM CERTAIN P ROVISIONS OF THE INSURANCE |
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22 | 22 | | STATUTES. |
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23 | 23 | | Be it enacted by the Senate and House of Representatives in General |
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24 | 24 | | Assembly convened: |
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25 | 25 | | |
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26 | 26 | | Section 1. (NEW) (Effective October 1, 2019) The Insurance 1 |
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27 | 27 | | Commissioner shall adopt regulations, in accordance with chapter 54 2 |
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28 | 28 | | of the general statutes, to enable two or more group practices, as 3 |
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29 | 29 | | defined in section 19a-486i of the general statutes, to form a bona fide 4 |
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30 | 30 | | group or association of employers for the purpose of offering and 5 |
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31 | 31 | | providing health coverage to such group practices and their employees 6 |
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32 | 32 | | in the manner prescribed in 29 CFR Part 2510, as amended from time 7 |
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33 | 33 | | to time. 8 |
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34 | 34 | | Sec. 2. Subdivisions (3) and (4) of section 38a-564 of the general 9 |
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35 | 35 | | statutes are repealed and the following is substituted in lieu thereof 10 |
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36 | 36 | | (Effective October 1, 2019): 11 |
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37 | 37 | | (3) "Employee" means an individual employed by an employer. 12 |
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38 | 38 | | "Employee" does not include (A) an individual and such individual's 13 Raised Bill No. 7265 |
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39 | 39 | | |
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40 | 40 | | |
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41 | 41 | | |
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42 | 42 | | LCO No. 4874 2 of 3 |
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43 | 43 | | |
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44 | 44 | | spouse with respect to an incorporated or unincorporated trade or 14 |
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45 | 45 | | business that is wholly owned by such individual, by such individual's 15 |
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46 | 46 | | spouse or by such individual and such individual's spouse, [or] (B) a 16 |
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47 | 47 | | partner in a partnership and such partner's spouse with respect to such 17 |
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48 | 48 | | partnership, or (C) an individual covered under an association health 18 |
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49 | 49 | | plan authorized under regulations adopted pursuant to section 1 of 19 |
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50 | 50 | | this act. 20 |
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51 | 51 | | (4) (A) "Small employer" means (i) prior to January 1, 2016, an 21 |
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52 | 52 | | employer that employed an average of at least one but not more than 22 |
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53 | 53 | | fifty employees on business days during the preceding calendar year 23 |
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54 | 54 | | and employs at least one employee on the first day of the group health 24 |
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55 | 55 | | insurance plan year, and (ii) on and after January 1, 2016, an employer 25 |
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56 | 56 | | that employed an average of at least one but not more than one 26 |
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57 | 57 | | hundred employees on business days during the preceding calendar 27 |
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58 | 58 | | year and employs at least one employee on the first day of the group 28 |
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59 | 59 | | health insurance plan year, except the commissioner may postpone 29 |
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60 | 60 | | said January 1, 2016, date to be consistent with any such postponement 30 |
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61 | 61 | | made by the Secretary of the United States Department of Health and 31 |
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62 | 62 | | Human Services under the Patient Protection and Affordable Care Act, 32 |
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63 | 63 | | P.L. 111-148, as amended from time to time. "Small employer" does not 33 |
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64 | 64 | | include a sole proprietorship that employs only the sole proprietor or 34 |
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65 | 65 | | the spouse of such sole proprietor, or a group practice, as defined in 35 |
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66 | 66 | | section 19a-486i, providing coverage through an association health 36 |
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67 | 67 | | plan authorized under regulations adopted pursuant to section 1 of 37 |
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68 | 68 | | this act. 38 |
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69 | 69 | | (B) (i) For purposes of subparagraph (A) of this subdivision, the 39 |
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70 | 70 | | number of employees shall be determined by adding (I) the number of 40 |
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71 | 71 | | full-time employees for each month who work a normal work week of 41 |
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72 | 72 | | thirty hours or more, and (II) the number of full-time equivalent 42 |
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73 | 73 | | employees, calculated for each month by dividing by one hundred 43 |
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74 | 74 | | twenty the aggregate number of hours worked for such month by 44 |
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75 | 75 | | employees who work a normal work week of less than thirty hours, 45 |
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76 | 76 | | and averaging such total for the calendar year. 46 Raised Bill No. 7265 |
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79 | 79 | | |
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80 | 80 | | LCO No. 4874 3 of 3 |
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81 | 81 | | |
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82 | 82 | | (ii) If an employer was not in existence throughout the preceding 47 |
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83 | 83 | | calendar year, the number of employees shall be based on the average 48 |
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84 | 84 | | number of employees that such employer reasonably expects to 49 |
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85 | 85 | | employ in the current calendar year. 50 |
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86 | 86 | | (C) All persons treated as a single employer under Section 414 of the 51 |
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87 | 87 | | Internal Revenue Code of 1986, or any subsequent corresponding 52 |
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88 | 88 | | internal revenue code of the United States, as amended from time to 53 |
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89 | 89 | | time, shall be considered a single employer for purposes of this 54 |
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90 | 90 | | subdivision. 55 |
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91 | 91 | | This act shall take effect as follows and shall amend the following |
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92 | 92 | | sections: |
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93 | 93 | | |
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94 | 94 | | Section 1 October 1, 2019 New section |
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95 | 95 | | Sec. 2 October 1, 2019 38a-564(3) and (4) |
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96 | 96 | | |
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97 | 97 | | Statement of Purpose: |
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98 | 98 | | To: (1) Require the Insurance Commissioner to adopt regulations to |
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99 | 99 | | enable two or more group practices to form a bona fide group or |
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100 | 100 | | association of employers for the purpose of offering and providing |
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101 | 101 | | health coverage to such group practices and their employees; and (2) |
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102 | 102 | | exempt such group practices from certain provisions of the insurance |
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103 | 103 | | statutes governing health insurance provided to small employers and |
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104 | 104 | | their employees. |
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105 | 105 | | [Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, |
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106 | 106 | | except that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is |
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107 | 107 | | not underlined.] |
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108 | 108 | | |
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