Connecticut 2019 Regular Session

Connecticut House Bill HB07265 Compare Versions

Only one version of the bill is available at this time.
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55 General Assembly Raised Bill No. 7265
66 January Session, 2019
77 LCO No. 4874
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1010 Referred to Committee on INSURANCE AND REAL ESTATE
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1313 Introduced by:
1414 (INS)
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1919 AN ACT AUTHORIZING A SSOCIATION HEALTH PLANS FOR GRO UP
2020 PRACTICES AND EXEMPT ING PRACTICES COVERE D UNDER SUCH
2121 PLANS FROM CERTAIN P ROVISIONS OF THE INSURANCE
2222 STATUTES.
2323 Be it enacted by the Senate and House of Representatives in General
2424 Assembly convened:
2525
2626 Section 1. (NEW) (Effective October 1, 2019) The Insurance 1
2727 Commissioner shall adopt regulations, in accordance with chapter 54 2
2828 of the general statutes, to enable two or more group practices, as 3
2929 defined in section 19a-486i of the general statutes, to form a bona fide 4
3030 group or association of employers for the purpose of offering and 5
3131 providing health coverage to such group practices and their employees 6
3232 in the manner prescribed in 29 CFR Part 2510, as amended from time 7
3333 to time. 8
3434 Sec. 2. Subdivisions (3) and (4) of section 38a-564 of the general 9
3535 statutes are repealed and the following is substituted in lieu thereof 10
3636 (Effective October 1, 2019): 11
3737 (3) "Employee" means an individual employed by an employer. 12
3838 "Employee" does not include (A) an individual and such individual's 13 Raised Bill No. 7265
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4444 spouse with respect to an incorporated or unincorporated trade or 14
4545 business that is wholly owned by such individual, by such individual's 15
4646 spouse or by such individual and such individual's spouse, [or] (B) a 16
4747 partner in a partnership and such partner's spouse with respect to such 17
4848 partnership, or (C) an individual covered under an association health 18
4949 plan authorized under regulations adopted pursuant to section 1 of 19
5050 this act. 20
5151 (4) (A) "Small employer" means (i) prior to January 1, 2016, an 21
5252 employer that employed an average of at least one but not more than 22
5353 fifty employees on business days during the preceding calendar year 23
5454 and employs at least one employee on the first day of the group health 24
5555 insurance plan year, and (ii) on and after January 1, 2016, an employer 25
5656 that employed an average of at least one but not more than one 26
5757 hundred employees on business days during the preceding calendar 27
5858 year and employs at least one employee on the first day of the group 28
5959 health insurance plan year, except the commissioner may postpone 29
6060 said January 1, 2016, date to be consistent with any such postponement 30
6161 made by the Secretary of the United States Department of Health and 31
6262 Human Services under the Patient Protection and Affordable Care Act, 32
6363 P.L. 111-148, as amended from time to time. "Small employer" does not 33
6464 include a sole proprietorship that employs only the sole proprietor or 34
6565 the spouse of such sole proprietor, or a group practice, as defined in 35
6666 section 19a-486i, providing coverage through an association health 36
6767 plan authorized under regulations adopted pursuant to section 1 of 37
6868 this act. 38
6969 (B) (i) For purposes of subparagraph (A) of this subdivision, the 39
7070 number of employees shall be determined by adding (I) the number of 40
7171 full-time employees for each month who work a normal work week of 41
7272 thirty hours or more, and (II) the number of full-time equivalent 42
7373 employees, calculated for each month by dividing by one hundred 43
7474 twenty the aggregate number of hours worked for such month by 44
7575 employees who work a normal work week of less than thirty hours, 45
7676 and averaging such total for the calendar year. 46 Raised Bill No. 7265
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8282 (ii) If an employer was not in existence throughout the preceding 47
8383 calendar year, the number of employees shall be based on the average 48
8484 number of employees that such employer reasonably expects to 49
8585 employ in the current calendar year. 50
8686 (C) All persons treated as a single employer under Section 414 of the 51
8787 Internal Revenue Code of 1986, or any subsequent corresponding 52
8888 internal revenue code of the United States, as amended from time to 53
8989 time, shall be considered a single employer for purposes of this 54
9090 subdivision. 55
9191 This act shall take effect as follows and shall amend the following
9292 sections:
9393
9494 Section 1 October 1, 2019 New section
9595 Sec. 2 October 1, 2019 38a-564(3) and (4)
9696
9797 Statement of Purpose:
9898 To: (1) Require the Insurance Commissioner to adopt regulations to
9999 enable two or more group practices to form a bona fide group or
100100 association of employers for the purpose of offering and providing
101101 health coverage to such group practices and their employees; and (2)
102102 exempt such group practices from certain provisions of the insurance
103103 statutes governing health insurance provided to small employers and
104104 their employees.
105105 [Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline,
106106 except that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is
107107 not underlined.]
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