Connecticut Senate Bill SB00136

Connecticut 2019 Regular Session

• Introduced: 1/18/19
• Refer: 1/18/19

Caption

An Act Establishing A State-operated Reinsurance Program And Requiring That This State Apply For A State Innovation Waiver.

Impact

If enacted, SB00136 could significantly transform the landscape of health insurance in the state. By establishing a reinsurance program, the bill aims to lower premiums for consumers by alleviating the financial burden on insurance providers when they have to cover expensive claims. The implementation of a state-operated reinsurance program could lead to improved access to affordable healthcare for residents, possibly attracting more individuals to enroll in health insurance plans. Additionally, this could reduce the volatility in the state's insurance markets, creating a more predictable environment for both insurers and enrollees.

Summary

SB00136, known as the Act Establishing a State-operated Reinsurance Program, seeks to create a state-operated initiative aimed at providing reinsurance for health benefits under qualified health plans. The bill mandates the state to apply for a state innovation waiver, as specified under federal law, which would allow for a reallocation of premium tax credits and cost-sharing reductions from the federal government. This shift is intended to fund the proposed reinsurance program, thereby potentially stabilizing the state's health insurance market by mitigating the costs faced by insurers when covering high-risk individuals.

Contention

However, the bill is not without its critics. Points of contention primarily revolve around the sources of funding for the reinsurance program. Concerns have been raised about the potential impact on the state budget, considering the reallocation of federal funds could limit the resources available for other essential services. Additionally, some stakeholders argue that while reinsurance may help stabilize premiums, it does not address the root causes of high healthcare costs. There may be debate regarding how effectively the program will operate in practice and the implications of federal approval for the state innovation waiver.