OFFICE OF FISCAL ANALYSIS
Legislative Office Building, Room 5200
Hartford, CT 06106 (860) 240-0200
http://www.cga.ct.gov/ofa
HB-5013
AN ACT CONCERNING MANDATED HEALTH INSURANCE
BENEFIT REVIEW.
Primary Analyst: MP 4/5/21
Contributing Analyst(s):
OFA Fiscal Note
State Impact:
Agency Affected Fund-Effect FY 22 $ FY 23 $
Insurance Dept. IF - Indeterminate Potential Potential
Note: IF=Insurance Fund
Municipal Impact: None
Explanation
The bill may result in a change in costs and an equally sized change
in revenue to the Insurance Department (DOI) associated with the
Health Benefit Review Program (HBRP). Unchanged by the bill, costs
of the program are reimbursed by domestic carriers, so there is no
anticipated net fiscal impact to the state.
To the extent that the bill's modifications to the mandate process
result in more or more frequent referrals to the HBRP, DOI will incur
more contract costs to analyze the mandate proposals. The most recent
review was conducted in FY 15 at a cost of $536,029.
On a per-review basis, the bill's provisions are likely to result in
savings compared to current law. Specifically, limits to the number
and type of mandates, changes to the criteria that must be evaluated,
and the potential for competitive bidding may result in contract cost
savings when reviews are conducted.
The Out Years 2021HB-05013-R000328-FN.DOCX Page 2 of 2
The annualized ongoing fiscal impact identified above would
continue into the future.
Sources: Connecticut Insurance Department