Researcher: JKL Page 1 4/7/21
OLR Bill Analysis
SB 843
AN ACT CONCERNING THE REGULATION OF INSURANCE IN
THIS STATE.
SUMMARY
This bill makes changes to two unrelated insurance statutes
concerning Medicare supplement (Medigap) plans and the property
and casualty “flex rating” law.
The bill allows insurers, HMOs, and other related entities to issue
Medigap policies and certificates for plan D, in addition to plans A, B,
and C as under existing law. (These are standardized plans for which
the federal government sets the benefits. Medigap plans generally
cover certain expenses that Medicare does not cover.)
By law, those entities that issue Medigap plans A, B, or C to people
eligible for Medicare based on age must also offer them to people
eligible for Medicare based on disability. The bill extends this
requirement to entities that issue plan D.
The bill exempts entities from offering plan C to any person newly
eligible for Medicare. (As of January 1, 2020, federal law restricts the
sale of plan C to those eligible for Medicare before that date.)
Additionally, the bill extends the sunset date for the personal risk
insurance (e.g., home, auto, marine, or umbrella) “flex rating” law
from July 1, 2021, to July 1 , 2025. The flex rating law allows property
and casualty insurers, until the law sunsets, to file new personal risk
insurance rates with the insurance commissioner and begin using them
immediately, without prior approval, under certain circumstances.
Under the current flex rating law, a personal risk insurance rate
cannot (1) increase or decrease by more than 6% statewide or (2)
increase by more than 15% in any individual territory. The bill 2021SB-00843-R000315-BA.DOCX
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eliminates this 15% territorial cap on rate increases. By law, if the
insurance commissioner determines rates are inadequate or unfairly
discriminatory, he must order the insurer to stop using the flex rating
rate change by a specified future date.
EFFECTIVE DATE: June 30, 2021, for the flex rating law provisions
and July 1, 2021, for the Medigap plan provisions.
COMMITTEE ACTION
Insurance and Real Estate Committee
Joint Favorable
Yea 18 Nay 0 (03/22/2021)