Researcher: AR Page 1 4/8/21
OLR Bill Analysis
SB 1041
AN ACT CONCERNING HEALTH CARE SHARING PLANS AND
HEALTH CARE SHARING MINISTRIES.
SUMMARY
This bill prohibits an individual from receiving a fee or anything
else of value for (1) selling, soliciting, or negotiating a health care
sharing plan for a Connecticut resident or (2) administering such a
plan that includes a Connecticut resident.
The bill makes a violation of this prohibition a Connecticut Unfair
Insurance Practices Act (CUIPA) violation (see BACKGROUND).
Under the bill, a “health care sharing plan” is an arrangement of
members, or an affiliation or network of individuals, that encourages
its participants to contribute to the medical, health care, assisted living,
prescription drug, or wellness costs of other participants.
Additionally, the bill prohibits anyone licensed by the Insurance
Department from conducting business with, or taking actions
requiring a license on behalf of, a healthcare sharing ministry or health
care sharing plan.
The bill defines a “health care sharing ministry” as someone who is
not a health carrier that (1) refers to themselves as a “health care
sharing ministry,” “health sharing ministry,” or anything similar and
(2) holds themselves out as offering a means of, or alternative to,
maintaining minimum essential coverage required under the federal
Affordable Care Act (ACA).
Under the bill, the prohibition remains in effect regardless of
whether the ACA’s minimum essential coverage requirement, or any
of its other provisions, are repealed or rendered ineffective (see
BACKGROUND). 2021SB-01041-R000367-BA.DOCX
Researcher: AR Page 2 4/8/21
EFFECTIVE DATE: October 1, 2021
BACKGROUND
Connecticut Unfair Insurance Practices Act (CUIPA)
The law prohibits engaging in unfair or deceptive acts or practices
in the insurance business. It authorizes the insurance commissioner to
conduct investigations and hearings, issue cease and desist orders,
impose fines, revoke or suspend licenses, and order restitution for per
se violations (i.e., violations specifically listed in statute). The law also
allows the commissioner to ask the attorney general to seek injunctive
relief in Superior Court if he believes someone is engaging in other
unfair or deceptive acts not specifically defined in statute.
Fines may be up to (1) $5,000 per violation to a $50,000 maximum or
(2) $25,000 per violation to a $250,000 maximum in any six-month
period if the violation was knowingly committed. The law also
imposes a fine of up to $50,000, in addition to or in lieu of a license
suspension or revocation, for violating a cease and desist order (CGS §
38a-815 et seq.)
Minimum Essential Coverage
Under federal law, “minimum essential coverage” is health
insurance coverage from an individual policy, an employer-sponsored
health plan, one of several federal or state medical plans, or certain
other health insurance plans that meet minimum ACA requirements.
By law, this excludes single service plans (such as dental or vision
only), among others. (26 U.S.C. § 5000A).
COMMITTEE ACTION
Insurance and Real Estate Committee
Joint Favorable
Yea 11 Nay 7 (03/22/2021)