Connecticut 2021 Regular Session

Connecticut Senate Bill SB01049 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
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4	4	LCO No. 4504 1 of 6
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6	6	General Assembly Raised Bill No. 1049
7	7	January Session, 2021
8	8	LCO No. 4504
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10	10
11	11	Referred to Committee on INSURANCE AND REAL ESTATE
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14	14	Introduced by:
15	15	(INS)
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20	20	AN ACT CONCERNING HI GH DEDUCTIBLE HEALTH PLANS.
21	21	Be it enacted by the Senate and House of Representatives in General
22	22	Assembly convened:
23	23
24	24	Section 1. Section 38a-1 of the general statutes is repealed and the 1
25	25	following is substituted in lieu thereof (Effective January 1, 2022): 2
26	26	Terms used in this title and section 2 of this act, unless it appears from 3
27	27	the context to the contrary, shall have a scope and meaning as set forth 4
28	28	in this section. 5
29	29	(1) "Affiliate" or "affiliated" means a person that directly, or indirectly 6
30	30	through one or more intermediaries, controls, is controlled by or is 7
31	31	under common control with another person. 8
32	32	(2) "Alien insurer" means any insurer that has been chartered by or 9
33	33	organized or constituted within or under the laws of any jurisdiction or 10
34	34	country without the United States. 11
35	35	(3) "Annuities" means all agreements to make periodical payments 12
36	36	where the making or continuance of all or some of the series of the 13
37	37	payments, or the amount of the payment, is dependent upon the 14 Raised Bill No. 1049
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41	41	LCO No. 4504 2 of 6
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43	43	continuance of human life or is for a specified term of years. This 15
44	44	definition does not apply to payments made under a policy of life 16
45	45	insurance. 17
46	46	(4) "Commissioner" means the Insurance Commissioner. 18
47	47	(5) "Control", "controlled by" or "under common control with" means 19
48	48	the possession, direct or indirect, of the power to direct or cause the 20
49	49	direction of the management and policies of a person, whether through 21
50	50	the ownership of voting securities, by contract other than a commercial 22
51	51	contract for goods or nonmanagement services, or otherwise, unless the 23
52	52	power is the result of an official position with the person. 24
53	53	(6) "Domestic insurer" means any insurer that has been chartered by, 25
54	54	incorporated, organized or constituted within or under the laws of this 26
55	55	state. 27
56	56	(7) "Domestic surplus lines insurer" means any domestic insurer that 28
57	57	has been authorized by the commissioner to write surplus lines 29
58	58	insurance. 30
59	59	(8) "Foreign country" means any jurisdiction not in any state, district 31
60	60	or territory of the United States. 32
61	61	(9) "Foreign insurer" means any insurer that has been chartered by or 33
62	62	organized or constituted within or under the laws of another state or a 34
63	63	territory of the United States. 35
64	64	(10) "Insolvency" or "insolvent" means, for any insurer, that it is 36
65	65	unable to pay its obligations when they are due, or when its admitted 37
66	66	assets do not exceed its liabilities plus the greater of: (A) Capital and 38
67	67	surplus required by law for its organization and continued operation; 39
68	68	or (B) the total par or stated value of its authorized and issued capital 40
69	69	stock. For purposes of this subdivision "liabilities" shall include but not 41
70	70	be limited to reserves required by statute or by regulations adopted by 42
71	71	the commissioner in accordance with the provisions of chapter 54 or 43
72	72	specific requirements imposed by the commissioner upon a subject 44 Raised Bill No. 1049
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76	76	LCO No. 4504 3 of 6
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78	78	company at the time of admission or subsequent thereto. 45
79	79	(11) "Insurance" means any agreement to pay a sum of money, 46
80	80	provide services or any other thing of value on the happening of a 47
81	81	particular event or contingency or to provide indemnity for loss in 48
82	82	respect to a specified subject by specified perils in return for a 49
83	83	consideration. In any contract of insurance, an insured shall have an 50
84	84	interest which is subject to a risk of loss through destruction or 51
85	85	impairment of that interest, which risk is assumed by the insurer and 52
86	86	such assumption shall be part of a general scheme to distribute losses 53
87	87	among a large group of persons bearing similar risks in return for a 54
88	88	ratable contribution or other consideration. 55
89	89	(12) "Insurer" or "insurance company" includes any person or 56
90	90	combination of persons doing any kind or form of insurance business 57
91	91	other than a fraternal benefit society, and shall include a receiver of any 58
92	92	insurer when the context reasonably permits. 59
93	93	(13) "Insured" means a person to whom or for whose benefit an 60
94	94	insurer makes a promise in an insurance policy. The term includes 61
95	95	policyholders, subscribers, members and beneficiaries. This definition 62
96	96	applies only to the provisions of this title and does not define the 63
97	97	meaning of this word as used in insurance policies or certificates. 64
98	98	(14) "Life insurance" means insurance on human lives and insurances 65
99	99	pertaining to or connected with human life. The business of life 66
100	100	insurance includes granting endowment benefits, granting additional 67
101	101	benefits in the event of death by accident or accidental means, granting 68
102	102	additional benefits in the event of the total and permanent disability of 69
103	103	the insured, and providing optional methods of settlement of proceeds. 70
104	104	Life insurance includes burial contracts to the extent provided by 71
105	105	section 38a-464. 72
106	106	(15) "Mutual insurer" means any insurer without capital stock, the 73
107	107	managing directors or officers of which are elected by its members. 74
108	108	(16) "Person" means an individual, a corporation, a partnership, a 75 Raised Bill No. 1049
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111	111
112	112	LCO No. 4504 4 of 6
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114	114	limited liability company, an association, a joint stock company, a 76
115	115	business trust, an unincorporated organization or other legal entity. 77
116	116	(17) "Policy" means any document, including attached endorsements 78
117	117	and riders, purporting to be an enforceable contract, which 79
118	118	memorializes in writing some or all of the terms of an insurance 80
119	119	contract. 81
120	120	(18) "State" means any state, district, or territory of the United States. 82
121	121	(19) "Subsidiary" of a specified person means an affiliate controlled 83
122	122	by the person directly, or indirectly through one or more intermediaries. 84
123	123	(20) "Unauthorized insurer" or "nonadmitted insurer" means an 85
124	124	insurer that has not been granted a certificate of authority by the 86
125	125	commissioner to transact the business of insurance in this state or an 87
126	126	insurer transacting business not authorized by a valid certificate. 88
127	127	(21) "United States" means the United States of America, its territories 89
128	128	and possessions, the Commonwealth of Puerto Rico and the District of 90
129	129	Columbia. 91
130	130	Sec. 2. (NEW) (Effective January 1, 2022) (a) For the purposes of this 92
131	131	section: 93
132	132	(1) "Health carrier" has the same meaning as provided in section 38a-94
133	133	1080 of the general statutes; 95
134	134	(2) "High deductible health plan" has the same meaning as that term 96
135	135	is used in subsection (f) of section 38a-493 of the general statutes and 97
136	136	subsection (f) of section 38a-520 of the general statutes; and 98
137	137	(3) "Qualified high deductible health plan" means a high deductible 99
138	138	health plan that imposes an annual deductible that is not less than the 100
139	139	minimum amount necessary for the high deductible health plan to 101
140	140	qualify as a high deductible health plan, regardless of whether the high 102
141	141	deductible health plan (A) is used to establish a medical savings account 103
142	142	or an Archer MSA pursuant to Section 220 of the Internal Revenue Code 104 Raised Bill No. 1049
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146	146	LCO No. 4504 5 of 6
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148	148	of 1986, or any subsequent corresponding internal revenue code of the 105
149	149	United States, as amended from time to time, or a health savings account 106
150	150	pursuant to Section 223 of said Internal Revenue Code, as amended 107
151	151	from time to time, or (B) caps annual out-of-pocket expenses in the 108
152	152	amount specified by the Internal Revenue Service, or any successor 109
153	153	agency, for high deductible health plans. 110
154	154	(b) Notwithstanding any provision of the general statutes, each 111
155	155	health carrier that delivers, issues for delivery, renews, amends or 112
156	156	continues a qualified high deductible health plan in this state on or after 113
157	157	January 1, 2022, shall apply the annual deductible for such qualified 114
158	158	high deductible health plan on a calendar year basis. 115
159	159	(c) The provisions of subsection (b) of this section shall apply to a 116
160	160	qualified high deductible health plan to the maximum extent permitted 117
161	161	by federal law, except if the qualified high deductible health plan is used 118
162	162	to establish a medical savings account or an Archer MSA pursuant to 119
163	163	Section 220 of the Internal Revenue Code of 1986, or any subsequent 120
164	164	corresponding internal revenue code of the United States, as amended 121
165	165	from time to time, or a health savings account pursuant to Section 223 122
166	166	of said Internal Revenue Code, as amended from time to time, the 123
167	167	provisions of said subsection shall apply to the maximum extent that 124
168	168	does not disqualify such account for the deductions allowed under said 125
169	169	sections. 126
170	170	(d) The commissioner may adopt regulations, in accordance with the 127
171	171	provisions of chapter 54 of the general statutes, to implement the 128
172	172	provisions of this section. 129
173	173	This act shall take effect as follows and shall amend the following
174	174	sections:
175	175
176	176	Section 1 January 1, 2022 38a-1
177	177	Sec. 2 January 1, 2022 New section
178	178	Raised Bill No. 1049
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182	182	LCO No. 4504 6 of 6
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184	184	Statement of Purpose:
185	185	To require certain high deductible health plans to apply annual
186	186	deductibles on a calendar year basis.
187	187	[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except
188	188	that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not
189	189	underlined.]
190	190