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 Section 38a-1 of the general statutes is repealed and the 1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