OFFICE OF FISCAL ANALYSIS
Legislative Office Building, Room 5200
Hartford, CT 06106 (860) 240-0200
http://www.cga.ct.gov/ofa
sHB-5042
AN ACT CONCERNING HEALTH CARE COST GROWTH.
As Amended by House "A" (LCO 5600)
House Calendar No.: 85
Primary Analyst: CP 4/28/22
Contributing Analyst(s):
OFA Fiscal Note
State Impact: See Below
Municipal Impact: None
Explanation
This bill, which expands the Office of Health Strategy’s (OHS) duties
to include, among other things, setting annual health care cost growth
benchmarks, health care quality benchmarks, and primary care
spending targets, codifying provisions of Executive Order 5, does not
result in a fiscal impact to OHS or municipalities.
The bill, which requires private health carriers in Connecticut to
develop at least two health enhancement programs (HEPs) under their
policies, does not result in a fiscal impact to the state. It is anticipated
that the Insurance Department, which may adopt implementing
regulations under the bill, can review compliance within existing
resources. It is unknown if there will be a fiscal impact to fully insured
municipalities as a result of HEP provisions of the bill.
The bill also changes the CON application fee from $500 to a range of
$1,000 to $10,000 depending on the proposed project's cost. Based on a
four-year average of CON proposals, the bill's fee schedule is
anticipated to generate an additional $100,000 in annual revenue. The
current fee of $500 generates approximately $12,500 annually. This
increase in the application fee results in a cost to UConn Health Center 2022HB-05042-R01-FN.DOCX Page 2 of 2
each time the entity applies for a CON. The health center expects to
apply for one CON in either FY 23 or FY 24. The cost will be equal to the
difference between the current fee ($500) and the new fees based on
project costs ($1,000 to $10,000).
Lastly, the bill adds the executive director of OHS to the statutory
definition of a department head. This has no fiscal impact.
House "A" strikes the original bill and its associated fiscal impact,
thus becoming the bill with the above referenced fiscal impact.
The Out Years
The annualized ongoing fiscal impact identified above would
continue into the future subject to inflation.
The preceding Fiscal Impact statement is prepared for the benefit of the members of the General Assembly, solely
for the purposes of information, summarization and explanation and does not represent the intent of the General
Assembly or either chamber thereof for any purpose. In general, fiscal impacts are based upon a variety of
informational sources, including the analyst’s professional knowledge. Whenever applicable, agency data is
consulted as part of the analysis, however final products do not necessarily reflect an assessment from any
specific department.