The bill significantly impacts existing state insurance regulations by modifying how health insurance can be offered to small businesses. It repeals certain sections of the general statutes and substitutes them with new provisions that create a framework for association health plans. By allowing more flexibility for associations in providing health coverage, the bill is expected to encourage small businesses to band together to secure better health benefits for their employees. This could potentially lower costs and expand access to necessary healthcare services.
Summary
House Bill 5383, titled 'An Act Concerning Association Health Plans', aims to authorize association health plans within the state to the maximum extent permitted under federal law. The bill specifies the parameters under which association health plans may be formed and operated, allowing sponsoring associations to provide health insurance coverage to their employer members and their employees. This legislation seeks to enhance the availability of health insurance options for small businesses, which often struggle to provide affordable coverage for their employees.
Contention
While the intent of the bill is to broaden access to health insurance for small business employees, concerns have been raised regarding the potential risks associated with such plans. Critics argue that association health plans could lead to decreased consumer protections and a dilution of coverage standards that ensure comprehensive benefits. There is also worry that such a shift may allow healthier individuals to opt into these plans, leaving traditional insurance markets with a higher proportion of individuals needing more extensive care, which could exacerbate existing inequities in the health insurance system.
An Act Prohibiting Certain Health Carriers From Requiring Step Therapy For Prescription Drugs Used To Treat A Mental Or Behavioral Health Condition Or A Chronic, Disabling Or Life-threatening Condition.