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General Assembly Raised Bill No. 1217
January Session, 2023
LCO No. 4750
Referred to Committee on APPROPRIATIONS
Introduced by:
(APP)
AN ACT CONCERNING PAYMENTS BY INSURANCE COMPANIES
FOR DEPOSIT INTO THE INSURANCE FUND.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:
Section 1. Section 38a-47 of the general statutes is repealed and the 1
following is substituted in lieu thereof (Effective July 1, 2023): 2
(a) All domestic insurance companies and other domestic entities 3
subject to taxation under chapter 207, except as provided in subdivisions 4
(2) and (3) of this subsection, shall, in accordance with section 38a-48, as 5
amended by this act, annually pay to the Insurance Commissioner, for 6
deposit in the Insurance Fund established under section 38a-52a, an 7
amount equal to: 8
(1) The actual expenditures made by the Insurance Department 9
during each fiscal year; [, and the actual expenditures made by the 10
Office of the Healthcare Advocate, including the cost of fringe benefits 11
for department and office personnel as estimated by the Comptroller;] 12
(2) For only domestic insurance companies, including domestic 13
health care centers, that have written policies of health insurance, as 14 Raised Bill No. 1217
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defined in section 38a-469, in this state during the preceding calendar 15
year, the actual expenditures made by the Office of the Healthcare 16
Advocate, including the cost of fringe benefits for department and office 17
personnel as estimated by the Comptroller; 18
[(2) The] (3) For only domestic insurance companies, including 19
domestic health care centers, that have written policies of health 20
insurance, as defined in section 38a-469, in this state during the 21
preceding calendar year, the amount appropriated to the Office of 22
Health Strategy from the Insurance Fund for the fiscal year, including 23
the cost of fringe benefits for office personnel as estimated by the 24
Comptroller, which shall be reduced by the amount of federal 25
reimbursement received for allowable Medicaid administrative 26
expenses; 27
[(3)] (4) The expenditures made on behalf of the department and said 28
offices from the Capital Equipment Purchase Fund pursuant to section 29
4a-9 for such year, but excluding such estimated expenditures made on 30
behalf of the Health Systems Planning Unit of the Office of Health 31
Strategy; and 32
[(4)] (5) The amount appropriated to the Department of Aging and 33
Disability Services for the fall prevention program established in section 34
17a-859 from the Insurance Fund for the fiscal year. 35
(b) The expenditures and amounts specified in subdivisions (1) to 36
[(4)] (5), inclusive, of subsection (a) of this section shall exclude 37
expenditures paid for by fraternal benefit societies, foreign and alien 38
insurance companies and other foreign and alien entities under sections 39
38a-49 and 38a-50. 40
(c) Payments shall be made by assessment of all such domestic 41
insurance companies and other domestic entities calculated and 42
collected in accordance with the provisions of section 38a-48, as 43
amended by this act. Any such domestic insurance company or other 44
domestic entity aggrieved because of any assessment levied under this 45
section may appeal therefrom in accordance with the provisions of 46 Raised Bill No. 1217
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section 38a-52. 47
Sec. 2. Subsections (a) to (c), inclusive, of section 38a-48 of the general 48
statutes are repealed and the following is substituted in lieu thereof 49
(Effective July 1, 2023): 50
(a) (1) On or before June thirtieth, annually, the Commissioner of 51
Revenue Services shall render to the Insurance Commissioner a 52
statement certifying the amount of taxes or charges imposed on each 53
domestic insurance company or other domestic entity under chapter 207 54
on business done in this state during the preceding calendar year. The 55
statement for local domestic insurance companies shall set forth the 56
amount of taxes and charges before any tax credits allowed as provided 57
in subsection (a) of section 12-202. 58
(2) Upon receipt of the statement described in subdivision (1) of this 59
subsection, the Insurance Commissioner shall prepare a statement of the 60
amount of taxes or charges imposed on each domestic insurance 61
company or other domestic entity under chapter 207 that wrote policies 62
of health insurance, as defined in section 38a-469, in this state. Such 63
amount shall be that as certified by the Commissioner of Revenue 64
Services in accordance with subdivision (1) of this subsection. 65
(b) On or before July thirty-first, annually, the Insurance 66
Commissioner and the Office of the Healthcare Advocate shall render 67
to each domestic insurance company or other domestic entity liable for 68
payment under section 38a-47, as amended by this act: 69
(1) A statement that includes, as separate line items, for the fiscal year 70
beginning July first of the year such statement is rendered: (A) [the] The 71
amount appropriated to the Insurance Department [,] from the 72
Insurance Fund established under section 38a-52a, (B) the amount 73
appropriated to the Office of the Healthcare Advocate [and] from the 74
Insurance Fund; (C) the amount appropriated to the Office of Health 75
Strategy from the Insurance Fund, [established under section 38a-52a 76
for the fiscal year beginning July first of the same year, (B)] (D) the cost 77
of fringe benefits for department and office personnel, [for such year,] 78 Raised Bill No. 1217
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as estimated by the Comptroller, [(C)] (E) the estimated expenditures on 79
behalf of the department and the offices from the Capital Equipment 80
Purchase Fund pursuant to section 4a-9, [for such year,] not including 81
such estimated expenditures made on behalf of the Health Systems 82
Planning Unit of the Office of Health Strategy, and [(D)] (F) the amount 83
appropriated to the Department of Aging and Disability Services for the 84
fall prevention program established in section 17a-859 from the 85
Insurance Fund; [for the fiscal year;] 86
(2) [a] A statement of (A) (i) the total taxes imposed on all domestic 87
insurance companies and domestic insurance entities under chapter 207 88
on business done in this state during the preceding calendar year, and 89
(ii) each such company's or entity's proportionate share of such total, 90
and (B) (i) the total taxes imposed under chapter 207 on only those 91
domestic insurance companies and entities that provided health 92
insurance, as defined in section 38a-469, in this state during the 93
preceding calendar year, and (ii) each such company's or entity's 94
proportionate share of such total; and 95
(3) [the] The proposed assessment against that company or entity, 96
calculated in accordance with the provisions of subsection (c) of this 97
section, provided for the purposes of this calculation the amount 98
appropriated to the Insurance Department, the Office of the Healthcare 99
Advocate and the Office of Health Strategy from the Insurance Fund 100
plus the cost of fringe benefits for department and office personnel and 101
the estimated expenditures on behalf of the department and the office 102
from the Capital Equipment Purchase Fund pursuant to section 4a-9, 103
not including such expenditures made on behalf of the Health Systems 104
Planning Unit of the Office of Health Strategy shall be deemed to be the 105
actual expenditures of the department and the office, and the amount 106
appropriated to the Department of Aging and Disability Services from 107
the Insurance Fund for the fiscal year for the fall prevention program 108
established in section 17a-859 shall be deemed to be the actual 109
expenditures for the program. 110
(c) (1) The proposed assessments for each domestic insurance 111 Raised Bill No. 1217
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company or other domestic entity shall be calculated by (A) allocating 112
twenty per cent of the amount to be paid under section 38a-47, as 113
amended by this act, among the domestic entities organized under 114
sections 38a-199 to 38a-209, inclusive, and 38a-214 to 38a-225, inclusive, 115
in proportion to their respective shares of the total taxes and charges 116
imposed under chapter 207 on such entities on business done in this 117
state during the preceding calendar year, and (B) allocating eighty per 118
cent of (i) the amount to be paid under subdivisions (1), (4) and (5) of 119
subsection (a) of section 38a-47, as amended by this act, among all 120
domestic insurance companies and domestic entities, and (ii) the 121
amount to be paid under subdivisions (2) and (3) of subsection (a) of 122
section 38a-47, as amended by this act, among only those domestic 123
insurance companies and entities that provided health insurance in this 124
state during the preceding calendar year, in each case other than those 125
organized under sections 38a-199 to 38a-209, inclusive, and 38a-214 to 126
38a-225, inclusive, in proportion to their respective shares of the total 127
taxes and charges imposed under chapter 207 on such domestic 128
insurance companies and domestic entities on business done in this state 129
during the preceding calendar year, provided if there are no domestic 130
entities organized under sections 38a-199 to 38a-209, inclusive, and 38a-131
214 to 38a-225, inclusive, at the time of assessment, one hundred per cent 132
of the amount to be paid under section 38a-47, as amended by this act, 133
shall be allocated among such domestic insurance companies and 134
domestic entities. 135
(2) When the amount any such company or entity is assessed 136
pursuant to this section exceeds twenty-five per cent of the actual 137
expenditures of the Insurance Department, the Office of the Healthcare 138
Advocate and the Office of Health Strategy from the Insurance Fund, 139
such excess amount shall not be paid by such company or entity but 140
rather shall be assessed against and paid by all other such companies 141
and entities in proportion to their respective shares of the total taxes and 142
charges imposed under chapter 207 on business done in this state during 143
the preceding calendar year, except that for purposes of any assessment 144
made to fund payments to the Department of Public Health to purchase 145 Raised Bill No. 1217
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vaccines, such company or entity shall be responsible for its share of the 146
costs, notwithstanding whether its assessment exceeds twenty-five per 147
cent of the actual expenditures of the Insurance Department, the Office 148
of the Healthcare Advocate and the Office of Health Strategy from the 149
Insurance Fund. The provisions of this subdivision shall not be 150
applicable to any corporation which has converted to a domestic mutual 151
insurance company pursuant to section 38a-155 upon the effective date 152
of any public act which amends said section to modify or remove any 153
restriction on the business such a company may engage in, for purposes 154
of any assessment due from such company on and after such effective 155
date. 156
This act shall take effect as follows and shall amend the following
sections:
Section 1 July 1, 2023 38a-47
Sec. 2 July 1, 2023 38a-48(a) to (c)
Statement of Purpose:
To realign the structure of payments by insurance companies into the
Insurance Fund.
[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.]