Connecticut House Bill HB05759

Connecticut 2025 Regular Session

• Introduced: 1/21/25
• Refer: 1/21/25

Caption

An Act Establishing A Civil Penalty For Delayed Processing Of Health Insurance Claims.

Impact

The introduction of this bill is expected to provide significant protections for consumers and healthcare providers by ensuring timely processing of health insurance claims. By imposing fines on insurance companies that fail to comply with the processing timeline, the bill aims to enhance accountability within the insurance industry, potentially leading to improved financial liquidity for healthcare providers who depend on timely payments. Furthermore, the funds collected from these penalties will be allocated to the Office of the Healthcare Advocate, reinforcing its role in protecting consumer rights in the health insurance landscape.

Summary

House Bill 05759 proposes the establishment of civil penalties for health insurance companies that delay the processing of health insurance claims. Specifically, it mandates that the Insurance Department, in consultation with the Department of Public Health, set a penalty of ten thousand dollars for each violation. The bill stipulates that claims must be processed within five business days of their receipt, and reimbursements to healthcare providers must also occur within five business days following the approval of a claim.

Contention

Notable points of contention surrounding HB 05759 may involve the potential reactions from insurance companies who could argue that the imposed penalties may create undue financial strain or lead to operational challenges. Furthermore, there could be discussions regarding the practicality of enforcing such timelines and the implications for insurance claims assessment processes. Stakeholders in the healthcare sector may express divergent views on whether the bill adequately addresses the complexities of claims processing or if it merely serves as a punitive measure without considering the operational realities of insurance providers.