Connecticut Senate Bill SB00823

Connecticut 2025 Regular Session

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

Caption

An Act Limiting Recovery Of Claims For Behavioral Health Conditions.

Impact

The implementation of SB00823 would bring significant changes to the relationship between health insurers and behavioral health providers. By limiting the time frame in which insurers can pursue recovery claims, the bill supports the financial stability of such providers and may encourage them to offer services without the fear of unexpected financial repercussions. It reinforces the accountability of health insurers in their claims processes, which could, in turn, impact how insurers manage their billing and reimbursement protocols.

Summary

SB00823 is a proposed act that seeks to amend title 38a of the general statutes regarding health insurance claims related to behavioral health conditions. The bill stipulates that health insurers are prohibited from seeking recovery from behavioral health providers for overpayment of claims unless they provide notice to the providers within two years of receiving the initial claim for payment. This aims to protect behavioral health providers from prolonged financial liability and ensure they are notified in a timely manner about any alleged overpayments.

Contention

While the bill is largely viewed as a protective measure for behavioral health providers, it may encounter opposition, particularly from health insurers who may argue that the limitation on their ability to recoup overpayments may lead to financial losses or undermine their operational capabilities. The debate around the balance of financial responsibility between insurers and healthcare providers may emerge, with advocates for both sides presenting their arguments regarding the fairness and sustainability of the proposed changes.