Connecticut Senate Bill SB00979

Connecticut 2011 Regular Session

• Introduced: 2/16/11
• Refer: 2/16/11
• Report Pass: 3/17/11
• Refer: 3/25/11
• Report Pass: 3/31/11

Caption

An Act Concerning The Assessment Methodology Used By The Insurance Department And The Office Of The Healthcare Advocate.

Impact

The implications of SB00979 on state laws include a more equitable approach to funding the Insurance Department and the Office of the Healthcare Advocate by tying assessment rates directly to the actual expenditures these bodies incur. By redefining how assessments are calculated, the bill could result in changes in financial obligations for domestic insurance companies. This method aims to alleviate unnecessary burdens on those entities, potentially improving the overall operational efficiency of the state's insurance oversight mechanisms.

Summary

SB00979 proposes changes to the assessment methodology utilized by the Insurance Department and the Office of the Healthcare Advocate. The bill aims to reform how domestic insurance companies are assessed for contributions towards the operational costs of these state entities, focusing particularly on aligning assessments with actual expenditures. Starting July 1, 2011, the assessments would be calculated based on direct written insurance premiums and subscriber charges, excluding foreign entities. This reform intends to streamline funding for insurance oversight and advocacy operations, ensuring that state resources reflect the demands placed upon them by insurance operations within Connecticut.

Sentiment

The sentiment surrounding SB00979 appears to be cautiously optimistic among proponents who view the bill as a necessary adjustment to align state operations with the realities of insurance management. Supporters advocate that this bill will enhance efficiency and fairness in assessments, while critics might raise concerns regarding the financial implications for domestic insurers or question the adequacy of the funding for crucial programs overseen by the departments. Overall, there’s a sense that reforming the funding model could lead to better governance and resource allocation in health insurance oversight.

Contention

While the bill has garnered support for its rationale, it also faces scrutiny regarding its execution. A notable point of contention is ensuring that the recalculated assessments do not disproportionately impact smaller domestic insurance entities that may struggle under increased financial obligations. Furthermore, opposition may arise regarding the potential delays or confusion in the re-assessment processes, particularly how adjustments would be communicated and enforced among affected companies. These concerns highlight the need for clear guidelines and transparency in the assessment process to maintain industry stability.