An Act Concerning The Recommendations Of The Insurance Fund Working Group.
HB 7117 implements recommendations from the Insurance Fund Working Group by changing how certain insurance-related assessments are allocated and collected. The bill amends the public health fee paid by domestic insurers and domestic health care centers doing health insurance business in Connecticut so that, beginning July 1, 2025, one-fifth of the fee is redirected from the Insurance Fund to the General Fund each year. By July 1, 2029, the full amount of the fee would be deposited in the General Fund. The bill also requires annual reporting of insured or enrolled lives, excludes Medicare, Medicaid, workers’ compensation, and Medicare Part C lives from that count, and authorizes late filing fees and civil penalties for inaccurate or untimely reporting.
In addition, the bill creates a new requirement to transfer payment for the Office of Health Strategy from the Insurance Fund to the General Fund over a five-year period starting July 1, 2025, with corresponding adjustments to assessments on domestic insurers or other domestic entities. The Insurance Commissioner, working with the Office of Policy and Management and the Department of Revenue Services, would oversee the transition and make necessary assessment changes. Overall, the bill shifts funding responsibilities away from the Insurance Fund and into the General Fund while preserving the underlying assessment structure on regulated insurers.
The bill appears to have generally favorable committee support, as reflected in joint favorable votes in both the Insurance and Real Estate Committee and the Appropriations Committee. The INS vote was 10-3, and the APP vote was 32-18, suggesting support but not unanimity. The available record does not include transcript debate, so the sentiment can only be inferred from the committee actions and vote margins.
The main points of contention likely concern the redirection of insurance-related revenues from dedicated insurance funding to the General Fund and the phased increase in assessments or fee reallocations over time. Insurers and health care centers may be affected by reporting obligations, potential late fees, and civil penalties for discrepancies in life counts, while policymakers may be weighing whether the General Fund should absorb costs previously supported by the Insurance Fund. The exclusion of Medicare and other public coverage populations from the reporting count is a technical feature that may also matter for how assessments are calculated.
The bill amends Connecticut General Statutes section 19a-7p and adds a new section to phase in a transfer of certain insurance-related revenues from the Insurance Fund to the General Fund. It changes the distribution of the public health fee paid by domestic insurers and domestic health care centers, and it directs the Insurance Commissioner to adjust assessments accordingly over a five-year period. It also reinforces reporting, fee, and penalty provisions tied to the number of insured or enrolled lives, affecting domestic insurers and health care centers that do health insurance business in the state, as well as the Office of Health Strategy and state budget accounts.
The available voting history suggests the bill was viewed positively overall, but with some opposition. Both committees reported the bill favorably, and the vote margins indicate more support than resistance. Because there are no transcript excerpts, there is no direct record of floor or committee arguments, but the pattern suggests the bill was broadly acceptable to committee majorities while still raising concerns for a minority of members.
Likely areas of disagreement include the policy choice to divert money from the Insurance Fund to the General Fund, the effect on dedicated funding for insurance-related purposes, and the administrative burden on insurers and health care centers. Opponents may also have concerns about the phased fee reallocation and the potential for penalties tied to reporting discrepancies, while supporters likely view the bill as a budget and fund-structure adjustment recommended by the Insurance Fund Working Group. The absence of transcript discussion limits certainty, but the vote splits indicate some disagreement over fiscal and regulatory impacts.