SB 843 — AN ACT CONCERNING THE REGULATION OF INSURANCE IN THIS STATE.

Senate General Assembly RaisedFile Bill No.

843315 January Session, 2021 LCOSenate Bill No.

2689843 ReferredtoCommitteeonINSURANCESenate, ANDREALApril ESTATE7, Introduced2021 by:The Committee on Insurance and Real Estate reported through SEN.

(INS)LESSER ANof ACTthe CONCERNING9th THEDist., REGULATIONChairperson OFof INSURANCEthe INCommittee THISon STATE.the part of the Senate, that the bill ought to pass.

AN ACT CONCERNING THE REGULATION OF INSURANCE IN THIS STATE.

(b) Nothing in this section shall prohibit an insurance company, fraternalSB843 benefit/ society,File hospital service corporation, medical service LCO 2689 \\PRDFS1\SCOUSERS\FORZANOF\WS\2021SB-00843-R011 of 4 SB.docx Raised Bill No.

843315 corporation,1 healthSB843 careFile centerNo. or other entity in this state issuing Medicare supplement insurance policies or certificates from using its usual and customary underwriting procedures, provided no such company, society, corporation, center or other entity shall issue a Medicare supplement policy or certificate based on the age, gender, previous claims history or the medical condition of the applicant.

315 fraternal benefit society, hospital service corporation, medical service corporation, health care center or other entity in this state issuing Medicare supplement insurance policies or certificates from using its usual and customary underwriting procedures, provided no such company, society, corporation, center or other entity shall issue a Medicare supplement policy or certificate based on the age, gender, previous claims history or the medical condition of the applicant.

LCOSB843 2689/ {\\PRDFS1\SCOUSERS\FORZANOF\WS\2021SB-00842File of 4 R01-SB.docx } Raised Bill No.

843315 (f)2 EachSB843 insuranceFile company,No. fraternal benefit society, hospital service corporation, medical service corporation, health care center or other entity in the state issuing Medicare supplement policies or certificates shall make all necessary arrangements with the Medicare Part B carrier and all Medicare Part A intermediaries to allow for the forwarding, to the issuing entity, of all Medicare claims containing the name of the entity issuing a Medicare supplement policy or certificate and the identification number of an insured.

315 (f) Each insurance company, fraternal benefit society, hospital service corporation, medical service corporation, health care center or other entity in the state issuing Medicare supplement policies or certificates shall make all necessary arrangements with the Medicare Part B carrier and all Medicare Part A intermediaries to allow for the forwarding, to the issuing entity, of all Medicare claims containing the name of the entity issuing a Medicare supplement policy or certificate and the identification number of an insured.

LCOSB843 2689/ {\\PRDFS1\SCOUSERS\FORZANOF\WS\2021SB-00843-3File of 4 R01-SB.docx } Raised Bill No.

843315 This3 actSB843 shallFile takeNo. effect as follows and shall amend the following sections:

315 This act shall take effect as follows and shall amend the following sections:

2 June 30, 2021 38a-688a(a) INS Joint Favorable LCOSB843 2689/ R01-SB.docxFile }OUSERS\FORZANOF\WS\2021SB-00843-No. 4 of 4

315 4 SB843 File No.

315 The following Fiscal Impact Statement and Bill Analysis are prepared for the benefit of the members of the General Assembly, solely for purposes of information, summarization and explanation and do not represent the intent of the General Assembly or either chamber thereof for any purpose.

In general, fiscal impacts are based upon a variety of informational sources, including the analyst’s professional knowledge.

Whenever applicable, agency data is consulted as part of the analysis, however final products do not necessarily reflect an assessment from any specific department.

OFA Fiscal Note State Impact:

None Municipal Impact:

None Explanation There is no fiscal impact to the state or municipalities anticipated from the bill, which makes changes related to the provision of different types of Medigap policies by insurers and extends the sunset date for the personal risk insurance “flex rating” law by four years.

The latter change has no impact to the Insurance Department as it extends current practice.

The Out Years State Impact:

None Municipal Impact:

None Sources:

Connecticut Insurance Department SB843 / File No.

315 5 SB843 File No.

315 OLR Bill Analysis SB 843 AN ACT CONCERNING THE REGULATION OF INSURANCE IN THIS STATE.

SUMMARY This bill makes changes to two unrelated insurance statutes concerning Medicare supplement (Medigap) plans and the property and casualty “flex rating” law.

The bill allows insurers, HMOs, and other related entities to issue Medigap policies and certificates for plan D, in addition to plans A, B, and C as under existing law.

(These are standardized plans for which the federal government sets the benefits.

Medigap plans generally cover certain expenses that Medicare does not cover.) By law, those entities that issue Medigap plans A, B, or C to people eligible for Medicare based on age must also offer them to people eligible for Medicare based on disability.

The bill extends this requirement to entities that issue plan D.

The bill exempts entities from offering plan C to any person newly eligiblefor Medicare.

(AsofJanuary 1,2020,federallawrestrictsthesale of plan C to those eligible for Medicare before that date.) Additionally, the bill extends the sunset date for the personal risk insurance (e.g., home, auto, marine, or umbrella) “flex rating” law from July 1, 2021, to July 1 , 2025.

The flex rating law allows property and casualty insurers, until the law sunsets, to file new personal risk insurance rates with the insurance commissioner and begin using them immediately, without prior approval, under certain circumstances.

Under the current flex rating law, a personal risk insurance rate cannot(1)increaseordecreasebymorethan6%statewideor(2)increase SB843 / File No.

315 6 SB843 File No.

315 by more than 15% in any individual territory.