SB 1003 — AN ACT PROHIBITING CERTAIN HEALTH CARRIERS AND PHARMACY BENEFITS MANAGERS FROM EMPLOYING COPAY ACCUMULATOR PROGRAMS.
Last action — SIGNED BY GOVERNOR
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✓Introduced
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✓In Committee
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✓Passed Senate
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✓Passed House
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✓To Executive
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6Enacted
This bill has been enacted into law. Introduced March 04, 2021. Enacted.
Odds of enactment
High chanceBased on the sponsor, cosponsors, and committee posture, this bill has a high chance of becoming law.
Upgrade to see the exact probability and what's driving it.
A statistical estimate from our own model of past outcomes — an insight, not a guarantee. Policymaking is volatile.
Prognosis
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Enacted
Current position in the legislative process.
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9 sponsors
9 primary, 0 co-sponsors signed on.
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Single-party support
Sponsorship is currently within one party (6 D).
Based on stage, sponsorship breadth, committee status, recorded votes, and cross-state momentum — a description of the observable signals, not a prediction.
Bill Text
What changed in the latest version
177 added · 256 removed177 line(s) added, 256 removed.
Senate GeneralBill Assembly File No.
3631003 JanuaryPublic Session,Act 2021 Senate Bill No.
100321-14 Senate,AN AprilACT 8,PROHIBITING 2021CERTAIN TheHEALTH CommitteeCARRIERS onAND InsurancePHARMACY andBENEFITS RealMANAGERS EstateFROM reportedEMPLOYING throughCOPAY SEN.ACCUMULATOR PROGRAMS.
LESSER of the 9th Dist., Chairperson of the Committee on the part of the Senate, that the bill ought to pass.
AN ACT PROHIBITING CERTAIN HEALTH CARRIERS AND PHARMACY BENEFITS MANAGERS FROM EMPLOYING COPAY ACCUMULATOR PROGRAMS.
SB1003(3) /"Annuities" Filemeans No.all agreements to make periodical payments where the making or continuance of all or some of the series of the payments, or the amount of the payment, is dependent upon the continuance of human life or is for a specified term of years.
363This 1Senate SB1003Bill File No.
3631003 (3)definition "Annuities"does meansnot allapply agreements to make periodical payments wheremade theunder makinga orpolicy continuance of all or some of the series of the payments, or the amount of the payment, is dependent upon the continuance of human life orinsurance. is for a specified term of years.
This definition does not apply to payments made under a policy of life insurance.
For purposes of this subdivision "liabilities" shall include but not be limited to reserves required by statute or by regulations adopted by SB1003the /commissioner Filein accordance with the provisions of chapter 54 or Public Act No.
36321-14 2 SB1003of File7 Senate Bill No.
3631003 the commissioner in accordance with the provisions of chapter 54 or specific requirements imposed by the commissioner upon a subject company at the time of admission or subsequent thereto.
(15)Public "MutualAct insurer"No. means any insurer without capital stock, the managing directors or officers of which are elected by its members.
SB100321-14 /3 Fileof 7 Senate Bill No.
3631003 3(15) SB1003"Mutual Fileinsurer" No.means any insurer without capital stock, the managing directors or officers of which are elected by its members.
363 (16) "Person" means an individual, a corporation, a partnership, a limited liability company, an association, a joint stock company, a business trust, an unincorporated organization or other legal entity.
(21) "United States" means the UnitedUnitedStates States of America, its territories and possessions, the Commonwealth of Puerto Rico and the District of Columbia.
(NEW) (Effective January 1, 2022) Each insurer, health care center, hospital service corporation, medical service corporation, fraternal benefit society or other entity that delivers, issues for delivery, renews, amends or continues an individual or group health insurance policy in this state on or after January 1, 2022, providing coverage of the type specified in subdivisions (1), (2), (4), (11) and (12) of section 38a-469 of the general statutes shall, when calculating an insured's liability for a coinsurance, copayment, deductible or other out-of-pocket expense for a covered benefit, give credit for any paymentdiscount madeprovided by a third party for the amount of, or anypayment portionPublic ofAct theNo. amount of, the coinsurance, copayment, deductible or other out-of-pocket expense for the covered benefit.
21-14 4 of 7 Senate Bill No.
1003 made by a third party for the amount of, or any portion of the amount of, the coinsurance, copayment, deductible or other out-of-pocket expense for the covered benefit.
SB1003As /used Filein No.this section, sections 38a-478a to 38a-478o, inclusive, [and] subsection (a) of section 38a-478s and section 4 of this act:
363 4 SB1003 File No.
363 As used in this section, sections 38a-478a to 38a-478o, inclusive, [and] subsection (a) of section 38a-478s and section 4 of this act:
(C) financial incentives for enrolleestousetheparticipatingprovidersandproceduresprovidedfor byPublic theAct plan;No.
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1003 by the plan;
(8) "Provider" or "health care provider" means a person licensed to SB1003provide /health Filecare No.services under chapters 370 to 373, inclusive, 375 to 383c, inclusive, 384a to 384c, inclusive, or chapter 400j.
363 5 SB1003 File No.
363 provide health care services under chapters 370 to 373, inclusive, 375 to 383c, inclusive, 384a to 384c, inclusive, or chapter 400j.
(NEW) (Effective January 1, 2022) For any contract delivered, issued for delivery, renewed, amended or continued in this state on or after January 1, 2022, each managed care organization shall, when calculating an enrollee's liability for a coinsurance, copayment, deductible or other out-of-pocket expense for a covered benefit, give credit for any discount provided or payment made by a third party for the amount of, or any portion of the amount of, the coinsurance, copayment, deductible or other out-of-pocket expense for the covered benefit.
(NEW) (Effective January 1, 2022) On and after January 1, 2022, each contract entered into between a health carrier, as defined in section 38a-591a of the general statutes, and a pharmacy benefits manager, as defined in section 38a-479aaa of the general statutes, for the administration of the pharmacy benefit portion of a health benefit plan in this state on behalf of plan sponsors shall require that the pharmacy benefitsmanager,whencalculatinganinsured'sorenrollee'sliabilityforPublic acoinsurance,Act copayment,deductibleorotherout-of-pocketexpenseforNo. a covered prescription drug benefit, give credit for any payment made by a third party for the amount of, or any portion of the amount of, the coinsurance, copayment, deductible or other out-of-pocket expense for the covered prescription drug benefit.
This21-14 act6 shallof take7 effectSenate asBill followsNo. and shall amend the following sections:
Section1003 1benefitsmanager,whencalculatinganinsured'sorenrollee'sliabilityfor Januaryacoinsurance, 1,copayment,deductibleorotherout-of-pocketexpensefor 2022a 38a-1covered Sec.prescription drug benefit, give credit for any discount provided or payment made by a third party for the amount of, or any portion of the amount of, the coinsurance, copayment, deductible or other out-of-pocket expense for the covered prescription drug benefit.
2Approved JanuaryJune 1,2, 20222021 NewPublic sectionAct Sec.No.
321-14 January7 1,of 20227 38a-478 Sec.
4 January 1, 2022 New section SB1003 / File No.
363 6 SB1003 File No.
363 Sec.
5 January 1, 2022 New section INS Joint Favorable SB1003 / File No.
363 7 SB1003 File No.
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363 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:
Agency Affected Fund-Effect FY 22 $ FY 23 $ State Comptroller - Fringe GF - Potential Minimal Minimal Benefits Cost Note:
GF=General Fund Municipal Impact:
Municipalities Effect FY 22 $ FY 23 $ Various Municipalities Potential Minimal Minimal Cost Explanation The bill prohibits health carriers and pharmacy benefits managers from using copay accumulator programs, thereby potentially increasing the cost of providing benefits to the state employee and retiree health plan and municipalities.
Copay accumulator programs prohibit manufacturer coupons that are provided to enrollees by prescription manufacturers from being appliedtotheoutofpocketcostforthebrandnamedrug.Byprohibiting such programs, the billmay increase costs depending on thenegotiation of contracts between the state and municipalities and their respective pharmacy benefit managers .
Any increased cost will be reflected in premiums for plan years starting on and after January 1, 2022.
It is anticipated that the net impact to premiums as a result of the bill will be minimal relative to the overall employer share of the premium.
1There is evidence that the price of couponed drugs rises at a faster rate than non- couponed drugs.
Medicare does not permit manufacturer coupons.
SB1003 / File No.
363 8 SB1003 File No.
363 The Out Years The annualized ongoing fiscal impact identified above would continue into the future subject to the utilization of coupons used for brand name drugs by state and municipal enrollees.
SB1003 / File No.
363 9 SB1003 File No.
363 OLR Bill Analysis SB 1003 AN ACT PROHIBITING CERTAIN HEALTH CARRIERS AND PHARMACY BENEFITS MANAGERS FROM EMPLOYING COPAY ACCUMULATOR PROGRAMS.
SUMMARY This bill requires certain health carriers and pharmacy benefits managers, when calculating a covered individual’s cost sharing liability (e.g., coinsurance, copayment, deductible) for a covered benefit, to credit payments by a third party for any portion of the cost sharing.
Thus, the bill prohibits copay accumulator programs, under which drug manufacturer coupons and copay assistance generally do not apply toward a covered individual’s cost-sharing responsibility.
The bill applies to each insurer, hospital or medical service corporation, HMO, or fraternal benefit society that delivers, issues, renews, amends, or continues in Connecticut on or after January 1, 2022, individual or group health insurance policies that cover (1) basic hospitalexpenses;(2)basicmedical-surgicalexpenses;(3)majormedical expenses;
or (4) hospital or medical services, including those provided under an HMO plan.
It also applies to managed care organizations that deliver, issue, renew, amend, or continue contracts in Connecticut on or after January 1, 2022, and pharmacy benefit managers entering into contracts with health carriers on or after that date.
EFFECTIVE DATE:
January 1, 2022 COMMITTEE ACTION Insurance and Real Estate Committee Joint Favorable Yea 18 Nay 0 (03/22/2021) SB1003 / File No.
363 10
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View plain text versions (4)
- Chaptered Public Act No. 21-14 Current pdf
- File No. 363 View text pdf
- INS Joint Favorable View text pdf
- Raised Bill View text pdf
Action History
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SIGNED BY GOVERNOR
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TRANSMITTED BY SECRETARY OF THE STATE TO GOVERNOR
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TRANSMITTED TO SECRETARY OF THE STATE
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PUBLIC ACT 21-14
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IN CONCURRENCE
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HOUSE PASSED, SEN. AMEND. SCH. A
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HOUSE REJECTED HOUSE AMEND. SCH. B
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HOUSE REJECTED HOUSE AMEND. SCH. A
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HOUSE ADOPTED SEN. AMEND. SCH. A
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HOUSE CALENDAR NUMBER 448
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FAV. RPT., TABLED FOR HOUSE CALENDAR
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ON CONSENT CALENDAR
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SEN. PASSED, SEN. AMEND. SCH. A
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SEN. ADOPTED SEN. AMEND. SCH. A
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FILE NO. 363
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SENATE CALENDAR NUMBER 230
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FAV. RPT., TAB. FOR CAL., SEN.
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RPTD. OUT OF LCO
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REFERRED TO Office of Legislative Research AND Office of Fiscal Analysis 04/07/21
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FILED WITH LCO
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Joint Favorable
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PUBLIC HEARING 0309
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REF. TO JOINT COMM. ON Insurance and Real Estate
Sponsors
- Jane M. Garibay · Primary
- Emmett D. Riley · Primary
- Michelle L. Cook · Primary
- Jillian Gilchrest · Primary
- Eleni Kavros DeGraw · Primary
- Stephanie Thomas · Primary
- Kara Rochelle · Primary
- Martin M. Looney · Primary
- Saud Anwar · Primary
Sponsorship breakdown
Export CSV (upgrade) →9 sponsors · 0 co-sponsors · 178 not signed on
Sponsors (9)
- Jane M. Garibay Democratic
- Riley, Emmett D.
- Cook, Michelle L.
- Jillian Gilchrest Democratic
- Eleni Kavros DeGraw Democratic
- Thomas, Stephanie
- Kara Rochelle Democratic
- Martin M. Looney Democratic
- Saud Anwar Democratic
Co-sponsors (0)
None.
Not signed on (178)
178 members have not signed on to this bill.
Show all 178 →"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.
Subjects
Frequently asked questions
- Who sponsors SB 1003?
- SB 1003 is sponsored by Jane M. Garibay (Democratic), Riley, Emmett D., Cook, Michelle L., Jillian Gilchrest (Democratic), Eleni Kavros DeGraw (Democratic), Thomas, Stephanie, Kara Rochelle (Democratic), Martin M. Looney (Democratic), and Saud Anwar (Democratic).
- What is the current status of SB 1003?
- This bill has been enacted into law. Introduced March 04, 2021. Enacted.
- Where can I track SB 1003?
- Track SB 1003 free on One Click Politics — get push/email alerts when it moves.
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