Bill > HB07126

This bill modifies state law regarding health insurance for state employees by introducing new requirements for third-party administrators (entities that manage health insurance processes like claims and premiums) in state employee health plans. Specifically, these administrators must now provide multiple advance written notices (at 90, 60, and 30 days) to state leadership, including the Comptroller, legislative leaders, and the Health Care Cost Containment Committee, before terminating agreements with hospitals or healthcare provider groups. If a third-party administrator terminates such a participating provider agreement, they may be prohibited from participating in future competitive selection processes for state health insurance contracts for up to five years, though the State Comptroller retains discretion to reduce this prohibition period. The bill also allows the Comptroller to suspend a competitive selection process if the terminated parties reach a new agreement within 30 days of the termination notice. These provisions aim to increase transparency and provide more advanced warning about potential disruptions in healthcare provider networks for state employees, while creating a potential penalty for administrators who abruptly end provider agreements. The bill is set to take effect on July 1, 2025.

Government Affairs

Government Administration and Elections Committee (J)

https://www.cga.ct.gov/asp/cgabillstatus/cgabillstatus.asp?selBillType=Bill&bill_num=HB07126&which_year=2025