Colorado Legislative Council Staff

NO FISCAL IMPACT

TITLE:            CONCERNING THE REGULATION OF HEALTH CARE COVERAGE.

Summary of Assessment

            This bill makes changes to the regulation of sickness and accident insurance carriers and health care insurance coverage, by the Division of Insurance, Department of Regulatory Agencies. The bill changes: (1) current statutory limitations on the ceding of small employer carrier's small group risks; and (2) current statutory provisions requiring group health carriers to provide continued coverage and guaranteed conversion following an employee's termination of employment. Modifications to these current statutory limitations/provisions include:

            •   eliminating the requirement for small employer carriers of sickness and accident insurance to retain at least 50 percent of their small group risk allowing them to enter into unlimited ceding arrangements;

            •   adding language to group health care guaranteed continuation and conversion statutes to conform to recent state and federal reforms; and

            •   providing greater consumer protection with respect to coverage continuation.

            The bill would become effective upon signature of the Governor.

            The provisions of the bill would not have any impact on the Division of Insurance workload, nor on any other agency of the state, or unit of local government. Therefore, this bill is assessed as having no fiscal impact.

Departments Contacted

            Regulatory Agencies