The proposed bill, General Assembly Governor's Bill No. 1253, aims to reduce insurance rate premium requests by introducing new regulatory measures for health carriers. Specifically, it amends section 38a-481 of the general statutes to allow the commissioner to reduce a health carrier's requested rate by up to two percentage points if the average premium rate increase for the preceding two years exceeds the established health care cost growth benchmark. This change is intended to ensure that insurance rates remain fair and manageable for consumers. Additionally, the bill modifies section 38a-513 to include similar provisions for small group health insurance policies, allowing the commissioner to reduce requested premium rates under the same conditions.

The bill repeals and substitutes existing language in both sections to incorporate these new provisions, effective January 1, 2026. The changes emphasize the importance of aligning insurance premium rates with health care cost growth, thereby promoting affordability and preventing excessive rate increases. The overall goal of the bill is to implement the Governor's budget recommendations while enhancing consumer protection in the insurance market.