The proposed legislation, General Assembly Raised Bill No. 7117, aims to implement recommendations from the Insurance Fund Working Group by modifying the public health fee structure for domestic insurers and health care centers in Connecticut. The bill repeals the existing subsection (b) of section 19a-7p and introduces new provisions that require these entities to pay an annual public health fee to the Insurance Commissioner, which will be deposited into the Insurance Fund. Notably, starting July 1, 2025, the bill mandates a gradual reduction of the public health fee deposited in the Insurance Fund by one-fifth each fiscal year, with the remaining amount redirected to the General Fund. This reduction will continue until July 1, 2029, when the entire fee will be allocated to the General Fund.

Additionally, the bill establishes a new requirement for insurers and health care centers to report the number of insured or enrolled lives annually, with penalties for late submissions and discrepancies in reporting. It also introduces a new section that allows the Insurance Commissioner to transfer payments for the Office of Health Strategy from the Insurance Fund to the General Fund over a five-year period, starting July 1, 2025, with adjustments to assessments on domestic insurance companies as necessary. Overall, the bill seeks to streamline funding mechanisms while ensuring compliance and accountability among health insurance providers.