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 into 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 section that allows the Insurance Commissioner, in collaboration with the Office of Policy and Management and the Commissioner of Revenue Services, 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. This transfer will also occur in increasing one-fifth increments. The legislation includes provisions for reporting requirements and penalties for late submissions or discrepancies in the reported number of insured lives, ensuring compliance and accountability among insurers and health care centers.