House Bill No. 7117 proposes significant changes to the funding structure of the Insurance Fund and the General Fund, particularly concerning the public health fee and the Office of Health Strategy. The bill repeals and replaces subsection (b) of section 19a-7p of the general statutes, which previously required domestic insurers and health care centers to pay an annual public health fee to the Insurance Fund. The new provisions mandate that starting July 1, 2025, the Insurance Commissioner will reduce the public health fee deposited into the Insurance Fund by one-fifth each fiscal year, ultimately redirecting the entire fee to the General Fund by July 1, 2029. Additionally, insurers and health care centers will be required to report the number of insured lives annually, with penalties for late submissions or discrepancies.

Moreover, the bill establishes a new section that mandates the transfer of payments for the Office of Health Strategy from the Insurance Fund to the General Fund over the same five-year period, also in one-fifth increments starting July 1, 2025. This transfer will be conducted in consultation with the Office of Policy and Management and the revenue services commissioner. The bill aims to streamline funding for public health initiatives while adjusting the financial responsibilities of domestic insurers and health care centers, resulting in significant revenue losses for the Insurance Fund and corresponding gains for the General Fund. The effective date of the bill is upon passage, with specific provisions related to the Office of Health Strategy funding transfer taking effect on July 1, 2025.