Insurance and Real Estate Committee
JOINT FAVORABLE REPORT
Bill No.: SB-1051
AN ACT ESTABLISHING A TASK FORCE TO STUDY MEDICAL PRACTICE
Title: OWNERSHIP MODELS.
Vote Date: 3/22/2021
Vote Action: Joint Favorable
PH Date: 3/18/2021
File No.:
Disclaimer: The following JOINT FAVORABLE Report is prepared for the benefit of the
members of the General Assembly, solely for purposes of information, summarization and
explanation and does not represent the intent of the General Assembly or either chamber
thereof for any purpose.
SPONSORS OF BILL:
Sen. Saud Anwar, 3rd Dist.
Rep. Travis Simms, 140th Dist.
REASONS FOR BILL:
This bill would create a task force to convene various stakeholders including patient
advocates, economic experts, public health experts, policymakers and other state officials, a
handful of medical providers, and others to study the corporate practice of medicine doctrine,
health carrier ownership of medical practices located in this state and medical practice
ownership models that ensure the integrity of medical judgments, optimize patient outcomes
and minimize corporate influence.
RESPONSE FROM ADMINISTRATION/AGENCY:
None Expressed
NATURE AND SOURCES OF SUPPORT:
CT Hospital Association (CHA) stated they believe broader stakeholder representation is
needed. It is important to acknowledge that, since early 2020, Connecticuts hospitals and
health systems have been at the center of the global public health emergency, acting as the
critical partner in the states response to COVID-19. Hospitals expanded critical care
capacity, stood up countless community COVID-19 testing locations, and are a critical
component of the vaccine distribution plan. Through it all, hospitals and health systems have
continued to provide high-quality care for everyone, regardless of ability to pay.
NATURE AND SOURCES OF OPPOSITION:
Michelle Rakebrand,Senior Govt Relations Director,Connecticare stated they encourage
this proposal to be looked at more closely before enacting legislation. We oppose the general
concept and the unilateral composition of the task force. If the underlying premise of this bill
were enacted, it would disallow insurance companies from having ownership in medical
practices in this state. Health insurance companies do not invest in medical practices to
increase profit margins, they invest as a cost saving mechanism. Insurance carriers want to
compensate doctors based on the health quality metrics they achieve; not how many
procedures are performed. Ownership in medical practices help improve health care services
and rein in spending. While ConnectiCare is supportive of an appointed task force to study
the proposed concept, the slanted composition of the task force outlined in this bill will not
yield impartial recommendations. Of the sixteen person task force, 25% of members
represent physician interests. Yet there is no health insurance carrier representation on the
task force. For an unbiased study to be conducted, carriers must have the same number of
appointed members as providers to ensure all stakeholders are adequately represented.
Reported by: Diane Kubeck Date: March 29,2021
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