Bill Summary: HB 5247 - Employee Health Benefit Consortiums

• Authorizes self-funded multiple employer welfare arrangement (MEWA) trusts sponsored by trade associations to provide health benefit plans to Connecticut employers, effective October 1, 2024.

• Requires MEWA trusts to obtain licensing from the Insurance Commissioner, maintain minimum capital and surplus of $4 million, and comply with all health insurance company requirements under Connecticut law.

• Mandates health benefit plans offer coverage at three actuarial value levels (60%, 68%, and 78%), prohibit preexisting condition exclusions, use modified community rating methodology, and implement value-based health care designs.

• Establishes that participating employers are liable for their allocated share of plan liabilities and jointly and severally liable for any deficits; plans must include prominent disclaimers that they are not insurance and not required to comply with certain federal and state insurance requirements.

• Modifies small employer insurance regulations effective April 1, 2025 to exclude dependents from guaranteed issue and renewability provisions; updates Department of Consumer Affairs jurisdiction to include complaints about health benefit plans and MEWAs.