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SB 451

AN ACT AUTHORIZING A FEE ON HEALTH INSURERS THAT ISSUE MEDICARE ADVANTAGE PLANS IN THE STATE.

2025 Regular Session Introduced by Saud Anwar

Connecticut would levy a fee on insurers offering Medicare Advantage plans, generating state revenue while potentially affecting senior enrollee costs and market competition.

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Bill Summary · SB 451

Legislative bill overview

SB 451 would authorize Connecticut to impose a new fee on health insurance companies that offer Medicare Advantage plans within the state. The fee structure and specific amount would be determined through the legislative process. This represents a state-level tax on a specific line of insurance business rather than a broad insurance tax.

Why is this important

Medicare Advantage plans serve Connecticut seniors and have grown significantly as an alternative to traditional Medicare. The fee could generate state revenue but may affect plan premiums, benefit structures, or insurer participation in the state market. This touches a large population segment—Connecticut has approximately 400,000+ Medicare beneficiaries—and their access to insurance options.

Potential points of contention

  • Cost pass-through concerns: Whether insurers would absorb the fee or increase premiums for Medicare Advantage enrollees, potentially affecting seniors on fixed incomes
  • Market competition effects: Risk that fees could discourage insurers from offering plans in Connecticut, reducing consumer choice and competition
  • Federal regulatory conflict: Unclear interaction with federal Medicare regulations and whether states have clear authority to tax Medicare Advantage insurers specifically
  • Revenue predictability: Uncertainty about how much revenue the fee would actually generate and whether it justifies potential market disruption

Compiled from official sources — confirm details with the bill’s official record.

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