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SB 454

AN ACT REQUIRING HEALTH INSURERS TO ALLOW A COVERED PERSON TO TERMINATE COVERAGE AND PROCURE ALTERNATE HEALTH INSURANCE WITHOUT PENALTY WHEN SUCH COVERED PERSON'S HEALTH CARE PROVIDERS ARE DESIGNATED OUT-OF-NETWORK.

2025 Regular Session Introduced by Saud Anwar and 1 co-sponsor

Allows Connecticut residents to cancel health insurance without penalty when their doctors become out-of-network, enabling switches to alternate coverage during involuntary provider network changes.

REF. TO JOINT COMM. ON Insurance and Real Estate
#fines(penalties) #healthcareproviders #healthinsurance
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Bill Summary · SB 454

Legislative bill overview

SB 454 would require health insurers in Connecticut to allow policyholders to terminate their coverage without penalty and switch to alternative insurance if their primary healthcare providers become out-of-network. The bill addresses situations where enrollees lose access to established providers due to insurer network changes, not due to their own circumstances.

Why is this important

Unexpected provider network changes can disrupt continuity of care, particularly for patients with chronic conditions or ongoing treatments who rely on specific doctors. This bill seeks to protect consumers from being locked into plans that no longer serve their medical needs while maintaining established patient-provider relationships. It balances insurer flexibility with consumer protections during involuntary network disruptions.

Potential points of contention

  • Insurance industry concerns: Insurers may argue this creates adverse selection, allowing healthier patients with preferred providers to leave, which could increase premiums for remaining enrollees
  • Defining trigger events: Disagreement over what constitutes a meaningful provider loss (single doctor vs. multiple specialists) and how quickly changes must occur to trigger the right to terminate
  • Implementation costs: Administrative burden and potential rate impacts of processing mid-year terminations and transitions, which could be passed to consumers
  • Market stability: Questions about whether frequent policy switching undermines plan sustainability and whether alternative coverage is actually available to all affected individuals

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

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