With a little more than a week before the legislature adjourns, six health care and insurance companies are leaning on Gov. Ned Lamont to pull the plug on legislation proposing state-subsidized health care in Connecticut.
Insurers, businesses, health care providers and their advocates have before spoken out against the so-called Connecticut Option, which would establish a major state presence in the industry. Last week, representatives of Aetna, Anthem Inc., Cigna Corp., ConnectiCare, Harvard Pilgrim and United Healthcare sent Lamont a letter urging him to halt the legislation until more details — such as cost — are available.
“Bills of this magnitude, representing a fundamental and material change to insurance market operations and regulation, require careful and thoughtful consideration to avoid unintended consequences that could have a deleterious effect on job growth and economic development,” the executives wrote.
The executives said they appreciate Lamont’s efforts to improve the bill. But they asked the governor to “forestall further action until the goals and objectives can be better quantified and the proposal can be subjected to more rigorous review and analysis.”
The cost of the expansion of government-sponsored health insurance is not yet clear, but if fully implemented the price could be in the tens of millions of dollars or more annually.
Lamont said it’s a good bill that deserves support. The state will have two years to put in place the subsidized health care program if it is enacted before the legislative session ends June 5. “There will be plenty of insight going forward,” he told reporters following a ceremony where he signed legislation increasing the minimum wage.
“Look, I think we’ve put together a good Connecticut Option led by private insurers,” the governor said. “This is going to improve quality and lower rates for folks. It’s going to lower rates for small business. It’s really important. I’d like to see it get passed.”
Lamont and Democratic leaders of the General Assembly unveiled legislation Thursday proposing state-subsidized health insurance. It would offer coverage that meets or exceeds health plan offerings and “within available appropriations” provide state-financed subsidies for those who do not qualify for federal health care subsidies.
The legislation proposes to tax opioids, establish an individual mandate with a penalty for not participating, authorize the comptroller to establish rates for a new provider network to support a health care program and would impose surcharges on individual and group health insurance policies.
The letter, dated last Thursday and obtained Tuesday by The Courant, is signed by Mark Santos, president of Aetna’s New England market; Jill Hummel, president and general manager of Anthem; Wendy Sherry, Cigna market president for Connecticut; Eric Galvin, president of ConnectiCare; Jason Madrak, vice president of the Connecticutregional market of Harvard Pilgrim; and Elizabeth C. Winsor, chief executive officer of United Healthcare’s Northeast region.
Businesses, health insurers and others have cited a recent study by the Connecticut Economic Resource Center that health insurance plans employ more than 17,000 employees directly and support another 31,000 indirectly in Connecticut.
Rep. Sean Scanlon, House chairman of the legislature’s insurance and real estate committee, said he and others have been negotiating with health insurance executives, some of whom signed the letter, to get the terms of the legislation just right.
Talks continued into Memorial Day weekend. “I marched in two parades and was back on the phone,” he said.
“The conversations have been ongoing. They never stopped,” said Scanlon, D-Guilford. “I don’t know what the purpose of this letter is.”
House Speaker Joe Aresimowicz said the legislation is being heavily lobbied. Asked if it will come up for a vote before the legislature adjourns, he said, “We’ll know better tomorrow afternoon what the schedule looks like.”
The executives said they believe providing quality, affordable health care is a core value and critical to economic growth.
“Unfortunately, despite the best efforts of everyone involved, we cannot support the Connecticut Option legislation as currently drafted,” they said.
In a statement, Cigna Corp. said the “only option this proposal gives to the public” is to pay more and get less from the health care system. The proposal is “ill-conceived and simply will not work,” the Bloomfield insurer said.
“This is yet another option no one in Connecticut can afford and in fact threatens the long term viability and vitality of the state,” Cigna said.
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