Public CT Health Insurance Legislation Introduced

HARTFORD, CT — Democratic legislators unveiled two bills Thursday that could lead to a public health insurance option for both individuals and families.

A public health insurance option was initially proposed as part of the Affordable Care Act, but it was eliminated before the bill passed.

House Bill 7267 would open the state's Partnership 2.0 Plan to small businesses and non-profits. The state offers group insurance to non-state public employees. Enrollees would get benefits of the state employee health plan, which includes a Health Enhancement Program that eliminates deductibles for those who take part in preventative care services.

The state would administer different plans. Legislators pitched it as a good option for small businesses because the plan has a large and stable risk pool.

The small business/non-profit option would go into effect in 2020.

In 2021 an individual option would be established and be administered through one or more private insurers. Subsidies may also be available based on household income.

" Connecticut’s public option will be the most transformative change to healthcare in years,” said Sen. Matthew Lesser, Insurance and Real Estate Committee co-chair. “We are stepping up to give small businesses, nonprofits and individuals real choice, real competition and lower prices."

Senate President Martin Looney said a public option would be more efficient than the for-profit health insurance industry.

“Federally, Medicare spends a much lower percentage on administrative costs than the private insurers do," Looney said. "Creating a public option would allow our state to see whether the state government can provide better care at a lower cost."

State Comptroller Kevin Lembo said a public option would be good for young workers who are looking to become entrepreneurs, but take a job in order to get health benefits.

"This legislation would allow us to extend the successes of the state plan – high-quality health care coverage at the best price – to more Connecticut residents, beginning with small businesses and their employees," Lembo said.