Legislation approved by the Connecticut Legislature on Tuesday, May 6, would
open up the health insurance program covering state employees to Connecticut
municipalities, nonprofit organizations and employers in the state with fewer
than 50 employees.
The theory behind the legislation—which the Senate approved on a 22-12,
largely party-line vote—is that by joining the state program, cities, nonprofit
groups and small employers would become part of a much bigger purchasing entity
and pay lower rates than they would buying coverage on their own.
Earlier, state officials had said expanding the program could increase costs
for the state because insurers writing coverage could seek to raise rates to
reflect an expansion.
“These additional costs to the state are not budgeted anywhere, and
additional resources would have to be budgeted if the bill passes,” state Budget
Director Robert Genuario wrote in a letter to lawmakers before the House
approved the measure last month on a 102-43 vote.
Connecticut Gov. M. Jodi Rell, a Republican, hasn’t said whether she will
sign the measure.
Filed by Jerry Geisel of Business Insurance, a sister publication of
Workforce Management. To comment, e-mail editors@workforce.com.
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