Connecticut’s efforts to open the state employee health insurance plan to municipalities, nonprofits and small businesses is moving forward in the legislature.
The insurance and real estate committee has approved the measure by an 11-9 vote. The measure will now go to the labor and public employees committee for another airing.
For years, lawmakers led by Speaker of the House Christopher Donovan, D-Meriden, have pushed to allow some non-state employee groups including municipalities, nonprofits and small business to join the state’s health insurance pool, claiming it would drive down costs by increasing the state’s bargaining power and reducing administrative expenses.
But Republicans, led by former Gov. M. Jodi Rell have been cool to the idea. Rell vetoed a similar plan in years past, claiming that it lacked details on cost.
This time, however, Donovan is working with the advantage of a Democratic majority in the House and Senate as well as a Democratic governor.
Opponents, including the Connecticut Business & Industry Association, say it makes little sense to open up the expensive, benefit-rich pool at a time when lawmakers struggle with a projected $3.2 billion deficit.
Meanwhile, Sustinet, the state’s sweeping health care reform law that would create a public insurance option to compete with private insurers, is also moving forward in the legislature.
The public health committee approved the measure by a 16-10 vote Monday, and the bill will now go to the insurance and real estate committee.
