Email Newsletters

Health Care Pool: Saving State Dollars

President Barack Obama has put health care reform at the top of the national agenda. Connecticut should, too.

In our current economic climate, an idea that merits strong consideration is the Connecticut Healthcare Partnership.

Passed by the Legislature last year but vetoed by the governor, the partnership can help save state dollars, provide relief to municipalities, small businesses and nonprofits, and expand access to high-quality, affordable health care.

There is considerable evidence that the proposed legislation would reduce the number of uninsured and reduce costs, including a preliminary analysis from the nonpartisan Office of Fiscal Analysis. When I traveled the state last year promoting this proposal, I was met with enthusiasm and support by municipal officials, union leaders, small business owners and nonprofit organizations. With the economic changes Connecticut has experienced in the past year, the need for this legislation has only grown.

ADVERTISEMENT

The partnership would open the state employee health plan to municipalities, nonprofits and small employers on a completely voluntary basis, streamlining our health care system and providing financial relief to these groups. They would be able to take advantage of the increased bargaining power and reduced administrative costs associated with the state plan, as well as the comprehensive benefits that state employees receive.

Recent proposals to create health care purchasing pools have generated significant attention. David Osborne, an expert in budgeting and improving government performance who consulted for Gov. Rell, argues that because governments are such large players in the health care marketplace, they can get better care at better prices by creating large, statewide health care purchasing pools and include both public and private employers.

The major change to the current proposal is that the state employee health plan will switch from fully insured to self-insured — resulting in immediate savings to the state. Most large employers self-insure because it costs less. A self-insured plan will allow the state to realize long-term savings by directly managing the medical claims and health service utilization.

 

ADVERTISEMENT

 

Rep. Christopher G. Donovan, D-Meriden, is House speaker.

Learn more about:
Close the CTA

December Flash Sale! Get 40% off new subscriptions from now until December 19th!