Supporters of the Sustinet health care reform proposal plan to rally at the state Capitol in Hartford Wednesday but it appears they won’t have much to cheer.
Gov. Dannel P. Malloy says lawmakers have agreed on a deal that would open up the state employees and retiree’s health plan to municipalities, but that is as far as he is willing to go this year.
That means Sustinet supporters who have been pushing for a public option likely won’t get their way in 2011. And the state health plan won’t be opened up to small businesses either.
The agreement between the Malloy Administration and Democratic lawmakers would also establish a Sustinet “advisory” board. The board’s members would provide input on the implementation of federal health reform in Connecticut.
Malloy, who has voiced concerns over the cost of Sustinet, said at a Monday press conference the compromise was struck based on the fact that the state has scarce resources available right now. Connecticut is grappling with a $3.2 billion deficit.
Malloy, however, did not rule out opening up the state employee health plan to nonprofits or other groups in the future.
Sustinet is Connecticut’s sweeping health care reform proposal that originally included establishing a self-insured public insurance option choice for municipalities that would gradually be expanded to private employers, small businesses, nonprofits and households.
The plan also called for payment reforms including implementing the medical home model concept and linking provider payments to performance; expanding the state’s Medicaid program; and investments in electronic health records.
Democratic lawmakers, along with the Universal Health Care Foundation, at least one small business group, and others, have been pushing for the adoption of the proposal.
But Republicans and the Connecticut Business & Industry Association oppose the measure over concern about its costs.
Advocates say it could potentially save the state $226 million to $277 million a year.
But an independent estimate by the state’s Office of Fiscal Analysis said the measure could cost the state hundreds of millions of dollars a year.
The biggest cost driver identified by OFA is the creation of a “basic” health plan for low-income adults, which would run an annual tab up to $478.6 million a year. That basic health plan would also provide insurance coverage to about 100,000 people.
The insurance industry has also put out a study that says Sustinet would cost more than it saves.
Juan A. Figueroa, president of Universal Health Care Foundation of Connecticut, said the agreement by lawmakers wasn’t a total loss for Sustinet supporters.
