Connecticut Governor Ponders Health Insurance Pool Expansion
A bill was recently approved in both the Connecticut state House of Representatives and Senate which would broadly expand the state’s health insurance pool. If Governor M. Jodi Rell signs the measure, would up the number of people covered in the pool to around 600,000 people.
With this expansion, argue the bill’s proponents, members will have more bargaining power with insurance companies and could drive down rates.
Under the measure, municipalities, non profit organizations, and small businesses with fewer than 50 employees could buy into the pool, reported the Hartford Courant.
“Finally passing the pooling bill shows that our lawmakers truly do care about the healthcare burden on Connecticut’s towns, school districts and small businesses,” said Michael O’Brien, the president of a Connecticut worker’s union.
But the bill is facing strong opposition from insurance companies, business associations, and Governor Rell’s administration.
One insurer estimated the expansion will cause rates to increase by 4 percent, and they would have to re-negotiate previously agreed upon rates for 2009 and 2010.
Governor Rell has indicated that she is considering using her veto power to strike down the bill.
“We believe the bill could damage competition in the current private market, put an unfunded burden upon the state, and prevent municipalities from having the flexibility to control their employees’ health costs,” said a spokesman for ConnectiCare, a state-based insurer.
