Connecticut's Public Health Bill Stalls on Industry Concerns -- Update
May 29 2019 - 7:45PM
Dow Jones News
By Joseph De Avila
Legislation to create a public health-insurance option in
Connecticut is off the table after an outcry from private
insurers.
State Sen. Matt Lesser, a Democrat who led the proposal, said
other components of the health-care legislation might still move
forward this year, including seeking permission from the federal
government to buy prescription drugs from Canada and looking for
ways to contain costs in the state's health-care system.
Mr. Lesser said insurance carriers raised several complaints
about the portion of the bill that would have created a public
health-insurance option, and that Cigna Corp., based in Bloomfield,
Conn., was particularly unhappy with it.
"I heard sharply worded concerns" from Cigna, Mr. Lesser said.
He added, "We are taking a step back and evaluating where things
stand."
Mr. Lesser said many of the complaints from the insurance
industry revolved around displeasure with competing with the
government for customers.
The legislation would have allowed individuals and small
businesses to purchase health insurance through the state and aimed
to cut premium costs 20% by 2022, compared with the cost in 2020.
The Democratic leaders in the legislature along with Democratic
Gov. Ned Lamont all backed the proposal.
A spokesman for Cigna said the public-option legislation was
ill-conceived and wouldn't work.
"This is yet another option no one in Connecticut can afford,
and in fact threatens the long-term viability and vitality of the
state," the Cigna spokesman said.
The spokesman denied a report that Cigna threatened to move its
Bloomfield headquarters out of state if the legislation advanced.
An article in the Hartford Courant earlier on Wednesday quoted
Connecticut Comptroller Kevin Lembo, a Democrat, as saying the
company had threatened to move.
Mr. Lembo didn't respond to requests for comment.
Mr. Lamont said in a written statement that he remains committed
to signing legislation that would create a public option in
Connecticut.
But, he said he understands "that for legislation of this
magnitude to be successful, the proposal must leverage the best
thinking from all stakeholders, including the carriers." He added,
"Cigna is a vital piece of Connecticut's fabric, and I am committed
to working collaboratively and constructively with carriers,
stakeholders and advocates."
Mr. Lesser's proposal also called for re-establishing the
individual mandate -- a centerpiece of the Affordable Care Act that
required people to have health insurance or pay a penalty -- that
has since been eliminated at the federal level by Congress.
The Connecticut chapter of AARP also supported the bill.
The state of Washington approved similar legislation earlier
this month to become the first state to introduce a public option.
Other states considering a public option or a similar concept
include Nevada, Colorado, New Mexico and Illinois.
Write to Joseph De Avila at joseph.deavila@wsj.com
(END) Dow Jones Newswires
May 29, 2019 19:30 ET (23:30 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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