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June 2008 — Vol. 86, No. 5 
FROM THE PRESIDENT
State health plan no cure
for high costs
By John R. Rathgeber
CBIA President and CEO
CBIA recently came under public attack by proponents of a state-run health care system. They accused us of self-interest and “behind-the-scenes lobbying” for opposing a bill that opens the state’s very rich health benefit plan to small businesses and municipalities.
They are wrong on both counts and on the bill’s merits.
CBIA has publicly opposed that bill. Last year, Bill Curry and I debated this issue in an hour-long, live interview on WNPR. I expressed our opposition at editorial board meetings of state newspapers. We issued news releases, testified at public hearings and advertised on why this plan is a bad idea.
The bill has inherently high costs and illusory potential savings; no consumer safeguards; and the possibility of rate increases within a three-year, lock-in period. According to the governor’s budget office, the state’s insurance carriers have said that if the bill passed, they would have to reopen the contract and rerate the costs for health care coverage. This could significantly increase the state’s own health benefit costs, affecting the state budget.
One look at who supported the bill should have given legislators pause. They are not advocates for small business. They are the heads of the public-sector unions and others who want a state-run, single-payer health care system.
Our positions on health care and other issues are based on extensive input from our members — about 80% of which have fewer than 50 employees — and approved by our board of directors. Our positions have one main goal: creating a business climate that fosters economic growth, business investment and job creation.
The health care reforms we advocate would use the strengths of the employer-based system to reduce cost drivers, improve quality and give the uninsured access to health insurance. According to a Zogby International survey, nearly three-quarters of state residents agree that’s the way to go; they do not want a government-run health care system.
We will continue to work for a commonsense, quality health care system that is affordable for all and is in the best interests of everyone in Connecticut.
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