‘Play or pay’ health care tax stopped in Finance Committee

(April 13, 2006) In a very positive development for the state’s economy and business community, the “play or pay” health care tax proposal died in the legislature this week when the Finance Committee chose not to take action on the measure, SB-462.

CBIA appreciates the Finance Committee’s recognition of the highly negative effect the bill was having on Connecticut’s business community and prospects for job growth in the state.

The bill failed to address the true problem in the health care system — steadily rising costs. Employers and employees alike in Connecticut are struggling to afford health benefits and have suggested measures to help reduce costs.

While this year's version of the measure applied to retailers employing 5,000 or more employees, the bill’s proponents have made it clear they ultimately want the measure to apply to a much broader group of employers in Connecticut.

Knowing this, nearly 100 business groups stated their opposition to the measure, as did businesses from the manufacturing, retail and insurance sectors.

Employers in Connecticut are already national leaders in providing health benefits to their employees. In fact, offering good benefits is critical for businesses to stay competitive by attracting and keeping skilled workers.