Government-run health care proposal dies in committee – but other costly measures still alive

(May 18, 2007) One proposal to move Connecticut toward a costly and unsustainable government-run health care system failed last week when the Finance Committee took no action on SB-1371, effectively killing the bill. However, the committee had previously approved another essentially similar bill (HB-7314) that is keeping the government-run health care movement alive this session.

And while the demise of SB-1371 is encouraging, other legislative health care battles remain. Along with HB-7314, legislative committees have also approved a pair of health insurance purchasing-pool bills (HB-7320 and HB-7396) that envision a government-run health care system that begins with forcing all of Connecticut’s cities and towns to participate in a state-run health care system.

This system could then easily become the infrastructure for a future, single-payer health care system that would have the state making all of the health care purchasing decisions for all Connecticut residents.

Health care pooling bills operate under the false assumption that the larger the purchasing pool, the lower the cost. If this were the case, however, companies with large numbers of employees would then have very low health care costs.

But because medical care simply is very expensive, this is not the case and both very large and very small companies are struggling to afford health insurance. Just creating large purchasing pools will do nothing to lower these costs.

Rather than imposing costly, inefficient and unsustainable government-run health care systems, lawmakers should strengthen the state’s current system of employer-based health insurance by adopting the recommendations advanced by the coalition of Connecticut’s businesses, hospitals and health insurers.

The core principles endorsed by this coalition are:
• The state must immediately increase reimbursements to health care providers under HUSKY and other state programs in order to help stabilize hospital finances, improve access by participants to physicians, and reduce cost shifting to employers

• The state should expand Medicaid and vigorously increase enrollment of children in HUSKY

• Our current employer-sponsored insurance system should be strengthened, not abandoned, through the creation of new refundable tax credits and/or premium subsidies to encourage small businesses to provide health insurance, and to support the costs to individuals of participating in employer-based plans or purchasing individual coverage

• The state should apply for the necessary waivers to permit HUSKY individuals to enroll into employer-based coverage using state and federal dollars

• The state, working with the private sector, should create a Commission on Healthy Lifestyles to promote healthy lifestyles and wellness programs

• The state, working with the private sector, should create the Connecticut Health Data and Technology Institute to (a) increase the transparency of comparative cost and quality information regarding health care, (b) develop evidence-based standards of care and practice guidelines, and (c) promote the deployment of advanced e-prescribing and electronic medical record technology by the state’s health care providers

• The funding for these initiatives can and should be found within existing state and federal resources
Health care reform measures that focus on these core principles will go a long way towards reducing health care costs, improving quality and increasing access to health insurance.

For more information, contact CBIA’s Eric George at 860-244-1921 or georgee@cbia.com.

CBIA Action Center

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