For Immediate Release
June 13, 2008

 

 

BUSINESS COMMUNITY PRAISES GOVERNOR'S VETO OF THE
STATE EMPLOYEE HEALTH CARE PURCHASING PLAN
Bill would have been costly for Connecticut taxpayers

 

The Connecticut Business & Industry Association (CBIA) applauds Governor Rell for vetoing the proposal to expand the state employee health care purchasing plan.  The bill would have opened the state employee health plan to municipalities and small businesses in a way that would not save them money, and would have been costly for Connecticut taxpayers.

"Gov. Rell took a careful look at the proposal, weighed the illusory savings against the economic realities of the bill, and wisely vetoed the measure,” said John R. Rathgeber, CBIA president and CEO.  “She recognized that this plan would not save small business owners and municipalities money and could potentially cost taxpayers millions of dollars.”

All three of the state's participating insurance carriers said if the bill went forward as envisioned by its proponents, they would have to rebid their rates -- jeopardizing the $54 million in state budget savings. Other problems with the bill included the inherently high cost of state employee benefits; the absence of consumer safeguards; the potential for rate increases within a three-year mandatory commitment period, and its true intent of merely paving the way for a taxpayer-funded, state-run health care system.

"The legislation doesn't improve quality, reduce costs or expand access to health insurance,” Rathgeber said. “It would be great if everyone could have the rich benefit package that state employees enjoy, but the cost is prohibitive. Those without insurance will not elect this expensive option if they are not signing up for the more affordable plans already available in the marketplace.”

Supporters of the proposal are gearing up for a reprise in the 2009 session.

"It would be judicious for legislators to build on the strengths of our current employer-sponsored health care system and focus on reducing the cost drivers in order to make health care more affordable and accessible to Connecticut residents,” said Rathgeber.

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CBIA is the state's largest business organization, with 10,000 members.

 

For more information contact Nancy Andrews, CBIA media relations manager, at 860-244-1957 or andrewsn@cbia.com.

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