The governor’s midterm budget adjustments include a new tax on self-insured employers and health insurance carriers to fund a new state healthcare initiative.

While CBIA supports a value-based approach to healthcare delivery, the fee is a problem because healthcare costs continue to rise and are a major concern to Connecticut’s employers. 

Self-insured employers are already facing additional fees under federal healthcare legislation and the new state fees would add to that burden.

The initiative--the State Innovation Model (SIM)--on a basic level is looking to change the healthcare payment model from fee-for-service (paying for each doctor visit) to patient-centered care (a more holistic model). 

CBIA supports a value-based approach to healthcare delivery, but since the program is designed to benefit all Connecticut consumers, it’s unclear why only a specific sector of the state’s healthcare market would be footing the bill. In addition, the state is already seeking federal funding for the program.

Employers are concerned about the slippery-slope created by this type of assessment to fund the program. Taking into account not only the high cost of healthcare but recent additional fees under federal healthcare legislation, Connecticut’s employers should not be saddled with even higher costs.

For more information, contact CBIA’s Jennifer Herz at 860.244.1921 | jennifer.herz@cbia.com | @CBIAjherz