More Healthcare Penalties Must Be Rejected

The legislature is considering a bill that penalizes employers if their employees or their dependents opt-in to the state’s subsidized HUSKY A or B health insurance program. 

HB 6614 not only penalizes employers and in turn could impact their employees, but will also frustrate the implementation of federal healthcare legislation (the Affordable Care Act). 

Impacts Hundreds of Employers in CT

The bill impacts more than 500 employers in this state—simply put that is a lot of jobs —from manufacturers to hospitals and restaurants as well as nonprofits. The measure also impacts both small and large employers alike as it reaches out and grabs franchisees, many of which are individually owned.

Penalizes Employers Who Provide Insurance

Making matters worse, the bill penalizes employers who provide insurance to their employees.

HB 6614 forces Connecticut employers to pay a fee to the state if an employee opts-in to HUSKY  but since HUSKY  is a subsidized program it is able to offer rich benefits at low or no cost. So this bill would penalize employers even though they cannot compete with the subsidized HUSKY healthcare program.

Hurts Federal Healthcare Legislation

With the full impact of federal healthcare legislation still unknown, HB 6614 further complicates the new federal requirements. The year of implementation, 2014, is only a few months away yet the legislature is considering even more requirements and penalties on employers causing further confusion.

Bottom Line

HB 6614 will impact hundreds of employers in Connecticut  with more healthcare penalties that consequently hurt employees and jobs.

This bill’s wide ranging and expensive impact will be felt in all corners of Connecticut’s economy.

With the implementation of federal healthcare legislation only months away this is not the time to add new requirements. HB 6614 is unaffordable for Connecticut.

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