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July 21, 2009

Connecticut Taxpayers Cannot Afford State Financed Universal Health Care
By Senator Rob Kane

The General Assembly’s override of Governor M. Jodi Rell’s well-thought out veto of the so-called SustiNet Plan bill brings Connecticut one step closer to a statewide universal health care system that taxpayers cannot afford and that may ultimately fail.

The need for health care reform is a pressing national issue. But implementing the pricey SustiNet Plan legislation in Connecticut is not the answer – especially now when the state is operating under executive order because the General Assembly has not yet passed a budget for the current fiscal year. As Governor Rell noted in her veto message, the state Office of Policy and Management has estimated that SustiNet has the potential to cost approximately $1 billion per year. Right now, the state is facing an $8.5 billion deficit over the next two years, the unemployment rate is eight percent, and tax revenues continue to decline.

This legislation, House Bill 6600 (Public Act 09-148), An Act Concerning The Establishment Of The SustiNet Plan, is among the 20 bills vetoed by Governor Rell this year. Of those, the General Assembly’s majority leadership attempted to lead an override of eight vetoes, and succeeded in securing an override of seven. I joined all my fellow Republican Senators in supporting Governor Rell’s attempt to protect Connecticut taxpayers from the consequences of implementing the SustiNet Plan legislation.

Specifically, the legislation calls for the creation of a board charged with making recommendations to the General Assembly by January 1, 2011 on the details and implementation of a self-insured health care delivery plan. Among other things, these recommendations must address the establishment of a public authority, or other entity, with the power to contract with insurers and health care providers and set reimbursement rates. Furthermore, the board will recommend provisions for phasing in the offering of the SustiNet Plan to state employees and retirees, HUSKY A and B beneficiaries, people without employer sponsored insurance, people with unaffordable employer sponsored insurance, small and large employers, and others.

I share Governor Rell’s concern that the board charged with making recommendations to the General Assembly is being told the approach to take to health care reform before there is an analysis of the full costs of implementing such a plan, along with an analysis of such a plan’s effectiveness in reducing the number of uninsured state residents.

Furthermore, considering that President Obama is pushing Congress to pass universal health care legislation and lower health care costs, it is premature for Connecticut to move forward on SustiNet. At this point, we simply do not know whether Connecticut’s SustiNet plan will complement whatever health care reform legislation is ultimately passed by Congress.

It is important for Connecticut families and for our economy to improve access to health care and to lower health care costs. Establishing a state sponsored universal health care plan without first knowing if it will work with yet-to-be-passed federal legislation; without first analyzing its effectiveness in reducing the number of unemployed state residents; and without having a much better idea of both its short and long-term costs to state taxpayers is a very bad idea.

Believe it or not, it could have been even worse. The General Assembly failed – by one vote – to override the Governor’s veto of companion legislation that, among other things, would have converted the state employee health care plan to a self-insured plan available to municipal government workers, non-profit employers and small employers. In her veto of House Bill 6582 (Public Act 09-147), An Act Establishing The Connecticut Health Care Partnership, Governor Rell noted that some of the people this bill is intended to help already have insurance, others will not be able to afford to participate, and implementing this legislation could jeopardize the favorable ratings and costs of the current state employee insurance plan.

As always, I welcome the opportunity to discuss this, and other issues, important to our state. I can be reached at my legislative office in Hartford at 1-800-842-1421, or via e-mail to Rob.Kane@cga.ct.gov.