Connecticut Governor Vetoes Health Care Bill That Would Have Expanded State Employee Health Insurance Plan

Main Category: Health Insurance / Medical Insurance
Also Included In: Public Health
Article Date: 18 Jun 2008 - 12:00 PDT

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Connecticut Gov. Jodi Rell (R) on Friday vetoed legislation that would have allowed municipalities and small businesses to join the state's health insurance plan, the Hartford Courant reports. The bill was supported by state employees' unions and Democrats and opposed by the Connecticut Business and Industry Association and state Republicans.

Rell said she vetoed the bill because the cost of expanding the pool remained undetermined. According to Rell, "No detailed, independent and comprehensive study of the potential benefits is currently available. Yet this is exactly the kind of information we really need before moving ahead with this concept." Rell said, "Any state law that impacts billions of dollars in costs and liabilities needs to be based on a firmer analytical and actuarial foundation." Connecticut spends $1 billion annually on health care for state employees and retirees. By 2020, costs to the state are projected to increase to more than $2.4 billion annually.

Presumptive House Speaker Christopher Donovan (D) said, "The information the governor used to research her decision is wrong," adding, "She was swayed by threats and numbers from the insurance companies and not the comprehensive analysis that we provided." Officials with Anthem Blue Cross Blue Shield, one of the largest insurers in the state, had said that if the bill became law, the company would be forced to increase its rates by 4% next year.

The state's Democratic leaders said they would work to pass the legislation next year, while Rell said she would work with Democrats to pass new legislation (Keating, Hartford Courant, 6/14).

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