Connecticut will use state or federal dollars to reimburse high premiums to health insurers under a series of proposals announced Thursday by Senate Republicans aimed at lowering premiums. We ask you to waive your right to adopt an insurance program.
At an early-morning press conference in the atrium of the legislative building, Republican Senate Majority Leader Kevin Kelly said the state and federal governments could reduce health insurance premiums by up to 30% through reinsurance programs that cover the most costly claims. You said you could save %. He said it could save $7,000 a year for his average family of four.
“Imagine what you can do to a family that is going bankrupt. It’s real money — real money that can be saved,” Kelly said. “This is a proposal that not only provides real money, but also keeps well-paying insurance jobs here in the insurance capital of the world.”
A Republican from Stratford and a former influential member of the Congressional Insurance Committee, Kelly has been pushing for reinsurance exemptions for the past few years. The reinsurance program was temporarily included in the Affordable Care Act, but the initiative expired in 2017.
Since then, more than a dozen states have received exemptions from the federal government, tallied tax credits that residents would have received as subsidies for plans purchased on health exchanges, and used the funds to pay high claims to insurance companies. used for This program reduces risk for insurers. By lowering the cost of providing insurance, proponents hope insurance companies will lower premiums.
State reinsurance programs typically rely on state funds to offset costs. On Thursday, Republican lawmakers said their plan would draw on funds from the state’s current budget surplus.
“This is a product used by a lot of the insurance industry and we need to be able to use some of the surplus funds and federal funds to dilute insurance costs that are passed on to consumers,” said Sen. Tony. MP said. Fan, said R-Fairfield.
The concept failed to gain momentum here in Connecticut. A bill authorizing a reinsurance program passed the House in 2019, but expired on the Senate calendar. Governor Ned Lamont has expressed support for the idea in 2021, but he has not pursued a policy and the state legislature has not introduced legislation.
On Thursday, Hampden Democratic Senator Jorge Cabrera, who co-chairs the congressional insurance committee, said there were serious questions about the program and savings identified by Republicans.
“I’m open to talking about it, but at this point, I don’t think we’re going to save as much money as we think we do,” Cabrera said. He said he supports efforts to
Senator Matt Lesser, a Middletown Democratic Rep. who previously chaired the Health Committee, said residents participating in subsidized plans available on Connecticut’s health exchange board, Access Health CT To make an impact, lawmakers said they repeatedly scrutinized and rejected reinsurance proposals.
“We’re actually raising costs for consumers by reducing federal subsidies for plans sold through Access Health,” said Lesser.
Republicans said they hoped their ideas would find bipartisan support. purchase pool surveys to expand state benchmarking programs beyond hospital costs to also include data on drug costs.
