March 23, 2011
HEALTHCARE PARTNERSHIP IS A SOLUTION
Commentary By Susan Johnson, The Chronicle
Every month, hardworking people all over Connecticut lose their health insurance coverage when they lose their jobs, when their employers stop offering it, or when they can no longer afford to pay for it.
Towns have to choose between cutting programs or maintaining health benefits for their employees. Folks end up declaring bankruptcy because they are uninsured and cannot pay for medical procedures. Small businesses either have to eliminate health insurance coverage or hire fewer people because of the high premiums.
Recently, Ron Robillard wrote in the Chronicle about his costly health insurance policy that forces him to pay for the first $4,000 in medical expenses before his prescription coverage begins to pay his medical costs. Even after spending $4,000, he still pays hundreds of dollars to fill individual prescriptions.
Robillard challenged anyone covered by the state health insurance plan to share the pain of his costly health insurance with him. I have been an advocate of health care affordability since President Clinton was first elected in 1992.
Our country's battle to make health insurance affordable to all has been a century long battle and we are on the verge of reversing the trend of higher insurance rates and higher medical costs.
One solution to Robillard's problem is the Connecticut Healthcare Partnership bill, which is a plan to allow small businesses, municipal employees and non-profits to purchase health insurance through the state employee plan The Healthcare Partnership is a way to provide quality health insurance to more people, while saving money for small businesses and taxpayers.
The Healthcare Partnership is bulk purchasing for health care. The sheer size of the large pool drives down administrative costs and squeezes out waste.
Under new federal rules, insurance companies are required to spend 80 cents of every premium dollar on health care—not administration or profit. The state employee plan is much leaner—96 cents of every dollar go to health care.
The plan could be even more efficient. Imagine the negotiating power we would create if we added 100,000 municipal workers and small business employees to the pool. It's the same reason many of us shop at warehouse stores like Costco or Sam's Club—a larger group of customers means lower costs.
I have talked to many small business owners who do not even have health insurance for themselves or their families. They are one major medical issue away from bankruptcy and losing their businesses.
Several small business owners have told me how stunned they were when they joined a business organization believing that it would solve their health insurance problem, only to discover the business organization's insurance plan is unaffordable or provides inadequate coverage.
The Healthcare Partnership would also allow employers to offer more options to their employees. If employers are able to offer health insurance, they usually offer one or maybe two health insurance plans to employees.
Joining the state plan means they could offer the same choice of plans that the state offers its employees.
When people are uninsured or under-insured, we all pay for their medical costs, whether in the emergency room or on our growing Medicaid or Husky rolls.
Many small businesses want to do their part but in this insurance market, their options are limited.
The Connecticut Healthcare Partnership bill was passed by our state legislature two years ago, but was unfortunately vetoed by Gov. M. Jodi Rell.
I am confident with a new governor we will make the Connecticut Healthcare Partnership a reality this year giving Ron Robillard and hundreds of thousands of other Connecticut residents an affordable insurance option.