House Backs Universal Care

Hartford Courant - May 21, 2009

Measure Would Guarantee Medical Coverage To Any State Resident

HARTFORD - The state House of Representatives took a major step Wednesday night toward resolving an issue that has long defied a solution -- guaranteeing health care coverage to tens of thousands of Connecticut residents without health insurance.

After a debate that lasted 2½ hours, the House voted largely along party lines, 107-35, for a landmark bill aimed at achieving universal health care in Connecticut by creating a public insurance pool that anyone could join, regardless of their health history.

The pool, backed by a coalition of social activists, religious leaders and Democratic lawmakers, would be based on the existing pool for state employees, and is designed to compete with -- not replace -- private insurance plans.

It is still not clear when, or if, the so-called SustiNet plan could become law.

The state Senate still needs to act, and Republican Gov. M. Jodi Rell, who has been pushing her own Charter Oak health plan, could veto it. The costs are expected to be a major sticking point, especially with the state's projected budget deficit of $8.7 billion over the next two fiscal years.

The insurance industry has also pitched an alternate concept for expanding health coverage. That plan would also create an insurance pool for people who lack coverage, but instead of using a public pool, the plan would have insurers offer coverage for the people in the pool. ? Advocates for the universal plan stressed that Connecticut must be ready to act now that President Barack Obama has called for passage of a national health care plan.

"We've got a chance to make sure Connecticut is Obama-ready," said House Speaker Christopher Donovan, a longtime advocate for health care improvements. "The time for health care reform in this country, and in Connecticut, is long overdue. With reform now a national priority, we can position Connecticut for a leadership role in giving our families health care they deserve.''

In a separate measure, the House voted Wednesday night for a major "pooling'' bill that would allow cities and towns, along with small businesses and nonprofit agencies, to join the state's health insurance pool of 200,000 people.

After a seven-hour debate that lasted even longer than a recent clash over abolishing the death penalty, the House voted in favor of the pooling bill. Democrats were overwhelmingly in favor and House Republicans voted unanimously against. Wednesday was clearly health care day at the Capitol as two huge pieces of health legislation moved forward in debates that lasted from 12:30 p.m. until 10:30 p.m.

"Both of these plans reduce costs and increase choice," said Juan A. Figueroa, a former state legislator from Hartford who serves as president of Universal Health Care Foundation of Connecticut. "The partnership [pooling] bill has features that SustiNet can build on. The two bills fit hand in glove.''

The foundation has cultivated a wide base of support, including religious leaders, small business owners, and the Connecticut Medical Society. But the plan has drawn opposition from other groups, including representatives from business and the insurance industry.

Much of the universal plan might not take effect for years, which Rell's spokesman, Christopher Cooper, says is a problem. "It's bad public policy to tie the hands of a future legislature in that way,'' Cooper said.

The pooling bill that the House passed is designed to cut health costs through economies of scale, but opponents said the bill is deeply flawed because it would not help anyone who currently lacks health insurance.

Rell vetoed a similar pooling measure last year, and her budget director continued to express opposition Wednesday. But Donovan had pushed for the bill to come back again this year, and health care advocates praised the measure as a major step forward. Donovan has traveled around the state for the past two years, touting the idea to various audiences.

The pooling plan had virtually unanimous support among the House Democrats who backed Donovan, but it was harshly criticized for hours by the House Republicans.

"This is an historic occasion,'' said Rep. Steve Fontana, a North Haven Democrat who co-chairs the legislature's insurance committee. "The larger the pool you have ... you reduce the volatility and the risk associated with that pool. ... Pooling is a win, win, win.''

The Democrats rejected the notion by Republicans that the pooling concept is a risky idea that could lead to even higher costs as workers with bad claims histories join the pool.

"This is the time that Connecticut needs to act on the largest issue that faces the country. We cannot sit by,'' said House Majority Leader Denise Merrill, a Storrs Democrat. "I would argue this is a large step toward making progress'' to get health care costs under control. "We are taking some risk, but we are making an important advance.''

Currently, 24 other states allow their municipal employees to join the state employees' pool, including Massachusetts, New York and New Jersey. But Connecticut's bill would go further than many other states to also allow nonprofit agencies and small businesses with fewer than 50 employees.

The administrative costs per person would be decreased with a larger pool, Fontana said. Hypothetically, the 200,000 state employees, retirees and their families in the current plan could eventually become a pool of 300,000 people as others join. A small business with only 15 employees, for example, would currently pay a lower amount in the future if it was in a pool with 300,000 workers, lawmakers said. House Republican leader Larry Cafero of Norwalk criticized the proposal, but added that he understands the political reality that the bill would fly through the House of Representatives.

"I am not a moron. I understand this is the speaker's bill, and I can count,'' Cafero said of the Democratic advantage of 114-37 in the House. Cafero, though, said "the devil is in the details,'' saying that the bill does not solve the major problems with the state's health care system. A key component of the bill is that new members would be allowed to join the state's health pool, which has been described by some Republicans as the Cadillac of health deals.

"It is rather generous indeed,'' Cafero said, adding that Consumer Reports magazine says the health care plan for state employees is "one of the best in the nation.''

But Cafero complained that the pooling bill does nothing to help the 8 percent of Connecticut citizens who do not have health insurance. "This bill does not solve that problem,'' Cafero said. "If you don't have it now, you're not going to have it because of this.''

Hartford Courant - May 21, 2009