Governor Rell to Insurance Industry: YOU WIN!

Date: 
June 13, 2008
Contact: 
Phil Sherwood
Telephone: 
(860) 796-2398

FOR IMMEDIATE RELEASE

Local property taxpayers and small business to see no savings

CT – Governor Rell Vetoed the state's most important health care reform bill this session, known as the Healthcare Partnership Bill. The bill, opposed primarily by the health insurance industry, would have increased competition in the marketplace by opening up the state employee health insurance pool to municipalities, non-profits and small businesses. Contrary to claims by Gov. Rell and the insurance industry lobbyists, this plan would have allowed cash-strapped cities and businesses to benefit from the savings derived from economies of scale and increased purchasing power.

"Experience shows that the larger the insurance pool, the more purchasing power there is. The larger pool is more efficient, saves money and improves quality," stated Deputy Director Phil Sherwood of the CT Citizen Action Group (CCAG).

"Governor Rell had a choice to stand with the big insurance companies or to stand with citizens and taxpayers who are struggling with skyrocketing health care costs. She chose to stand with the insurance industry," Sherwood said. Governor Rell and the insurance industry collectively asserted that this bill was risky despite the fact that 24 other states have opted towards similar concepts to save money.

Sherwood noted that towns have been leaning hard on local tax payers to deal with skyrocketing health care costs. "It boggles the mind that she would oppose a voluntary system designed to increase choice and give cities and towns more leverage in the marketplace." For municipalities, the bill would have saved tax dollars on expensive health plans and alleviated pressure to cut back on community services. Furthermore, because health care costs would be cheaper, small businesses and non-profits would have been able to retain and hire more employees; something sorely needed in the current economy.

"Gov. Rell has demonstrated that protecting insurance companies huge profits are more important than providing more affordable, quality health care and job growth"

Health care advocates such as CCAG have expressed outrage over the arguments that the insurance industry and Gov. Rell have floated, against common understanding, that creating more choice in the marketplace will increase health costs, Sherwood said. "Settling for the status quo and siding with insurance companies that are profiting from our broken system is what wastes money."

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