CTHCF: Government-Controlled Partnership Health Plan a Fiscal Titanic

Program Proposed as Model for Government Public Option Faces Deteriorating Financial Condition Even After Massive Bailout 

For Immediate Release

May 10, 2022

Contact: Brett Broesder

Phone: (203) 781-6764

Email: [email protected]

Hartford, Conn. – Connecticut’s Health Care Future issued a statement Tuesday on a recent report from Brown & Brown Insurance on the deteriorating fiscal health of the Connecticut Partnership Plan.

“Despite repeated bailouts from taxpayers, the Connecticut Partnership Plan continues to be a fiscal Titanic that demonstrates why government-controlled health programs are unaffordable and unstable. With a total loss ratio of 103.7 percent in 2021, this is the third year in the last four that the plan’s paid claims and fees have exceeded premiums collected. Consumers who rely on the Partnership Plan for their health coverage now face premium hikes as high as 15 percent, even after the program was injected with $40 million meant to combat the COVID-19 pandemic last year.”

“The Partnership Plan’s track record of insolvency showcases why policymakers must reject any future consideration of an expanded one-size-fits-all, government-controlled health insurance system that could lead to higher taxes, increased health care costs and reduced access to quality care. Private plans and existing public programs are already working together to expand access to quality, affordable health care. Connecticut policymakers and the private sector should work together to strengthen and improve the existing health care system.”

Key takeaways from the Brown & Brown report include:

  • The Connecticut Partnership Plan operated at a 103.7 percent loss ratio across 2021, with the ratio peaking at 126.7 percent in December.
  • A Comptroller’s report in March 2021 identified a $29 million shortfall as claims and fees paid far outpaced premiums collected.
  • State Comptroller Kevin Lembo transferred $39.9 million earmarked for emergency COVID relief to the Partnership Plan in December 2021 to combat the deficit and ensure premiums wouldn’t spike the following year.
  • An Office of Policy & Management (OPM) report noted that of the state’s budget sections to run a deficit, the largest was anticipated to be excessively burdened by deficits connected to health insurance.
  • Brown & Brown project the plan will need a 15 percent increase in premiums for 2022-2023 to cover the base costs of the plan, almost double the highest previous increase.

Learn more about the fiscal history of the Partnership Plan HERE.

Learn more about how a government public option could lead to negative consequences including higher taxes on Connecticut residents and businesses, higher premiums for workers and their families and reduced access to quality care in the state HERE.

Connecticut’s Health Care Future is a coalition of health insurers, hospitals and businesses who believe all Connecticut residents deserve access to affordable, high-quality health coverage and care. We’re committed to building on and improving what’s working where private coverage, Medicare and Medicaid work together to expand access to coverage and care. Learn more about Connecticut’s Health Care Future HERE.