A recent study from KNG Health Care Consulting finds that creating a new government-controlled health insurance system, known as the state government option, in Connecticut 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. We can’t afford this new government-controlled health insurance system.

THESE ARE THE FACTS

• Existing state revenue from premium taxes and health insurance assessments could fall significantly under current rates—between $71 million and $122 million by 2023—requiring the state to increase taxes and assessment on health insurers or through additional taxes on businesses and individuals.

• Premiums could increase for workers and their families, including for those whose employers do not take up the public option.

• The number of uninsured individuals under the public option could increase, depending on the rate of “take up” among employers. In four out of the six scenarios modeled by KNG, the increase in the number of uninsured ranges from nine thousand to 29 thousand.

• The higher the take up of the public option, the smaller the effect on the uninsured. In the two scenarios where firm take up is 75 percent, the number of uninsured could fall by only one percent.

• The Connecticut Partnership Plan 2.0 is already underfunded. If Partnership Plan 3.0 is also underfunded, the state would likely need to raise premiums or use other tax revenue and/or cut provider reimbursement rates to ensure the plan is financially secure. The study estimates that provider reimbursement rates would likely have to be cut by 15 percent. This could negatively impact Connecticut residents’ access to the quality care they need.

• If the state did not reduce provider reimbursement rates, it would likely have to collect between $816 million and $1.152 billion to replace lost tax revenue and secure financial footing.

THE BOTTOM LINE

Connecticut families need a strong, accessible, and affordable health care system and we can’t afford the consequences of the state government option. Let’s protect our existing coverage by building on what’s already working for Connecticut patients, not start over with a new government insurance system.