Connecticut's public option stymied by insurer opposition

Connecticut’s attempt to pass legislation authorizing a public health insurance option was stymied by fierce opposition from private insurers, who have a big presence in the state.

The Wall Street Journal reports that despite the efforts of State Sen. Matt Lesser, a Democrat who led the proposal, insurers objected so strongly to the public health insurance segment of the bill that that part of the legislation appears dead in the water—although Lesser said that other portions of the bill might pass. Those include a move to get permission from the federal government to buy prescription drugs from Canada and methods to control costs in the state’s health care system.

Related: Public options in health care making entrance via states

Among insurers, Cigna Corp., based in Bloomfield, Connecticut, in particular led objections to the public option, calling it ill-conceived and denying that it could work. That provision would have created an option to allow individuals and small businesses to purchase health insurance and cut premiums by an estimated 20 percent.

“I heard sharply worded concerns” from Cigna, Lesser told the WSJ, adding, “We are taking a step back and evaluating where things stand.” He also said that insurers were not happy at the prospect of competing with the state government for customers.

Democrats, including Governor Ned Lamont, supported the proposal, as did the Connecticut chapter of AARP. But not Cigna, whose spokesman said, “This is yet another option no one in Connecticut can afford, and in fact threatens the long-term viability and vitality of the state.”

The spokesman also denied a report that Cigna threatened to pick up its headquarters and go elsewhere if Connecticut was successful in moving the legislation forward, but earlier coverage from the Hartford Courant cited Connecticut Comptroller Kevin Lembo, a Democrat, as saying the company had threatened to move.

Lamont has said that he’s still committed to creating a public option in the state, but in a statement said “that for legislation of this magnitude to be successful, the proposal must leverage the best thinking from all stakeholders, including the carriers,” adding, “Cigna is a vital piece of Connecticut’s fabric, and I am committed to working collaboratively and constructively with carriers, stakeholders and advocates.”

One other provision of the legislation that remains live, however, is a reestablishment of the individual mandate, which requires people to purchase insurance or pay a financial penalty.

So far Washington is the only state to have successfully passed a public option, which it did earlier this month, although other states considering such a move include Nevada, Colorado, New Mexico and Illinois.

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