20 May 2009

Health Care Partnership Advances In House; Potential Savings To City Taxpayers

Legislation to allow cities and towns an option to join self-insured state health care plans overwhelmingly passed the state House of Representatives Wednesday night.

The Health Care Partnership Act – pushed by House Speaker Chris Donovan (D-Meriden) and New Britain lawmakers – “allows municipalities, certain municipal service contractors, nonprofit organizations, and small businesses to join the state employee health insurance plan for their employees and retirees.”

According to proponents, enactment of the legislation could reduce the city of New Britain’s health insurance costs by an estimated $900,000 per year. In effect in 20 other states, the health insurance polling concept has curbed and reduced rising health insurance premiums for local governments.

State Rep. John Geragosian (D-25), the House Appropriations chair, has pointed to the Partnership plan as a way to reduce one of the fastest rising costs for city government.

State Rep. Tim O'Brien (D-24) agrees: "This is important legislation because it would help keep property taxes down and extend quality affordable health care coverage for small businesses." Added O'Brien: "New Britain property taxpayers need the nearly $900,000 in savings this legislation is estimated to provide by lowering how much the city would have to pay for health insurance. And as I go door to door talking to the people I represent, many people who own or work for small businesses and non-profit organizations tell me how interested they are about the possibility of being able to get the quality state health plan at low premium prices from the state's bulk purchasing power."

Mayor Timothy Stewart (R-New Britain) has been critical of the legislation, arguing that it interferes with local collective bargaining agreements. Municipal union leaders, however, are strongly backing the partnership act that exists in Massachusetts and other states. Under the plan, benefits would likely increase for employees at a reduced cost to local taxpayers. Under the 2009 legislation adopted by the House, the partnership would extend eligibility to nonprofit organizations and small businesses.

Similar legislation, which faces opposition from insurance lobbyists and the Connecticut Business and Industry Association (an organization that sells insurance to small businesses) was adopted by the House and state Senate last year but Governor Rell successfully vetoed the plan. Enactment may depend on the state Senate approving the measure with a veto-proof majority.

Reminder: Town Committee Meets Thursday, May 21

The Democratic Town Committee will holds its May meeting on Thursday, May 21, at 7:30 p.m. at New Britain City Hall, Room 504. A discussion on current developments on municipal and state budgets will be part of the agenda. The Committee will receive an update on endorsements for municipal offices. The DTC will endorse municipal candidates in July. The public is invited to attend. For information on the municipal candidate endorsement process please visit www.newbritaindemocrat.net