News on the New Proposed Healthcare Tax/Assessment in Connecticut (SB21)

Article is from theCT mirror | April 29, 2014 | by: Arielle Levin Becker

Business groups question Malloy health reform funding plan

Gov. Dannel P. Malloy’s proposal to hire nine workers to help develop a state-level health reform initiative isn’t, in itself, especially controversial.

But the way the governor wants to pay for it — by imposing a new fee on health insurance policies — has drawn opposition from business groups. One has warned that the state could face a lawsuit if the measure passes.

At issue is how the state would come up with $3.2 million for expenses and new staff to work on a project, known as the state innovation model, or SIM. The project is aimed at improving the quality of health care by changing the way private insurers and public programs like Medicaid pay for it, creating a system that rewards keeping patients healthy rather than doing more tests or procedures.

Instead of using state tax dollars to fund the project’s development, Malloy proposed raising the money by charging a fee to health insurance companies and health plans, based on membership.

Click to Read Entire Article on ctmirror.org

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