fact sheet

Governor Rowland’s Small Employer Health Insurance Subsidy Program:

Complicated and Premature

What is it?

Eligible low-income individuals and families (under $16,391 for individuals, $27,787 for a family of three) would get state subsidies to help pay the cost of health insurance from their employers. The costs of the program will be paid for by benefit cuts and copayments and premiums on other low-income HUSKY parents. Other states have not been successful with similar programs.

Will it work?

Maybe	Maybe Not

Could reduce the number of uninsured in CT	Could increase the number of uninsured in CT

All family members are in the same plan for up to 5000 families in new program	Separates parents from children’s plan for up to 20,000 current HUSKY families
Reduces the stigma of public coverage for participants	Could strengthen current HUSKY stigma
Leverages private employer dollars	Very complex, difficult to administer
	Unfair eligibility based on employer offer of benefits through a state-approved purchasing pool, e.g. CBIA
	Unfair- low-income HUSKY parents pay the costs of the program
	Other states have not been successful
	Offers less comprehensive benefit packages

What should we do?

Study the idea further. Move planning from the small workgroup to a public process emphasizing consumer input.

Tie HUSKY parents’ benefit cuts and costs to enrollment targets in new program so low-income parents don’t pay for a program that may not work.

Ensure a fair system	Provide consumer and employer supports/education
Evaluate the program, collect data	Protect consumer rights and privacy
Provide wrap around services not included in employer package	Minimize HUSKY stigma
Consider other options to help CT’s uninsured.