According to reports payer executives debated in a letter to Connecticut Gov. Ned Lamont, against a bill that would impose a $50 million tax on insurance companies, possibly driving businesses out of the state. The letter was signed by Anthem CEO Gail Boudreaux, Harvard Pilgrim Health Care, and Tufts Health Plan CEO Thomas Croswell, Cigna CEO David Cordani, UnitedHealth Group President, and COO Dirk McMahon, and CVS Health CEO Karen Lynch.
- A suggested $50 million annual tax to fund subsidies for an enlargement of state-run health insurance will only drive up health care costs for everyone else, according to businesses and Republicans who are resisting its incorporation in Democrats’ high-priority public option legislation.
- Insurance companies are opposed to the tax and say its return will mean expanded premiums for people on fully insured plans. “The pandemic has demonstrated that employees can work virtually, making it easier for companies where they are domiciled and grow,” the letter said. “It has never been more critical for the state to create a climate that retains and attracts businesses that will help stabilize the economy.”
- While opponents have said that the legislation will attend to higher taxes and an increase in cost for private purchasers of healthcare, supporters say it will render Connecticut residents and government officials with more opportunities to negotiate better insurance options.
- Gov. Ned Lamont scaled in, defending the tax as a way to help bring health insurance into reach for individuals with high-deductible plans. “And that’s going to allow a lot more people to be able to afford health insurance, not only be able to afford it but afford to use it and that’s what matters,” he told media.