Hartford Business Journal

4 Hartford Business Journal • May 27, 2019 • www.HartfordBusiness.com Week in Review Briefs Health insurers, biz lobby ramp up fight against public option Connecticut's health insurance industry is again touting its economic impact hoping it will get some policymakers to back off their support of a state-administered public health insurance option. An economic analysis released by the Connecticut Economic Resource Center Inc. (CERC) says the state's health insurance industry in 2018 generated an estimated economic impact of nearly $15.5 billion and supported more than 40,000 direct and indirect jobs. The Insurance Matters to Connecticut coalition, comprising the Connecticut Business & Industry Association (CBIA), several chambers of commerce and the Connecticut Association of Health Plans (CTAHP), which represents some of the state's largest insurers, said the report shows the vitality of the state's private health insurance industry and should steer people away from backing a government-run health insurance program that would reduce choice, raise costs and lead to job losses. Under one public-option proposal in the state legislature, billed as the "Connecticut Option," the state would create by 2021 a public health insurance plan for small businesses and nonprofits with 50 or fewer employees. Most Democrats, patient advocates and other proponents of the state-run healthcare option argue the program would create greater competition and push carriers to lower prices, giving small business owners an alternative to costly commercial plans. Study: CT's $15 min. hourly wage could cost 15K jobs A conservative research group says Connecticut's impending adoption of a $15 minimum hourly wage could cost the state more than 15,500 jobs. The state Senate recently granted final passage of raising the state's minimum wage from $10.10 to $15 by 2023. Gov. Ned Lamont, a Democrat, has pledged to sign the bill into law. Following the Senate's vote and amid attempts by Congressional Democrats to raise the federal minimum wage to $15 per hour, Washington, D.C.- based Employment Policies Institute (EPI) published a study that estimated Connecticut would be hit the hardest in New England by the wage uptick, costing the state approximately 15,531 jobs. Nationally, more than 2 million jobs could be lost if the Democratic-controlled Congress were to approve a $15 minimum wage, EPI estimates. EPI said it used Congressional budget office data for its analysis. Proponents of the Connecticut wage increase say the effort is long overdue. In Connecticut, the $15 minimum wage will benefit more than 330,000 workers currently earning the state's $10.10 minimum wage, according to the National Employment Law Project (NELP), a nonpartisan, nonprofit organization based in New York City. CI to invest $1M in Canadian startup Connecticut's venture capital arm said it will invest up to $1 million in a Canada- based biometric-products manufacturer, which was a 2018 VentureClash competition winner. The quasi-public Connecticut Innovations (CI) announced it has made an initial $665,000 investment in Invixium Access, of Toronto, Canada, which was named among six other winners in the third annual VentureClash competition in October. Invixium designs and builds biometric products that help with user authentication and other tasks. Biometrics is the technical term for body measurements and is used in computer science. CI said Invixium will use the capital for software and data analytics development, sales and marketing, and expansion into the U.S. market. TOP STORY Toll vote delayed as CBIA opposes highway user fee C onnecticut's largest business lobby, which was previously silent on the controversial tolls issue, announced it does not support tolling as a way to fund major infrastructure investments. The Connecticut Business & Industry Association (CBIA) ended months of speculation announcing it "cannot support highway tolls" as a revenue driver to pay for the state's lack of infrastructure investment in recent decades. CBIA's declaration came the same day Gov. Ned Lamont said a vote on highway tolls will likely have to wait for a special session later this year. "The state's chronic short- and long-term fiscal problems outweigh any of the other factors inhibiting economic and job growth in Connecticut," CBIA said in a statement. "At this time of fiscal instability due to high state spending and fixed costs, we cannot support highway tolls." The business lobby said there is "general agreement" among its 50-member board that user fees — which could include tolls — are a useful way to fund critical transportation projects. However, until state government exhibits a greater capacity for fiscal discipline, CBIA said "it is difficult to support adding additional cost burdens, like tolls, on individuals and businesses." "These chronic fiscal problems have created a challenging environment for economic growth that is the reality in Connecticut today," said CBIA, adding there is distrust that transportation funds will not be used for transportation projects, despite the state's recently approved "lockbox" fund. BY THE NUMBERS 15 The number of Fortune 500 compa- nies that are based in Connecticut, which is down from 17 last year. 2.9% The percentage decline in Greater Hartford home sales during the month of April, according to the Greater Hartford Association of Realtors. $8M The investment East Hartford's Goodwin College plans to make to build a 23,000-square-foot mixed-use building across the street from Pratt & Whitney's headquarters. $60M The amount state lawmakers may invest over the next two fiscal years in Hartford's XL Center. TOP 5 MOST READ On HartfordBusiness.com • 1. Study: CT's $15 min. hourly wage could cost 15K jobs • 2. UTC tops CT's list of Fortune 500 companies • 3. CBIA opposes tolls on CT highways • 4. Hartford attorney to takeover downtown synagogue • 5. CT manufacturers eye space opportunities STAY CONNECTED For breaking and daily Greater Hartford business news go to www.HartfordBusiness.com HBJ on Twitter: @HartfordBiz HBJ on Facebook: www.facebook.com/HartfordBiz HBJ on Linkedln: www.linkedin.com/company/ the-Hartford-Business-Journal Daily e-newsletters: HBJ Today, CT Morning Blend www.HartfordBusiness.com/ subscribe Weekly e-newsletters: CT Health Care Weekly www.HartfordBusiness.com/ subscribe Gov. Ned Lamont's tolls plan would charge drivers up to 4.4 cents per mile. PHOTO | HBJ FILE

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