Hartford Business Journal

8 Hartford Business Journal • August 19, 2019 • www.HartfordBusiness.com FOCUS: Health Care By Matt Pilon mpilon@hartfordbusiness.com H ealth insurance policies with increasingly high deductibles have become the norm in Connecticut, and now, a top Democratic state lawmaker and his allies are taking aim at restricting or potentially even eliminating them. State Sen. Martin Looney, long an agitator of the state's powerful health insurance lobby, filed or co-sponsored several bills this year that aimed to crack down on high-deductible health plans, including one that would have outright banned the policies. The ban bill never made it to a pub- lic hearing, let alone any kind of vote, but that may change next year. A task force created by lawmakers late in the recent legislative session is preparing to study the financial ramifications of high-deductible health plans on consumers, and ways to ensure access to affordable health care. Any move to restrict or eliminate high-deductible plans in the state would face major opposition, as it could upend employer-sponsored health insurance that now covers a majority of Connecticut's private-sector workforce. Employers have been increasingly drawn to high-deductible plans be- cause they help reduce health insur- ance premiums, but they also typically require consumers to pay more out of pocket for their care when they need it. Members of the new task force are being appointed by legislative lead- ers and Gov. Ned Lamont. It's still early, but some ideas Looney and fellow reformers may pursue include pro-rating deduct- ibles for consumers who join a plan mid-year; capping deductibles below current federal minimums; fiddling with coverage requirements; or even restricting lower-income residents from accessing the plans. Some of those changes, however, could lead to higher premiums for employers and workers, according to insurers and the Connecticut Business & Industry Association. Another major complicating factor is that certain changes might imperil the tax-advantaged status of health savings accounts regulated by the IRS, or more broadly run afoul of federal law. Ted Doolittle, the state's Healthcare Advocate who sits on the 13-member task force, said high-deductible policies are best suited for upper-income households. While he favors reforms — such as closing a current loophole that can force some patients who switch jobs mid-year to pay a double deductible — and hopes to find a way to reduce the prevalence of high-deductible plans, he said he doesn't want to take the plans away from those who want or benefit from them. "It's a complex area we don't want to wade into without being sophisticated and exploring it correctly," Doolittle said. The task force, which must report its findings and recommendations to the legislature in early February, just in time for the start of the 2020 legis- lative session, is a chance to "mull this over a little bit outside the confines of a hurried legislative session," he said. Various task forces have come and gone in Connecticut, and they can sometimes be a way for legislators to punt on thorny or complex issues. But in an interview, Looney said he's not backing down from pursuing reforms. "It seems to be becoming more and more of a problem for people who find themselves in a position where their policies become unaffordable," the 26- year Senate veteran from New Haven said. "The task force will give us solid information to come back with next year to help with other legislation." While no significant high-deductible plan legislation became law this year, Looney said there are signs of bipar- tisan support, as evidenced by the Senate's near unanimous passage in late May of a patient protection bill, S.B. 42, which called for the task force, beefed up emergency room insurance coverage, and placed limits on out-of- pocket expenses insurers can charge. Out Of Pocket As high-deductible health plans grow in popularity, some state officials want to rein them in High-deductible health plans gain in popularity High-deductible health plans have become increasingly common among private-sector workers across the country. The chart below shows the percentage of private-sector workers with high-deductible plans. 2013 2014 2015 2016 2017 2018 CT 40.4% 43.7% 50.5% 59.3% 54.2% 55.3% U.S. 30.3% 35.2% 39.4% 42.6% 48.7% 49.1% Source: SHADAC/U. of Minnesota analysis of federal data Ted Doolittle, Healthcare Advocate, Connecticut Democrat and Senate Pro Tem Martin Looney is among those pushing for state-level reforms to high-deductible health plans. PHOTO | CONTRIBUTED

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