Hartford Business Journal

31 HARTFORDBUSINESS.COM | JANUARY 31 2022 Opinion & Commentary EDITOR'S TAKE State-backed public option won't be the antidote to rising healthcare costs W ill state lawmakers rekindle efforts this legislative session to propose a public health insurance option in Connecticut? It's not clear yet, but health insurers are already trying to get in front of the issue. They helped fund a new study by KNG Health Care Consulting, a health economics and policy consulting group, that concluded a proposal to expand access to a state-administered insurance plan to small businesses, nonprofits and multiemployer groups — introduced to the legislature last year as Senate Bill 842 — would likely force the state to raise taxes on health insurers and residents, increase premiums and possibly increase the number of uninsured people. The report — supported by Connecticut's Health Care Future, a project of the Partnership for America's Health Care Future, which represents hospitals, health insurers and other private-sector interests — said state revenue from premium taxes and health insurance assessments could fall significantly, by up to $122 million by 2023, if a public health insurance plan was adopted. Regardless of the report's findings, state lawmakers should drop their focus on a public health insurance plan — which could create further budget instability — and take a more holistic view on how to rein in healthcare costs. Taxpayers, of course, would be the backstop if such a plan is launched and can't cover benefit costs. Connecticut may be enjoying a short- term surplus now, but it lacks longer- term budget stability. It doesn't need to heighten those risks. Questions have already been raised about the solvency of the state-run healthcare plan for municipal employees — known as the Partnership Plan — that public option proponents want to expand access to. And there isn't enough evidence that a public option can deliver on its promise of providing affordable, lower-cost coverage without major government subsidies. A few states in recent years — Washington, Colorado and Nevada — have adopted their own versions of public options. At the very least, Connecticut ought to wait and see how those programs unfold before moving in a similar direction. Of course, Connecticut also risks losing high- paying insurance jobs. Insurers, which have strong influence at the state Capitol, have lobbied strongly against public option legislation in the past, even making indirect threats to relocate jobs elsewhere. Beyond those concerns, the bigger issue is that a public option fails to meaningfully address the rising cost of care. Health insurers often take the brunt of political and media criticism when it comes to rising healthcare costs. But in reality, they can't fully control those costs. Healthcare providers — including hospitals, physician groups and others — are on the front lines administering care and drugs to patients, and the industry has seen serious consolidation over the past decade, which many economists agree has increased the cost of care. In Connecticut alone, there have been more than 15 hospital mergers since 2009, and that's not including dozens of smaller physician practice acquisitions, many of which evade state oversight. Connecticut policymakers have not given the impact of these deals a serious enough look. And I haven't touched on pharmaceutical drug prices and Americans' own health. We are an increasingly unhealthy nation that also wants the best care backed by the best drugs and medical technology. That's all costly. U.S. healthcare spending grew 9.7% in 2020, reaching $4.1 trillion, or $12,530 per person, according to the Centers for Medicare & Medicaid Services. Total healthcare spending accounts for 19.7% of the nation's Gross Domestic Product. The pandemic has underscored the critical need for an affordable and accessible healthcare system. Many would agree we don't have that. All parties to the system are to blame; they're also part of the solution. But a standalone state-run public option won't significantly move the needle, and it could bring more risks than rewards. This is a much more complicated issue that requires a holistic look at the true cost drivers in the system. Greg Bordonaro OTHER VOICES Pandemic recovery can mean business opportunities for women entrepreneurs By Milena Erwin A re we emerging from the pandemic at last, or are we just figuring out how to operate in a reality that's been redefined by COVID? Either way, we're living in a world that's gone through a transformation over the last couple of years — one that is poised for permanent change. Change can often mean opportunity, though. And the changes we've come through have made this a great time for women to consider going into business for themselves. Why is that? First, it's because all this upheaval has highlighted business needs, inefficiencies and gaps that small players can take advantage of. How much thought did you put into videoconferencing 18 months ago? Now it's essential for practically every single business. Online selling has also become a necessity in a way that no one could have imagined pre-pandemic. Changes like these have leveled the playing field, so small businesses that are able to operate online can go head-to-head with bigger companies. Lean, efficient and tech-savvy are now the name of the game. That means opportunity for entrepreneurs. Women entrepreneurs in particular are well-positioned for success. A recent study by MassChallenge and BCG Analysis found that women are, simply put, a great investment. According to their analysis, startups founded and co-founded by women were discovered to be significantly better financial investments in terms of how effectively they turned a dollar of investment into a dollar of revenue. For every dollar of funding, these startups generated 78 cents, while male-founded startups generated just 31 cents. Study after study finds that businesses founded by women are more successful, and investors are starting to take notice. Do you have a breakthrough idea? Now might be the perfect time to find financial backing. Other funding opportunities are now available, too. If you are a certified Women- Owned Small Business (WOSB) or Women Business Enterprise (WBE), you could be eligible for many different grants or low-interest loans. You also have the opportunity to bid on specific contracts with companies or government entities that are committed to spending a percentage of their contracting dollars with women-owned small businesses. There are many resources available to help women entrepreneurs learn more about programs like this. Both the Small Business Administration and U.S. Chamber of Commerce have detailed instructions available on their websites. If you need additional guidance, the Women's Business Center at the University of Hartford can help you with the certification process as well as with developing grant opportunities. Our services are free or low-cost, and you can meet with an advisor virtually. While it's true that the top business categories for women business owners (retail, health and beauty, business services, and food and restaurant) took a major hit during the pandemic, these sectors are poised for recovery as the pandemic ends. If your goal is to start a business in one of these industries, there might be no better time than right now. Potential for fast growth is strong. Women own more than 11.6 million companies (39% of privately-held firms) in the U.S., according to the National Association of Women Business Owners, and that number continues to rise. Women are being recognized for their ability to solve problems, promote cooperation and communicate effectively — all characteristics of great business leaders. And with the renewed focus on the value of work-life balance, women bring a mindset to business ownership that resonates with both customers and potential employees. For women, post-pandemic recovery could represent the best time in decades to start new businesses. Is 2022 the year that you make the leap? Consider your options and make sure you take advantage of all the resources that are available. This could be the perfect time to make your dream a reality. Milena Erwin is the program manager of the Women's Business Center at the University of Hartford and an adjunct professor of entrepreneurship at the Barney School of Business. Milena Erwin

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