Hartford Business Journal

26 HARTFORDBUSINESS.COM | FEBRUARY 23, 2026 Opinion & Commentary E D I TO R'S TA K E Lamont's 'Connecticut Option' needs clarity on structure, risk five years ago the state approved a $40 million taxpayer-funded bailout to keep it solvent. While the rhetoric may be sharp, the fiscal reality is relevant. When a state-sponsored plan runs deficits, those costs do not disappear — they ultimately fall to taxpayers or the broader state budget. Any proposal that expands the state's role in designing benefits, influencing reimbursement or backing insurance risk will inevitably be judged against that record. At the same time, the status quo is hardly sustainable. Connecticut's fully insured small-group health insurance market has been rapidly eroding. Since 2022, Aetna, ConnectiCare, Harvard Pilgrim HealthCare and the Cigna-Oscar partnership have exited Connecticut's fully insured small-group market. Only two carriers remain, leaving employers with limited choice and consistent double-digit annual rate increases that insurers attribute to rising medical costs, pharmaceutical spending and state coverage mandates. That shrinking marketplace is why business groups are urging lawmakers to consider association health plans — which allow small employers to band together to purchase coverage as a larger group — as a way to increase purchasing leverage and flexibility. Lawmakers should finally approve that legislation. Meantime, any debate about the future of affordable health care in Connecticut will unfold amid intense lobbying pressure. Four of the state's five largest lobbying spenders represent hospitals, insurers or related health care interests, which together have spent more than $5 million during the current reporting period, according to data from the Connecticut Office of State Ethics. Given the recent history of contract disputes between insurers and hospital systems over reimbursement rates — clashes that have led to network disrup- tions and public standoffs — it's difficult to imagine that a state-designed plan influencing provider payment method- ologies would move forward without significant resistance. Lamont is right to focus on afford- ability as health care costs continue to climb and strain Connecticut families and employers. But in a state where health insurance is both a dominant industry and a delicate ecosystem, structure matters. Any version of the Connecticut Option that shifts significant financial risk to the state could expose taxpayers — and the budget — to instability. The legislature should proceed with caution. G ov. Ned Lamont is promising a path toward universal, afford- able health care in Connecticut through a proposal he's calling the "Connecticut Option" — a state-de- signed health coverage framework aimed at lowering costs. The Democratic governor outlined the concept during his Feb. 4 State of the State address, saying the plan would encourage state employees, retirees and small businesses to seek care from hospitals that deliver the best value, noting that some providers charge far more than others for similar outcomes. But what remains unclear — and increasingly important — is what, exactly, the Connecticut Option would be. The short answer is we don't know. And based on public comments, inter- views and the pending legislation, the administration has yet to clearly define its structure. In his speech, Lamont seemed to use language that closely resembles past public option proposals — govern- ment-backed insurance plans designed to compete alongside private carriers — pledging coverage with no co-pays or deductibles and urging lawmakers to ignore lobbyists who might oppose the plan. Yet in more recent comments to the Hartford Business Journal, Lamont described a more limited structure. He said the Connecticut Option would keep private insurers responsible for underwriting risk, but offered few specifics about how the model would operate. He suggested it could build on cost-control efforts within the state employee health plan. At the same time, Lamont has proposed House Bill 5041, which does not establish a Connecticut Option but instead directs the Office of Policy and Management to study the feasibility of creating one and report back to lawmakers in 2027 and 2028. The bill defines the program as "a standardized health benefit plan designed by the state" and made available through private or commercial insurance carriers. The bill directs OPM to study core design elements, including provider reimbursement models, value-based contracting arrangements, premium and cost-sharing targets, and whether state-backed reinsurance or premium assistance mechanisms might be required to support the program. That framework leaves open signifi- cant policy questions. If the state designs the benefit structure and examines reimbursement models, how much influence would it ultimately exert over provider payment rates? Would private carriers simply administer the product, or bear full underwriting risk? And if projected savings fail to materialize, who absorbs the losses? Those questions carry weight because Connecticut has recent experience with a state-run health plan that struggled financially. According to a report released last month by Comptroller Sean Scanlon's office, the state-run Partnership Plan — which covers municipal and other non-state public-sector workers — paid nearly $23 million more in claims than it collected in member premiums in the most recent fiscal year. Republican lawmakers were quick to criticize the Partnership Plan's finan- cial performance, arguing it lacks key insurance protections and warning that it foreshadows broader government involvement in health care. They also pointed to its recent history, noting that Greg Bordonaro TOP 10 LOBBYING SPENDERS AT STATE CAPITOL GROUP 2025-26 SPENDING* CT Hospital Association $3.1M Partnership for America's Health Care Future Action $770,193 Eversource $720,981 Hartford HealthCare $647,097 CT Association of Health Plans $535,627 Connecticut Education Association $467,812 Connecticut Bankers Association $443,447 Action Now Initiative LLC $440,708 Insurance Assoc. of CT $434,876 CBIA $426,264 Total lobbying spending during 2025-26 reporting period $59.7M *The totals are for the 2025-26 spending period, which remains ongoing. Source: CT Office of State Ethics

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