Hartford Business Journal

6 Hartford Business Journal • May 15, 2017 www.HartfordBusiness.com TOP STORY Most CT insurers propose double-digit rate hikes With health insurance costs more of an unknown nationally, Connecticut is about to grapple with double-digit rate increase requests from insurers that go as high as 33.8 percent. The higher rates are being driven by more people using healthcare ser- vices, higher healthcare and prescription drug costs and overall uncertainty in the healthcare market, officials said. The Connecticut Insurance Department has set a June 14 hearing date and released 14 initial proposed insurance rate hikes for 2018 in both the individual and small group health insurance markets. The proposed average individual rate request increases range from 15.2 per- cent to 33.8 percent. The average small group increase rate requests range from 3.6 percent to 31.6 percent, Insurance Commissioner Katharine L. Wade said. The proposed rate increases cover plans sold on and off Connecticut's health insurance exchange, Access Health CT, ConnectiCare Benefits Inc., Harvard Pilgrim Health Care of Connecticut, Anthem, Oxford and UnitedHealth- care all submitted rate requests. UnitedHealthcare, whose plan covers 433 people and their dependents, proposed the lowest increase of 3.6 percent. ConnectiCare, whose four plans combined cover more than 85,600 people in both individual and small group policies, proposed a range of increases from 8.8 percent to 26.3 per- cent. All other insurers pitched increases of 10 percent or higher. "In the 2018 rates we are seeing claims experience that reflects in- creased medical and prescription drug costs along with higher utilization as well as uncertainty in the marketplace," said Wade. Hearings for each rate request will be formally announced in advance of the public hearing in June. GOVERNMENT & POLITICS On Realtors' dime, Geno tries coaching at the Capitol Geno Auriemma stood last week on a Bushnell Park bandstand, down the hill from the state capitol, to give a motivational speech commissioned by the Con- necticut Realtors. It was unclear if his target audience was the 2,000 Realtors seated before him or the two dozen legislators on stage behind him. He made a pitch for Connecticut to think big and long term as it struggles with its chronic budget woes, offering snark and sympathy toward legislators, and dropping asides about his heralded women's basketball team playing on campus in a leaky Gampel Pavilion and in Hartford at an XL Center that he called the worst venue in major collegiate sports. "This is a little bit different for me," said Auriemma, whose speaking fees can run $30,000 and up, according to one booking agency. "It's kind of out of my comfort zone. It's not what I do. The last time I talked to a Realtor, it cost me a lot of money." It was a little bit different for Connecticut Realtors, too. The trade associa- tion of 16,500 members, whose political action committee has $257,472 in the bank, is trying to flex its muscles at the Capitol, making a general demand for pro-growth policies in a year of fiscal crisis and unsettled politics. – Mark Pazniokas | CT Mirror Tesla direct car sales bill moves forward The state legislative finance committee passed a controversial bill last week that would allow Tesla to sell its luxury electric cars directly to consumers. House Bill 7097 was approved 25 to 20 in the Finance, Revenue and Bonding Committee. The proposal has stirred opposition from the Connecticut Automotive Retail- ers Association, which argues all new cars, including Tesla's, should be sold through dealerships owned by outside franchisees, as required by state law. With the legislation moving forward, a Tesla spokesman said the company hopes the bill is passed and signed into law "so we can build stores, service centers and charging locations that will improve the state's infrastructure and create jobs." The state Department of Motor Vehicles recently said Tesla has been operat- ing a Greenwich showroom like a new car dealership without the proper state license, according to published reports. DMV has asked Tesla to put its business functions there on hold, pending an appeal. ECONOMY & LABOR Survey: CT ranked 5th worst state for business Connecticut's business climate is among the 10 worst in the nation, accord- ing to the latest CEO-driven rankings by Chief Executive Magazine. Published by the Stamford-based Chief Executive Group, the 13th annual "Best and Worst States for Business" rankings reflect more than 500 CEO's perceptions of the best and worst states. Those views are based on key mea- sures including workforce, taxes/regulation, living environment, and best com- munication of business incentives. Connecticut was ranked 46th overall, the same as last year. The state ranked poorly for taxation and regulation, but fared better on workforce quality and living environment. One CEO's comment about the Nutmeg State noted, "While we have chal- lenges, the workforce is solid and the quality of life is strong. Its biggest chal- lenge is location between New York and Boston, as well as a poorly run legisla- ture on both sides of the aisle." States that ranked worse than Connecticut were California, New York, Illinois and New Jersey. Texas, Florida and North Carolina were the top three states for business for the third straight year. BIOSCIENCE Ark. drugmaker to open Windsor plant An Arkansas drugmaker has chosen Windsor for its new 90,000-square-foot pro- duction facility that will employ about 361 by 2021, state and company officials say. SCA Pharmaceuticals, of Little Rock, employs 210 workers and makes injectible drugs in ready-to-administer dosages for use at hospitals and healthcare facilities. With an $8.5 million loan from the state, SCA will lease 755 Rainbow Road and make improvements, including buying machinery and equipment, the gov- ernor and state Department of Economic and Community Development officials said. The funding requires approval from the state Bond Commission, which the governor chairs. ADVERTISING, MEDIA & MARKETING Sinclair to buy Tribune Media in $3.9 billion deal Sinclair, America's biggest owner of local TV stations, is about to get even bigger. Last week, morning the company agreed to buy Tribune Media for $43.50 per share, valuing the deal at $3.9 billion. Sinclair will also assume about $2.7 billion in net debt, according to the joint announcement. Tribune operates dozens of TV stations across the country, includ- ing Fox 61 in Hartford. It also has a cable channel, WGN America; a 32 percent stake in the CareerBuilder web site; and a 31 percent stake in the Food Network. – CNNMoney EDUCATION CBIA, education reform council affiliate to boost workforce The Connecticut Business and Industry Association said it is affiliating with the Connecticut Council for Education Reform to enhance both groups' education and workforce initiatives. The new organization will be the CBIA Education & Workforce Partnership, combining CBIA's statewide public profile to raise awareness among policymakers and stakeholders regarding Connecticut's achievement gap, which the organiza- tions are working to close in order to bolster the state's workforce. Established as the CBIA Education Foundation in 1983, the CBIA Education & Workforce Partnership works with businesses and other groups statewide to strengthen the talent pipeline and encourage economic growth. Andrea Comer, formerly executive director of the CBIA Education & Workforce Part- nership, will now serve as the partnership's vice president of workforce strategies. HEALTH CARE Hartford HealthCare to open $5.9M family center in Southington Hartford HealthCare said Wednesday it will open a new $5.9 million family health center in Southington this fall that will offer new and expanded services and add 50 new jobs. The 48,000-square-foot, three-story facility, slated to open on Queen Street in September, will include neurology services for stroke, epilepsy, neurosurgery, EEG's and EMG's; offices for specialty services that include general surgery to podiatry, and bariatric surgery; and a community health education room. BY THE NUMBERS 361 The number of employees who will eventually be housed at SCA Pharmaceuticals' new Windsor location, where the Arkansas-based injectable-drug maker is opening a new 90,000-square-foot production facility. 46th Connecticut's U.S. business climate ranking in a new CEO-driven report published by Chief Executive Magazine. 17 The number of Connecticut companies that have been named to Forbes magazine's list of the best large 500 companies in the nation. 5.4% The percentage of Hartford area property owners who held delinquent mortgages (at least 30 days past due) in February, which was down from 5.9 percent a year earlier, according to CoreLogic. TOP 5 MOST READ on HartfordBusiness.com ■ CT ranked 5th worst state for business ■ Most CT insurers propose double-digit rate hikes ■ Ark. drugmaker to open Windsor plant ■ CityPlace II is United's branch choice ■ S&P Global: CT fiscal troubles could lead to strains on credit 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 LinkedIn: www.linkedin.com/company/ the-Hartford-Business-Journal Daily e-newsletters: HBJ Today, CT Morning Blend www.HartfordBusiness.com/subscribe Weekly e-newsletters: CT Green Guide Weekly, CT Health Care Weekly www.HartfordBusiness.com/subscribe WEEK IN REVIEW I M A G E | C N N

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