OFFICE OF FISCAL ANALYSIS

Legislative Office Building, Room 5200

Hartford, CT 06106 (860) 240-0200

http: //www.cga.ct.gov/ofa

sHB-6582

AN ACT ESTABLISHING THE CONNECTICUT HEALTHCARE PARTNERSHIP.

AMENDMENT

LCO No.: 7725

File Copy No.: 259

House Calendar No.: 225

OFA Fiscal Note

State Impact: See Below

Municipal Impact: See Below

Explanation

The amendment requires the Comptroller to offer the option of a high deductible health plan (HDHP) and health savings account (HSA) to state employees and employers procuring health insurance or health care pursuant to section 5-259 of the general statutes, as amended by the underlying bill. This would require negotiation and agreement with the State Employees Bargaining Agent Coalition (SEBAC) to amend the current SEBAC agreement which expires 2017 and establishes benefits offered under the state employee health plans. Assuming SEBAC approval, there is a potential for budget savings due to shifting health care costs to employees through high deductibles. These potential savings would be based on future participation levels in the HDHPs and cannot be determined at this time.

If municipalities offer HDHPs and HSAs to their employees, either as an option or in lieu of their current health care benefits, there is a potential for similar budget savings, which cannot be determined at this time. To the extent that there is participation in the HDHPs and HSAs, contributions to HSAs could potentially result in a minimal revenue impact due to reduced withholdings taxes.

The Out Years

The annualized ongoing fiscal impact identified above would continue into the future subject to inflation.

Background

A high deductible health plan is a health insurance plan with lower premiums and higher deductibles than a traditional health plan (an exception is preventative care) . As of 2009 HDHPs have a minimum deductible of $1, 150 and maximum of $5, 800 for individual coverage and a minimum of $2, 300 and maximum of $11, 600 for family coverage.

Sources: Implications of High-Deductible Health Plans, The Commonwealth Fund

IRS Publication 969

The preceding Fiscal Impact statement is prepared for the benefit of the members of the General Assembly, solely for the purposes of information, summarization and explanation and does not represent the intent of the General Assembly or either chamber thereof for any purpose. In general, fiscal impacts are based upon a variety of informational sources, including the analyst's professional knowledge. Whenever applicable, agency data is consulted as part of the analysis, however final products do not necessarily reflect an assessment from any specific department.