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.: 7726

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 negotiate with the State Employees Bargaining Agent Coalition (SEBAC) in order to offer the option of a high deductible health plan (HDHP) and health savings account (HSA) to state employees no later than the expiration of the current agreement for health and welfare benefits. With SEBAC approval, there is a potential for budget savings due to shifting health care costs to employees through high deductibles and decreased premium shares for the state. These potential savings would be based on future participation levels in the HDHPs and cannot be determined at this time.

The Out Years

As previously stated, there is a potential for budget savings due to shifting health care costs to employees through high deductibles and decreased premium shares for the state. These potential savings would be based on future participation levels in the HDHPs and cannot be determined at this time. 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.