Steve Cassano

Cassano Highlights New Laws Taking Effect January 1, 2012

HARTFORD—State Senator Steve Cassano (D-Manchester) today outlined several new state laws that take effect on January 1, 2012, including a host of beneficial new insurance coverage regulations, tax incentives for new job growth and partial loan forgiveness for ‘green’ job majors.

“We made some major strides on several fronts last session, most of which benefit middle-class families,” Sen. Cassano said.

The new laws include:

Tax credits for new job creation

As part of the October special session on jobs and the economy, the legislature passed a comprehensive package of small-business assistance that includes tens of millions of dollars in state-funded small business grants, loans and tax credits.

Beginning January 1, Connecticut businesses can earn tax credits ranging from $500 to $900 for every new employee they hire. Businesses with 50 or fewer employees can earn a tax credit for each new hire; 50-100 employees earns a tax credit for at least five new hires; and over 100 employees earns a tax credit for at least 10 new hires. The credits range from $500 for a new employee to $900 for hiring a veteran.

Expanded insurance coverage for breast MRIs, bone marrow tests, colorectal cancer screening and ostomy supplies

New laws effective January 1 require insurance companies to: pay for a comprehensive ultrasound and magnetic resonance imaging (MRI) of a woman’s breast or breasts if a mammogram shows she has ‘dense’ breast tissue; cover the cost of an annual colorectal cancer screening with no coinsurance, copayment, deductible or other out-of-pocket expense; cover testing to determine compatibility for bone marrow transplants (limited to one free test in a lifetime); and increase the maximum annual coverage for ostomy appliances and supplies from $ 1,000 to $ 2,500.

It is worth noting that of the 135 ‘no’ votes cast against these four insurance bills, 131 were cast by Republicans.

Loan forgiveness for college graduates in ‘green’ studies

One aspect of the Democratic Majority Leader’s Roundtable jobs bill that was passed in 2010 takes effect on New Year’s Day. $3 million is being made available in loan forgiveness grants to any Connecticut resident who graduated on or after May 1, 2010 from a state college or university with a bachelor’s degree in a field related to the promotion of clean energy, renewable energy or energy efficiency; reducing greenhouse gases or carbon emissions; or inventing, designing and applying chemical products and processes to eliminate the use and generation of hazardous substances. The family contribution for the most recent full academic year cannot exceed $35,000, and students are eligible for a maximum loan of $2,500 per year for up to four years.

Also, on January 1, Connecticut will drop its long-standing relationship with private insurance companies to cover the administrative costs of Medicaid and will instead administer these costs itself.

The idea is to provide better care at lower cost; Connecticut spends about $4.5 billion a year on Medicaid (about 23 percent of its annual budget) and may be able to cover another 150,000 needy people with the savings it hopes to achieve.

“This is yet another good example of how Connecticut is doing things differently in a very difficult economy,” Sen. Cassano said.