State Senator Donald E. Williams, Jr.
January 3, 2008
Williams Waits For Industry Response to Governor’s Charter Oak Prospectus
Expresses concerns, reservations on aspects of health plan RFP
Responding to news today that the state Department of Social Services has issued its request for proposals (RFP) on the Charter Oak Health Plan, the General Assembly's leading health-care advocate Senate President Pro Tempore Donald E. Williams, Jr. (D-Brooklyn) said that industry responses will speak volumes for the plan's overall feasibility and affordability.
"The legislature appropriated $11 million so that Governor Rell could try to sell her plan for a quality, low-premium health plan to private insurance companies," said Senator Williams. "I look forward to seeing what her RFP brings and if her proposed costs and enrollment figures are truly realistic."
The governor has estimated that the Charter Oak plan will cover about 32,800 of Connecticut's 400,000 uninsured, at premiums ranging from $75 to $250, with premium assistance available for enrollees with incomes up to 300 percent of the federal poverty level.
"The responses to this request for proposals will be extremely telling," said Senator Williams. "Can the insurance industry deliver a quality health plan for a premium between $75 and $250? If not, how are we defining 'affordable'? Is $11 million enough to cover premium assistance if enrollment is greater than expected? Is this a feasible plan that will help solve the health care problems in our state? These are all questions that the governor has speculated answers for, but until proposals come in, it's all just speculation on the part of the administration."
Of considerable concern to the senator is the proposed 20 percent co-pay for laboratory, x-rays and diagnostic services.
"A 20 percent co-pay on diagnostics like Strep screenings and cholesterol tests may not break anyone's bank, but when we start talking about 20 percent of colonoscopies and endoscopies, MRIs, CT Scans, and biopsies, the affordability of 20 percent for low-income individuals and families really comes into question," said Senator Williams.
Senator Williams also expressed reservations regarding the governor's decision to package the state's HUSKY health care program for children with the Charter Oak prospectus.
"I am concerned that the governor has combined HUSKY services with the Charter Oak request," Senator Williams said. "A major component of the HealthFirst and Healthy Kids legislation enacted last year was the significant increase in our state Medicaid reimbursement rates, something done to improve access to health services, not to sweeten the deal for private providers. The last thing that I want to see is that investment being wasted as HUSKY becomes a bargaining chip for the governor's Charter Oak project."
The projected start date for the Charter Oak Health Plan is July 1, 2008.
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