Politics & Government

UPDATE: Malloy Rejects Allowing Extended Health Care Plans

Written by Davis Dunavin

[Editor's note: Statements from state Rep. Larry Cafero of Norwalk, a Republican and minority leader in the state House of Representatives, and House Speaker Brendan Sharkey, D-Hamden, are now attached at the bottom of this article.]

In a statement from his office today, Gov. Dannel Malloy said he didn't think the Affordable Care Act solution proposed by President Barack Obama — allowing consumers to return to their cancelled health care plans — would hold water in Connecticut.

"Residents of my state are frustrated about this situation and so am I," said Malloy. "The truth is that the solution offered last week won’t work for Connecticut. To those who think we should have a special session because there’s some magical way for us to fix the issue, I say you’re wrong."

Connecticut joins its neighboring states — including New York, Rhode Island and Massachusetts — in rejecting the measure. Malloy defended his decision by saying 36% of consumers would not have been impacted by the president's proposal in any case, and that insurers are not obliged to allow former planholder back, or to offer them the same rates.

"Even if they changed their minds and decided to renew them, we know that rates on those plans would increase significantly this year, and again next year."

The offer "simply doesn't apply to Connecticut," according to a fact sheet from Malloy's office — the state's insurers have said they would not renew any policy which had not already been offered for renewal.

Malloy said Lt. Gov. Nancy Wyman is working on building an alternate insurance exchange.

"In the weeks ahead, staff from Access Health CT and the Connecticut Department of Insurance are going to continue working with private carriers to help anyone and everyone that is losing their plan," he said. "This will include a new coordinated effort that will embed Access Health staff directly into private carriers to better coordinate these efforts."

Wyman said she was confident the exchange would work.

"While no solution is perfect for every policyholder, I believe that many of those who received cancellation notices will be able to secure quality coverage at a reasonable price through our state exchange," she said.

Update 1:13 p.m.:

Here is a news release from state Rep. Larry Cafero, R-Norwalk, minority leader in the state House of Representatives:

House Republican Leader Larry Cafero’s response to Gov. Malloy’s decision not to extend health care policies for those that have been terminated

“The people who have had their policies terminated awaiting word on their fate should have been given at least a one-year reprieve from the governor. Connecticut, unfortunately, finds itself in the same predicament as other states: While we have not experienced the disastrous website failures elsewhere, Obamacare is not working here either.

“The numbers indicate that only 42 percent of those people with individual policies will be allowed to continue on them, leaving an estimated 70,000 without coverage Jan. 1.

“By then, it is likely that fewer people will have coverage than when this process rolled out Oct. 1. The figures released today paint a far worse picture than the one originally described by state officials who initially stated that only 9,000 policies were affected.”  

The bottom line is that 70,000 people find themselves uninsured with 39 days before the Obamacare law requires them to have coverage. They have been left without answers and confused. These 70,000 lives are proof that despite the repeated proclamations by both the governor and Senator Murphy that Obamacare in Connecticut is a success, it has been proven otherwise. Unfortunately, this is only the beginning of the story.

“State government owes its citizens the assistance and clarity to understand how they can protect themselves and their families.”

Update 1:46 p.m.:

Brendan Sharkey, a Democrat and speaker of the Connecticut House of Representatives, released this statement in response to the governor's comments:

“I agree with the Governor’s decision to forgo the President’s recent proposal. Despite problems at the national level, Connecticut’s healthcare marketplace is a model for the country and enables us to connect people with the best healthcare possible at the lowest cost. Though the need for some modifications may develop, a wholesale change to our system in Connecticut would likely cause unnecessary harm.”

Update 1:50 p.m.:

Here is a news release with the governor's full statement, the lieutenant governor's statement and links to state Web pages:

Governor Dannel P. Malloy and Lt. Governor Nancy Wyman today released the following statements regarding the state’s decision to forgo the President’s recent proposal for the Affordable Care Act.  A fact sheet on the announcement and a memo from the Connecticut Insurance Department were also released.

Said Governor Malloy:

“Residents of my state are frustrated about this situation and so am I.  The truth is that the solution offered last week won’t work for Connecticut.  To those who think we should have a special session because there’s some magical way for us to fix the issue, I say you’re wrong.

Find out what's happening in Darienwith free, real-time updates from Patch.

“First, this option would not affect a full 36 percent of individual policies that were carried over from before March 23, 2010.  Second, of the remaining group that could be potentially impacted, insurers have told the state that they do not plan to continue those policies already slated to be replaced, even if given the option to do so.  Finally, even if they changed their minds and decided to renew them, we know that rates on those plans would increase significantly this year, and again next year.

“Thankfully, here in Connecticut, our Lt. Governor, Nancy Wyman, has spearheaded the effort to build an insurance exchange that is working for Connecticut citizens.  In the weeks ahead, staff from Access Health CT and the Connecticut Department of Insurance are going to continue working with private carriers to help anyone and everyone that is losing their plan.  This will include a new coordinated effort that will embed Access Health staff directly into private carriers to better coordinate these efforts.  In addition, I’ve asked Access Health to extend the deadline for new signups to our exchange for one week to December 22, giving consumers a little more time to explore their options.

Find out what's happening in Darienwith free, real-time updates from Patch.

“We’re going to work with people, walk them through their options, and get them covered either on the exchange or with a private plan that makes sense for their needs.  The simple truth is that Connecticut didn’t create this particular problem, but we aren’t going to pass the buck either.  We’re going to step up and do everything we can to get people covered, and continue working towards our goal of good, affordable health insurance for every Connecticut resident.”

Said Lt. Governor Wyman:

“I am proud of the work that our team has done to make Connecticut’s exchange a model for the nation, and that now includes having the flexibility and the expertise to help thousands of our residents continue their health coverage without interruption.  While no solution is perfect for every policyholder, I believe that many of those who received cancellation notices will be able to secure quality coverage at a reasonable price through our state exchange.”

**Download: Fact sheet on Connecticut’s response to the renewal of current healthcare policies


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