I think that is great.  I am glad to see the statess working on their own solutions.  I think that before any "national" plan can be implemented we should have several state pilot programs to see what works (and what doesn't).  I think it is great that Connecticut is trying something like this, and it is encouraging that it is based on another state program which has been successful.  However, I do have a couple of concerns.

First, I wonder if employers who are constantly seeing costs of healthcare rise will even bother to offer health insurance in the future.  They might just find it easier and more cost effective to give all of their employees a one-time raise to help them pay for state coverage and never have to worry about increases in premiums again.  Because of the limits of the state plan, I would think that would lead to a large class of "under insured."

Second, I wonder how they pay for the plan.  It is obviously subsidized - where are the additional funds coming from.  My fear is that this will wind up being funded by an additional tax on employers.  That would create a hardship for the many business that do offer better health care to their employees - they would not only be paying the majority (I pay 100%) of their employees' coverage, but also subsidizing everyone else's, including the employees whose employers are not as generous, like the ones I mentioned above who may discontinue their health coverage.  This would seem to be a further incentive for employers to rely on the state system and discontinue their private plans.

These kinds of secondary effects are why I worry so much about a "national" plan. Only time will tell what the real cost of those plans might be.  I sincerely hope that the plan works, but it will take time to really find out.

Best,
Robert A. Franco
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