DeStefano proposes tax credits, buying pool to expand health ins

April 15, 2006

04/14/2006

DeStefano proposes tax credits, buying pool to expand health insurance

By Keith M. Phaneuf , Journal Inquirer

HARTFORD - New Haven Mayor and Democratic gubernatorial contender John DeStefano Jr. unveiled an extensive plan Wednesday to offer business tax credits to ensure all residents have affordable health insurance.

The plan also would build upon the state's "Husky" program, providing coverage for more low-income adults on a sliding scale.

DeStefano, who estimates has plan would cost $343 million, said he would pay for it by closing loopholes and other breaks in the state's corporate tax system.

"Good health is a good investment for Connecticut," DeStefano said, announcing his plan at Express Kitchens & Flooring, a minority-owned Main Street business struggling with health care costs. "School performance improves when children are healthy. Workforce productivity improves when employees are healthy. Businesses can compete when health care is affordable and tax dollars are saved when individuals have access to preventative care."

The plan hinges on creating a huge health insurance purchasing pool, which DeStefano dubbed the "Connecticut HealthCare Consortium," or CHC. Small businesses, families, and individuals would be allowed to purchase insurance at rates negotiated for the pool, driving down costs, DeStefano said.

A second key component of the proposal involves lowering a larger company's overall corporate tax rate from 7.5 percent to 3.5 percent - provided that firm dedicates at least 5 percent of its payroll to health care insurance costs.

The Husky program also remains in place and expands under the DeStefano proposal.

Connecticut now provides health insurance for adults in households earning 150 percent of the federal poverty level or less. Husky provides coverage for children in households up to 300 percent or less. For a family of three, 300 percent represents an income of less than $48,270.

The new proposal would allow adults in the 150 percent to 300 percent income range to purchase insurance from the new CHC, with premiums set on a sliding scale.

Individuals and companies whose employees complete "wellness assessments" and follow preventative health care plans would be eligible for bonuses to defray some of their health care costs.

"Connecticut needs real leadership to make universal health care coverage a priority," DeStefano said, citing estimates that as many as 71,000 children and 356,000 adults may lack insurance in this state over the course of a year.

DeStefano took aim at Republican Gov. M. Jodi Rell, saying she "has been asleep at the switch," offering no universal health care plan. "Tax dollars continue to be spent on emergency room care rather than on prevention," he added. "Small businesses get no help in providing coverage.
Large employers are allowed to dump their health care coverage and pass on the costs to taxpayers. Job growth in Connecticut is among the worst in the country."

Rell's campaign spokesman, Rich Harris, fired back that DeStefano's plan would harm Connecticut's job market. "He's spent two years complaining about an underperforming economy, and now he's talking about imposing almost $350 million in new taxes on Connecticut employers," Harris said. "I think if he gets his way, we're going to have the best insured men and women in the unemployment line of any state in the country."

Stamford Mayor Dannel P. Malloy, who is expected to face DeStefano in an Aug. 8 Democratic gubernatorial primary said that "for the past several months as I have campaigned for governor, I have been talking about the crisis in health care, the need for universal coverage in Connecticut - and the utter failure of the Rell administration to do anything about it.

"So today I welcome the announcement by my fellow Democrat John DeStefano saying he too would work to ensure universal health care in Connecticut," Malloy continued. "He and I share the same goal."