Lyddy: Town Can Save $1.3 Million On State Health Partnership

By John Voket

Newtown’s State Representative Christopher Lyddy told First Selectman Joe Borst in a memo this week that the governor’s support of a health care bill that would give Newtown access to the Connecticut Healthcare Partnership Proposal. Enacting the bill, which passed the state house and senate May 30, would permit municipalities, nonprofit agencies, and certain small businesses in the state to voluntarily access to State Employee Health Plan benefits.

A cost analysis from Rep Lyddy’s office comparing the health care plans currently offered to Newtown employees versus those offered to state employees illustrates that the town could realize a savings of an estimated $1,266,232.68 annually under the new proposal.

“The analysis is based on a comparison of the premium costs of Newtown’s current plans to those of state plans with equivalent benefits,” Rep Lyddy wrote in a cover letter. “It is important to note that this analysis is based on the rates available for Fiscal Year 2009. Health care costs and benefit structures, for both municipal and state employees, can change from year to year.”

Rep Lyddy said the savings Newtown could enjoy is a result of the increased bargaining power and reduced administrative costs available under the state plan.

“Further, participating in the state plan would allow Newtown to realize significant savings without threatening town programs, services or the benefits it provides to attract and retain qualified personnel,” Rep Lyddy wrote.

At press time June 25, Rep Lyddy stood with a coalition of state Democratic leaders putting pressure on Governor M. Jodi Rell to sign the legislation along with a second bill they say will extend health insurance to more people in Connecticut. That second bill creates a new public authority to develop a plan to extend insurance coverage to the state’s uninsured.

Although the General Assembly passed the legislation May 30, Secretary of the State Susan Bysiewicz did not submit it to Gov Rell for her signature until Tuesday, June 23. She did so following a news conference with fellow Democrats, followed by a visit to the governor’s office.

It is unclear whether Gov Rell, a Republican, will sign the bills. She vetoed a measure last year that is similar to one that opens the state’s health insurance plan to municipalities, small businesses, and nonprofit agencies.

(Associated Press content was used in this story.)