In December 2006, Gov. M. Jodi Rell made her Charter Oak Health Plan a centerpiece of her legislative agenda, attempting to cut the state”™s health costs by getting insurance for people unable to afford it.
At least 3,000 people took notice.
In its three days of operation, that many Connecticut residents telephoned the Connecticut Department of Social Services (DSS) with questions and application requests on the Charter Oak Health Plan, which is being administered by Aetna Inc., the AmeriChoice unit of United Health Group and Community Health Network of Connecticut.
DSS estimates at least 15,000 people will enroll in the program in its first year of operation, and triple that number after three years.
The program was a pillar to Rell”™s legislative platform of the recently concluded two-year session, along with education aid to municipalities to spur tax cuts.
The plan is designed to provide affordable health insurance for Connecticut adults who are too old to qualify for the state”™s Healthcare for Uninsured Kids and Adults (HUSKY), but too young to get on Medicare. People eligible for continued insurance benefits after leaving an employer under federal COBRA rules can also opt for the lower-cost Charter Oak program.
Individual premiums range between $75 and $260 depending on income, along with annual deductibles between $150 and $900. The program has an annual limit of $100,000 in benefits and a lifetime cap of $1 million, which advocates for universal care argue does not help people with the most debilitating conditions or injuries.
According to the most recent estimates from the Centers for Disease Control and Prevention, some 13.3 percent of Connecticut residents between the age of 18 and 65 lacked health insurance, or more than 460,000 people. That is already the eighth best rate in the nation, which is led by Massachusetts and Hawaii. CDC estimated the figures from surveys of more than 3,000 residents between 2004 and 2006.
In an effort to better its record, Massachusetts last year began levying tax penalties against residents lacking insurance and businesses that do not offer employees an insurance option.
Nationally, business health insurance costs relative to payroll increased 34 percent between 1996 and 2005, according to a June study by the U.S. Bureau of Labor Statistics. The Connecticut Business and Industry Association has cited health care as a top concern facing the state”™s business climate.
In an op-ed outlining the program, Rell said Charter Oak is the first health plan in the nation for people lacking insurance that does not require income limits, employer mandates or individual mandates.
“Charter Oak was founded on my belief that good health care cannot be a privilege available only to those with the ability to pay,” Rell stated. “If you are a small-business owner, it is hard to afford health coverage for your employees. If you are not able to get health benefits at work, chances are you cannot afford a private policy.”
Last month, Rell vetoed a bill that would have opened up the state”™s health care pool to membership by small businesses, non-profit agencies and municipalities. Rell indicated the deal threatened the insurance premiums the state is able to obtain for public employees, but said she would work with legislators in next January”™s legislative session to determine if the concept could be made to work.
Information on the Charter Oak Health Plan can be obtained at www.charteroakhealthplan.com or by calling 1-877-772-8625.
