January 13, 2012

OPM Raises Concern about Health Insurance Pooling


Legislation passed last session opened up the state employee health insurance pool to municipal employees. However, the December 21st edition of HartfordBusiness.com cites an Associated Press report that state Office of Policy and Management director Benjamin Barnes has written to Comptroller Kevin Lembo that he's worried the state could face financial exposure if only small groups of city and town workers are pooled into the self-insured, state employee and retiree health insurance system.

Barnes' main concern, according to the report, is that collective bargaining rules will prevent most municipal employees from joining the state insurance pool, which could leave Connecticut adding only a small group of older, sicker municipal workers that will drive up costs through higher utilization rates.

Barnes said he wants a closer analysis of the risk involved before the state moves forward with the pooling concept. The state plan is scheduled to be opened to municipal workers next month.