The Impact of a Connecticut Public Option on Health Insurance Coverage and State Spending

For the last few legislative sessions, the Connecticut legislature has considered state healthcare reform
proposals whose common element is the implementation of a state administered health plan (or public
option). Connecticut Senate Bill No. 842 (SB 842), introduced during the January 2021 legislative session,
would expand access to a state-administered insurance plan to small businesses, non-profit organizations
of any size, and multiemployer groups (i.e., unions). Critics of the proposal have raised concerns regarding
the impact of an expanded public option in Connecticut on state tax revenue as well as whether
premiums would be sufficient to cover expenses.
The Partnership for America’s Healthcare Future (PAHCF) engaged KNG Health Consulting, LLC (KNG
Health) to assess the effects of a public option in Connecticut, similar to that proposed in SB 842, on
coverage, state spending, and state tax revenue.