Connecticut Seal

General Assembly

File No. 526

    January Session, 2011

Substitute Senate Bill No. 1204

Senate, April 14, 2011

The Committee on Public Health reported through SEN. GERRATANA of the 6th Dist., Chairperson of the Committee on the part of the Senate, that the substitute bill ought to pass.

This act shall take effect as follows and shall amend the following sections:

Section 1

from passage

New section

Sec. 2

from passage

New section

Sec. 3

from passage

New section

Sec. 4

from passage

New section

Sec. 5

from passage

New section

Sec. 6

from passage

New section

Sec. 7

from passage

New section

Sec. 8

from passage

New section

Sec. 9

from passage

New section

Sec. 10

from passage

New section

Sec. 11

from passage

New section

Sec. 12

from passage

New section

Sec. 13

from passage

New section

Sec. 14

from passage

1-79(l)

Sec. 15

from passage

1-120(1)

Sec. 16

from passage

1-124

Sec. 17

from passage

1-125

Sec. 18

from passage

17b-261(a)

Sec. 19

from passage

New section

PH

Joint Favorable Subst.

 

 

Clients

State Cost per year

Impact

Remove clients from HUSKY A

-31,000

$2,350

-$72,850,000

HUSKY A BHP Cost

31,000

$1,3757

$42,630,000

Net Savings

   

-$30,220,000

 

State Cost – HUSKY Level

State Cost – LIA Level

Clients

80,250

80,250

Per Person Cost

$6,000

$9,000

Non-HUSKY BHP Cost

$481,500,000

$722,250,000

Per Person Federal Subsidy

($3,325)

($3,325)

Non-HUSKY BHP Federal Subsidy

($266,831,250)

($266,831,250)

Net State Cost Non-HUSKY BHP

$214,668,750

$455,418,750

 

Cost Less HUSKY A Savings

$184,443,750

$425,193,750

Yea

18

Nay

10

(03/30/2011)

TOP

1 It is estimated that by 2014, there will be approximately 81,000 enrollees in the existing LIA coverage group, at a cost of $728 million annually. Based on this enrollment pattern, the expansion to 133% FPL would add an additional 32,000 clients, with annual costs of $288 million.

2 Based on DSS cost and caseload data for the adult 133% - 185% population. Costs inflated at 5% annually.

3 This assumes 31,000 former HUSKY A parents and 80,250 non-HUSKY adults. According to Connecticut Department of Revenue Services data, there were 225,000 tax filers with incomes between $14,000 and $22,000 in 2009. The U.S. Census Bureau estimates that 29% of individuals with incomes under $25,000 are uninsured. This would yield approximately 65,250 individuals. It is further assumed that 15,000 of those in this income bracket who currently have insurance would transition to BHP, for a total of 80,250 non-HUSKY BHP enrollees.

4 A portion of high cost Medicaid clients who currently spend down to Medicaid eligibility are likely to instead spend down to the BHP.

5 Although the cost of the Silver Plan has not been established, the Congressional Research Service and Congressional Budget Office have used $4,500 as a general estimate. The final average cost of the Silver plan will be dependent upon the benefit plan as well as the cost profile of the individuals enrolled.

6 PPACA includes maximum client premium and cost sharing for Exchange products, which vary by income limit. Based on these requirements, this analysis assumes that a client's share of the premium would average $1,000 (derived from Kaiser Family Foundation estimates). The federal subsidy available for the BHP would be 95% of the federal share of the cost of the Silver Plan. Therefore, the federal subsidy would be $3,325, which equates to ($4,500 - $1,000)*95%. It should be noted that the federal subsidy will not consider any state health mandate costs that are in excess of the essential benefit package. Also, PPACA indexes the federal subsidy to the Consumer Price Index (CPI). If the average cost of the Silver plan increases at a higher rate than the CPI, the real value of the subsidy will decrease over time.

7 State HUSKY BHP cost is the cost of care ($4,700) less available federal subsidy ($3,325)