A Democrat-led bill that would create a $200 million trust fund for health coverage cleared a Connecticut state Senate committee, according to a March 19 news release.
The money would move from the state’s emergency federal response fund into the Connecticut Affordable Health Care Trust Fund. The funds will go toward the “Connecticut Option,” a subsidy program. While Connecticut previously committed to offsetting the expired ACA enhanced subsidies, this initiative would offer additional support for those under 200%, and between 400% and 600% of the federal poverty level.
Despite similar language, this program differs from the Connecticut Option Gov. Ned Lamont suggested. In his 2027 budget proposal, Mr. Lamont said he wants to assess the possibility of a publicly created but privately administered health plan. This session, he brought up legislation to evaluate the feasibility. The state Senate’s bill does not address private administration but does acknowledge how “a buy-in option for a health plan that mirrors Medicaid” could fall under the subsidy program’s scope.
Under the bill, the state would also pursue a basic health program, run by the Department of Social Services, for those between 133% and 200% of the federal poverty level. The program would include benefits, cost-sharing limits and other safeguards. The basic health program would not pull from the trust, instead having its own account.
The bill also speeds up nonurgent prior authorizations. Carriers would have two business days, not seven calendar days, to evaluate.
The news release further added that this legislation comes as the state expects to lose 100,000 Medicaid enrollees due to the One Big Beautiful Act. Many states have also faced ACA enrollment losses in the fallout of enhanced tax credit expiration.
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