In February, Gov. Ned Lamont proposed the “Connecticut Option” — a publicly created, but privately administered, health plan — in his 2027 budget proposal.
He called for $1 million to outline the policy and conduct a feasibility assessment. He said the state can also explore federal funding opportunities to boost affordability.
“This plan will encourage state employees, retirees and small businesses to go to hospitals where you get the best value,” he said Feb 4 in his 2026 State of the State address. “We will be able to offer you healthcare with no co-pays or deductibles if you sign up to the Connecticut Option, saving you money, saving the state money, and making sure our top-line healthcare is affordable for you. … Don’t let the lobbyists scare you. We can and will finally move to universal, affordable healthcare.”
Mr. Lamont’s broader healthcare strategy includes a tax credit for small businesses using individual coverage health reimbursement arrangements. The state’s marketplace, Access Health CT, has already kicked off a program to offer ICHRAs. Under the proposal, businesses with fewer than 50 employees could file for a tax credit of up to $1,000 per person per year. The program would host $5 million each year, available on a first-come, first-serve basis.
Mr. Lamont also suggested portable benefits accounts, which could provide flexibility for the 6.2% of Connecticut’s workforce who are self-employed and navigate various contracts and jobs. He pitched a redesign of Covered CT, as well, which provides free coverage for adults at or below 175% of the federal poverty level and who do not qualify for Medicaid.
The affordability concerns weighing on Connecticut have been exacerbated by the expiration of enhanced subsidies, the proposal said. The state previously committed $70 million to offset these credits and extended open enrollment.
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