House Republican Press Release

March 30, 2006

Press Office: 860-240-8700

Rep. Harkins Supports Legislation to Address Health Insurance Costs for Small Businesses

Hartford—On Thursday, March 16, the Legislature’s Insurance and Real Estate Committee approved legislation cosponsored by State Rep. John Harkins, R-Stratford, designed to help reduce health insurance costs for small businesses. House Bill 5779, An Act Increasing The Availability Of Health Insurance For Small Businesses, now goes before the full House of Representatives for consideration.

The legislation would establish a fund to cover health insurance claims exceeding $40,000. It would directly help businesses with fewer than 50 employees. It would amend statutes involving the state’s non-subsidized reinsurance pool for small businesses. This pool was the first in the nation and is credited with keeping down the price of health insurance premiums for small businesses. It has since become the National Association of Insurance Commissioners (NAIC) model for reinsurance.

“There is no question that the number one problem for small businesses in Connecticut is the skyrocketing cost of health insurance,” said Rep. Harkins, who serves as an Assistant Minority Leader. “This bill is a positive step toward helping these companies, whose success is crucial to the state’s economy. It is imperative that we act now to begin providing real alternatives for people and small businesses that are in need of affordable health care.”

Among those testifying in favor of the bill during a March 14 public hearing in Hartford were representatives from the National Association of Women Business Owners, Anthem Blue Cross and Blue Shield and Connecticut Association of Health Plans.