The high cost of living in Connecticut is a persistent problem. This year, our state dropped to 39th place on CNBC’s annual Top States for Business rankings, earning two “F” letter grades for state economy and cost of living and a “D” letter grade for cost of doing business. Earned.

Health insurers recently requested an average rate increase of 20.4% for individual health plans next year, and an average rate increase of 14.8% for small-group plans sold on Connecticut’s affordable healthcare exchange. was given. Our medical expenses are also among the highest in the country.

Twelve years after the law was enacted, the continued price hikes are also a startling rebuke to the promise of the Affordable Care Act itself.

Real people in Connecticut — self-employed contractors with families, small business owners trying to do the best for fewer than 50 employees, and many individuals — know how to pay for health insurance. I can’t sleep tonight because my stomach hurts. .

What can serious politicians do? Stop harming immediately.

Politicians need the Hippocratic Oath.

Connecticut has 68 mandatory health plan benefits and services, and there is demand for insurers to provide health plans both in and out of state for individuals and small groups, which comprise approximately 30% of Connecticut’s health insurance market. It is one of the highest states in the country. This is the only part of the market that state politicians can control.

The remaining 70% of the market is individuals and families with health insurance from large companies such as Sikorsky and Pratt & Whitney. These medical plans are regulated by federal law and are not affected by state mandates.

All of these mandates have contributed to higher health insurance premiums for contractors, small business owners, and individuals. The Connecticut Business & Industry Association estimates that each enrollee will pay an additional $2,085.48 in her premium costs for these 68 benefit obligations through the 2019 plan.

Another major factor in cost is the valuation charged to the insurer. Among the valuations is the cost of running the state health exchange itself, which in 2021 cost him $32 million. This $32 million was billed to insurance companies and passed on to contractors, small business owners and individual subscribers through higher premiums.

Moreover, these orders pass Congress without a cost-benefit analysis. For example, in 2022, SB358 (a bill to expand existing breast cancer screening) and HB5386 (a bill to set the price of the EpiPen at $25) were passed without reporting from the Health Benefits Review Program. Fundamental questions about what part of the population will take advantage of the benefits, to what extent those benefits are already available, and what the cost of these obligations will be for individuals, insurers and employers.

And a Health Insurance Review Program report showed that politicians and bureaucrats’ pricing of any product, especially life-saving medical devices like the EpiPen, creates price distortions and shortages for that very product. It’s possible.In “Economics in One Lesson” by Henry Hazlitt, government price controls are a bad idea.

Insurance companies are exiting the Connecticut market. Harvard Pilgrim has withdrawn his small group plan and as of January 2023 he is affecting 12,000 registrants. Connecticare, a health insurer founded by a group of doctors 40 years ago, lost more than $65 million in 2022 to the private market.

State officials have tried to innovate, but without serious effort, efforts are futile, as evidenced by a project utilizing the University of Connecticut to develop the state’s health information network. Fixed earlier this month.

Connecticut politicians should look in the mirror when asking who is driving up health insurance premiums in the state.

Once we get past their self-examination, we can move on to the visionary work of reforming our healthcare system to offer more choice, higher quality, and lower costs. Rather than service-by-service healthcare that encourages more tests and services, we need transparent pricing, payment reforms, and value-based healthcare that matches health and financial outcomes.

We will get the government we deserve. If you want a serious politician, Become serious citizen. We take information and engagement seriously. There is no easy way. We must roll up our sleeves and be patient, one step at a time, demanding better laws and better processes.

Addressing the big public policy challenges takes patience, focus, dedication and attention, but it’s not brain surgery.we can thrives in Connecticut.

On August 11th, I hosted City Hall via Zoom as part of my summer public policy series. “Why is healthcare so expensive in Connecticut and what can be done about it?” A transcript of the conversation is available on my legislative website www.repfiorello.com.