STATE OF CONNECTICUT
THE STATE COMPTROLLER
WYMAN ANNOUNCES COST-SAVING CHANGES TO STATE HEALTH PLAN
Savings Could Reach $75 Million Over Next Two Years
|Contact: Steve Jensen|
State Comptroller Nancy Wyman today announced a series of changes to the state employee and retiree health insurance plan that could save about $75 million from current budget estimates over the next two years.
The anticipated savings are the product of recently-concluded negotiations with state insurance carriers that resulted in significant restructuring of the plan, which covers medical, dental and pharmacy services for 188,000 employees, retirees and their families.
"I am very pleased that we were able to negotiate a plan that retains a quality benefit while greatly reducing the estimated costs to taxpayers," Wyman said.
New contracts awarded to Aetna, HealthNet, Anthem, United Healthcare/Oxford and Pharmacare are expected to cost $45 million less in the first year than what has been budgeted by the Governor and the General Assembly. Another $30 million in savings below the second-year budget is expected if current utilization and cost trends continue, Wyman said.
The structure of the new contracts is as follows:
The new contracts represent an overall 4.2% percent cost increase at a time when double-digit annual increases are typical. Wyman said she was able to negotiate the lower increase by introducing increased competition among the bidding carriers for specific aspects of the plan.
The State Comptroller appreciates input on this and other issues from residents of the state. Please feel free to contact her office by phone - (860) 702-3300; mail - OSC, 55 Elm Street, Hartford, CT 06106; or, via E-mail - firstname.lastname@example.org
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For Immediate Release
April 27, 2005
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