Bowing to health insurance industry pressure, Republican Governors in Connecticut and Minnesota vetoed legislation that promised to cut health care costs for municipalities and small businesses and to save taxpayer dollars. While Connecticut's initiative was more expansive, both legislation would have authorized the pooling of employees in order for employers to wring more affordable rates and better quality coverage out of the insurance industry.
Connecticut Governor Jodi Rell vetoed HB 5536, the Connecticut Healthcare Partnership, which would have opened the state employee health plan to municipalities, small businesses and non-profits. Pooling small groups with the state employee plan, which has more than 200,000 members, would have generated significant bargaining power and enabled small employers and municipalites to negotiate better insurance rates. While more than 20 states allow similar pooling of state and municipal workers, Connecticut would have been the first to allow small businesses to join the plan at such a large scale. House Majority Leader Chris Donovan, who sponsored the legislation, projected millions of dollars in savings to municipalities who choose to join the state plan. New Haven, for instance, could have saved over $8.6 million in annual employee health insurance costs, freeing up scarce dollars for property tax relief and improvements to roads, schools, and public safety.