Rep. Piscopo votes against costly healthcare pooling initiative

On Wednesday, May 20, the state House of Representatives voted to open up the state’s health coverage to thousands of municipal workers and non-profits. State Rep. John Piscopo (R-Thomaston) voted against the measure, citing it’s projected $70 million price tag.

“Before we start costly health insurance pools, we should take a look at reducing the mandates we put on insurance companies that drive up the cost to the consumer,” said Rep. Piscopo. “The bill will also likely add an additional burden on to the taxpayers, at a time when we can least afford it.”

Proponents of the bill make a number of assumptions, many of which are flawed. For example, the bill makes the assumption that the state would be able to realize a cost savings over insurance companies by: paying out claims; the cost of administration for those claims; establishing provider networks; negotiating provider payments; and providing utilization review and disease management services. The state currently doesn’t have the infrastructure in place for any of these purposes.

The proponents also assume that it will be cheaper for a government agency to handle the administration of the claims cheaper. This is a philosophical difference of who does better, less expensive work; government or the private sector?