by Christian Wade
Connecticut’s health care expenses increased by 6% to $34 billion in 2021, according to a new report, exceeding a goal set by Gov. Ned Lamont to limit the state’s cost growth.
The first annual Connecticut Healthcare Cost Growth Benchmark report said the state spent $34 billion on health care and insurance costs in 2021, up from $31.9 billion in 2019 and $30.9 billion in 2020. That’s higher than the 3.4% growth benchmark set by the Lamont administration three years ago.
The increased costs in 2021 were driven by an 18.8% increase in commercial health insurance spending while increases in Medicare and Medicaid were more modest, according to the report.
Connecticut’s increase in commercial growth was larger than in other states with benchmarks such as Massachusetts, Rhode Island and Oregon, the report noted.
Lamont, who was sworn into a second term in January, has made containing healthcare costs a key plank of his agenda. He issued a statement saying the report’s findings “reinforce the need for more sweeping action to ensure equitable access to affordable health care to all residents of Connecticut.”
“This report shines a light on healthcare costs that will enable us to hold accountable those parties responsible for excessive increases,” the Democrat said. “Additionally, it will inform the development of solutions to address the problem.”
The report shows that Connecticut overall met its target to spend 5% of total health care costs on primary care in 2021, but commercial payers didn’t meet the 5% benchmark, Lamont said. The state has also set a goal of reaching 10% of spending on primary care by 2025.
“This target was set to better align household income, the state economy, and healthcare costs,” said Dr. Deidre Gifford, executive director of the Office of Health Strategy. “The fact that healthcare increases are outpacing income and economic growth means that affordable healthcare is out of reach for many Connecticut residents.”
Lamont has filed a package of legislation aimed at reducing Connecticut’s skyrocketing health care costs, which are among the highest in the nation.
A key proposal calls for reducing facility fees that hospitals charge patients during treatments, which Lamont says would save consumers more than $400 million a year. Another proposal calls for eliminating “anti-competitive” practices in health care by limiting out-of-network costs for inpatient and outpatient services, among other provisions.
Lamont has also pitched a plan to tap into the state’s share of federal pandemic relief funds to “erase” an estimated $2 billion in medical debt owed by the state’s residents.
Still, the plans have faced pushback from the health care industry, which says his proposal to eliminate facility fees would cost hospitals hundreds of millions of dollars a year in lost revenue.
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Christian Wade is a contributor to The Center Square.
