With health insurance premiums expected to rise in 2025, Republican legislators are expressing frustration at the lack of action when it comes to keeping health care affordable. Sen. Kevin Kelly (R- Stratford) says Republican proposals have continually been disregarded.
Mike Hydeck: It looks like another year of insurance rate increases could be on the way for 2025. The question is, how much? This, after a 12.5 percent hike in 2024 on the state's health exchange. Joining me now is Senator Kevin Kelly, Stratford Republican, elder care lawyer. Good to see you. Also, former co-chair of the Insurance Committee. Boy, this seems like a lot. This could be, if you add them both up, at worst case scenario, a 20 percent increase over two years.
Kevin Kelly: Yeah, and here we are again, after a decade of the Affordable Health Care promises that we're going to have more affordable health care. We have increases year over year. And the fact, Mike, is it doesn't have to be. Republicans have put forward proposals. Reinsurance would reduce premiums by 30 percent. That's $6,000 to the average family of four. That's real money. We also had association health plans, which would allow families…
Mike Hydeck: So can I stop you for a second? The reinsurance, you're talking about when you say reinsurance, you're talking about reinsurance on the exchange itself? Because we have a robust reinsurance community here in Connecticut, for sure.
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Kevin Kelly: We do have. And the thing here is, what reinsurance does is what the federal government did initially under the Affordable Care Act, which was help subsidize the mandates that are put on that. And so what it would do is it would lower premiums for the average family of four. And this way you get cheaper health care. And when you see year over year, premiums increase, it doesn't have to be. We have an idea, and I think it's a good idea. And it would bring relief.
Mike Hydeck: So for people who don't know what reinsurance is, reinsurance is an insurance company has its own insurance. So if they have a big loss, they get reinsured. Is that right?
Kevin Kelly: Well yeah, basically what it is is, if we're going to mandate, like preexisting conditions. If the state is going to say that carriers have to cover certain things that then the state of Connecticut would then pay for some of this to mitigate the increases. Yes, it's a little bit different, but what it does is it brings the relief to middle and working class families, and that's what those promises were all about, was bringing that relief.
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Mike Hydeck: So can state lawmakers do anything about this moving forward? Is there a bipartisan effort here? Is it only on the Republican side? Are you guys the only ones bringing it up?
Kevin Kelly: Well, right now. We've always been here, okay? And we also think you got to get your arms around the cost of health care, too. But what happened this year with no bills coming out of insurance was really a failure on leadership's behalf. We can do better than that. We're Connecticut, okay, but the fact is, we're asking for this, reinsurance, association health plans, which is basically pooling all employees of small companies.
Mike Hydeck: That was my next question. Because that was a thing that, so if I own a pizza place and I have 12 employees, I can get together with other pizza places. We could you buy insurance together?
Kevin Kelly: Yeah, exactly. Don't the families that work in the pizza place deserve the same benefits of the families that work at Sikorsky Aircraft? They do. And if they can get lower insurance by pooling together, which is the whole underpinning of the Affordable Care Act, which was approved by Democrats, ironically.
Mike Hydeck: So where's the pushback here? It's been discussed for years. Why hasn't it happened?
Kevin Kelly: Mike, this is a good question. Primarily because there aren't enough Republicans in the legislature that will actually push this through, because they think this is something that would bring relief to working and middle class families. It's something that was promised to them by the majority, and the majority has all the political power. They have every lever. They could fulfill this promise, but they haven't, and that's the issue.
Mike Hydeck: Why do you think that is? We're the health and for the insurance capital of the world. Are we concerned about our overlords leaning too much on people looking for reelection? I mean, why did this happen?
Kevin Kelly: No, I don't think it's, you know, the insurance companies coming in because, quite frankly, with the citizens election program, you've taken that money out of it. What I really think you have is a majority that has gone further to the left and progressive ideas that they want a single payer system, rather than look at really what will work for Connecticut families. And we're here, willing, ready, able to move forward. We've got good ideas that will do that. That will bring the relief to working and middle class families. We just need more like minded legislators, I would argue Republicans, to get this across the line because the majority isn't doing it, and they've had a decade. And during that decade, all we've seen is premium increase and higher costs, and it's time now for a change.
Mike Hydeck: Do you see the small group insurance collective coming back to the table in the next full session, or do you think that's kind of stalled?
Kevin Kelly: No, absolutely. I don't think a good idea that works for working and middle class families is ever out of style, okay? And while it didn't go anywhere this year, and the committee just failed to do its job, next year, we're going to bring the idea up, and we're going to look at doing whatever we can. I know that Senator Tony Hwang, who was the ranking on insurance, who is a big advocate of this and really working to lower premiums costs for Connecticut's families is going to continue to do that, and I, working with him, and all Republicans will continue to do that.
Mike Hydeck: Well, we're interested to see how it pans out. Senator Kelly, we appreciate it, Senator. Thanks for joining us.
