Connecticut Senate Bill SB00190

Connecticut 2011 Regular Session

• Introduced: 1/19/11
• Refer: 1/19/11

Caption

An Act Concerning Retiree Health Insurance.

Impact

The proposed amendments would significantly impact state laws regarding retiree health insurance. By raising the age and service requirements for eligibility, the bill seeks to reduce the number of state employees who qualify for health benefits upon retirement. This could lead to substantial long-term savings for the state in terms of health insurance costs but may also generate concern among state employees nearing retirement, as they could find themselves without subsidized health insurance later in life.

Summary

SB00190, titled 'An Act Concerning Retiree Health Insurance,' was introduced by Senator Boucher and aims to amend the existing laws governing health insurance benefits for state employees. The key changes proposed in this bill are the redefinition of the eligibility criteria for retirement health benefits from a 'rule of 75' to a 'rule of 80' and an increase in the health insurance premium contribution required from retired state employees who have less than 25 years of service. This change is intended to align benefits more closely with service years and age at retirement.

Contention

The bill has sparked debate among stakeholders, particularly regarding its fairness and implications for long-serving state employees. Proponents argue that the increased contribution from retirees is necessary to ensure the sustainability of the health insurance fund amid rising healthcare costs. However, critics contend that such changes disproportionately affect those who have dedicated many years to public service, as it penalizes employees who have shorter careers due to various factors including economic downturns or job availability. This aspect of the bill has the potential to be a major point of contention during legislative discussions.