Aetna wins state contract for lower-cost state employee health insurance, cutting into sizable CT

Aetna wins state contract for lower-cost state employee health insurance, cutting into sizable Connecticut’s public debt


HARTFORD — A contract with Aetna to become the state’s Medicare Advantage administrator for the state health plan that will save $400 million over three years is another blow against Connecticut’s sizable debt, Gov. Ned Lamont said Wednesday.

The state faces daunting challenges to reduce long-term debt bonded for capital projects, unfunded pensions and other benefits. Lamont, seeking a second term this November, used a news conference outside the state office building to announce the welcome cost savings.

The contract that Aetna won in a competitive bid covers 57,000 Medicare-eligible retirees and their dependents and is estimated to reduce the state’s unfunded liability by $7.5 billion. Medicare Advantage is a popular health insurance plan that provides Medicare benefits through a private sector health insurer.

Lamont said he’s been “fixated” on fixed costs, such as debt hindering economic growth that he compared to “running the road race with cement overshoes.” The state is paying down pension obligations and is spending less as a percentage of the budget on bonded debt, he said.

Read more: https://www.courant.com/news/connecticut/hc-news-aetna-state-retirees-medicare-advantage-20220601-golkv6f7vfcbrm2bybyeafoksu-story.html