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In response to stakeholder concerns, at their July 29th meeting the Office of Health Strategy’s (OHS) Technical Team choosing the cap for future Connecticut healthcare costs eased their previous decision on how much healthcare costs for every state resident will be allowed to increase over the next five years. Many stakeholders have voiced concerns that the cap levels are not realistic and could cause harm to patients.

 OHS June 16 capsOHS July 29 caps
20213.1%3.4%
20223.03.2
20232.92.9
20242.82.9
20252.72.9

Between 2002 and 2014, annual increases in Connecticut per capita health costs exceeded the new caps half the time. Over those years, per capita cost increases averaged 5.3% annually, well above the new caps. Under the cost cap proposal, in those six or seven years OHS would have entered secret negotiations with high-cost programs and providers to cut costs. The plans would not be made public.

Advocates and other stakeholders remain concerned about the process, timing and content of OHS’s cost cap project both because it is unlikely to be successful and because the plan risks significant unintended consequences that will harm consumers. Advocates, primary care providers and other stakeholders have offered dozens of better, safer options to improve health outcomes and control costs in Connecticut.