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AG Wants New Bids After Changes to Health Plan for Low-Income Children
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Governor Rell has reversed course on changes to the state health insurance plans for children and the uninsured after complaints that new networks would not provide adequate care. Now, there are calls to solidify that with a new bid process for insurers.

The state Department of Social Services announced late Friday that it was changing the rules for doctors, hospitals and insurers who are part of the Husky program for low-income children and their parents. Governor Rell had to plan to require them to provide care for uninsured adults in the new Charter Oak plan. 

But advocates, legislators, and even Connecticut's congressional delegation warned that that approach was jeopardizing Husky clients' access to care because not enough doctors and hospitals were part of the new provider networks. Rell responded by delinking the two programs. 

Connecticut Attorney General Richard Blumenthal praised the governor for making the change. Now he says the state needs to rebid the contracts to reflect the new rules.

"We're not only recommending it. We're saying that almost certainly it is a legally necessary step at this point to avoid challenges from managed care organizations that declined to participate because of the requirements at the time that now have been abandoned."

Blumenthal also called on the administration to keep Husky families in their current networks until after another round of bids.

DSS spokesman David Dearborn says the governor does not think a new request for proposals is necessary. He says he is not aware of any insurer that did not bid because of the coupling of the two programs.

Meanwhile, state health care advocate Kevin Lembo says the new ground rules may mean that the Charter Oak plan needs to narrow its focus. Without Husky children in the same pool, he says the costs may go up for providers and require higher reimbursements from the state. 

UPDATE:  In a letter to the Attorney General released Monday evening, DSS Commssioner Michael Starkowski clarified that Rell did not delink the Husky and Charter Oak health plans. Managed care organzations are still required to administer both plans; they just may now enroll providers separately.