By Jonathan Dube

HARTFORD -- A HEALTH BILL that would place tighter restrictions on the managed-care industry is withering in the hands of a local state senator who has no intention of letting it survive.

The House bill would increase state supervision of managed-care companies by requiring state licenses to operate, instituting routine quality checks and creating a state-run grievance process for patients who are denied coverage.

But the bill has met heavy opposition from the health-care industry, which claims the regulations would saddle insurance companies and customers with millions of dollars in increased costs.

Sen. Louis DeLuca, R-Woodbury, holds all the cards right now; the bill is under the control of the Insurance Committee he co-chairs. Unless he calls a vote on it by Tuesday afternoon, the bill will die.

And DeLuca, who is trying to shepherd a less restrictive managed-care bill through the Senate, said he has no intention of letting the House bill come to a vote.

"They would have to do a lot of persuading to get me to change my mind," said DeLuca, who also rep-resents Southbury, Brookfield, Bridgewater and part of New Milford.

General Assembly bills are like cats, though, in that they have many lives. Thus even if the House bill dies in its current form, House Democrats intend to resurrect its key components, most likely as an amendment to another bill.

"The managed care concept will come up for a vote in the House," said House Majority Leader Moira Lyons, D-Stamford, who believes the bill is necessary to protect patients.

But even if the Democrat-controlled House approves such a bill, it's unlikely that the Republicans, who control the Senate, would pass it. They are expected to pass DeLuca's bill, which is ready to come to the floor for a vote as soon as next week.

DeLuca's bill would do three things, all of which are in the House bill in some form. It would require insurance companies to fully disclose coverage provisions and establish a state task force to study consumer satisfaction.

The bill also includes an "anti-gag rule," which would forbid insurance companies to prohibit doctors from discussing options they don't cover. But while DeLuca's bill might pass the Senate, Democrats would be unlikely to let it through the House, particularly if DeLuca kills their bill in his committee.

"If that happens, I would guarantee you that the (Senate) bill would not make it through the House," said Rep. James Amann, D-Milford, the other co-chair of the Insurance Committee. "And I think it's a shame.

Democratic leaders said the only way any managed-care bill will pass both houses this session is if the two parties reach some sort of compromise.

Knowing that, Lyons met earlier this week with Senate Majority Leader James Fleming, R-Simsbury, to negotiate a compromise, but word around the Capitol is that the meeting was not cordial. Lyons, one of the leading proponents of the House bill, said she is frustrated by the logjam.

"What's wrong with letting something proceed when we might have been able to reach some sort of compromise, rather than do something antagonistic?" she asked, referring to DeLuca's plans to let the House bill die. "For whatever reason, they don't choose to negotiate on this issue, which I find troubling and sad."

DeLuca said he is willing to listen to anything the Democrats have to say, but added that it's unlikely he'll be swayed.

"The House bill, while it might be well-intentioned, is extremely costly," DeLuca said. "This bill could be extremely damaging to individuals and businesses and could, because of its high cost, stop some businesses from providing health care."

Nick Albertson, coordinator of the Northern Fairfield County Healthcare Coalition, said the 40 private and public Danbury-area employers his group represents are concerned about the consequences of the House bill.

In fact, the Connecticut Healthcare Coalition released a study Thursday that claims the bill could increase employers' health care costs by as much as 5 percent. About 1 million Connecticut residents are covered by managed care companies, according to industry figures.

Legislators who oppose the bill, however, are more concerned with the Office of Fiscal Analysis' estimate that the bill could cost the state $5.3 million to implement. Proponents argue that those costs eventually would be recovered through the licensing fees insurance companies would pay.

DeLuca said he's not necessarily against some of the ideas in the House bill, but thinks more time is needed to study the issues.

"I'm not against them, but I'm not in favor of doing these things right now," DeLuca said. "Managed care is basically a new concept. We're not going to do it all at once. But let's take some meaningful steps toward making some changes now."

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