Even as Republicans in Congress try to undo federal health care reform, the action is shifting to the states, Sarah Kliff says at Politico–and Connecticut is one to watch. The SustiNet program could become a model for a state version of the so-called “public option,” which was excluded from the federal reform bill.

Under a proposal to be submitted to the General Assembly this month, the state would create a health insurance plan that would cover state employees and retirees, Medicaid and HUSKY recipients, and ultimately be sold to municipalities, nonprofits, small businesses and the public.

“I think that if it’s successful, it’s an interesting model,” Anya Rader Wallack, health care advisor to incoming Vermont Gov. Peter Shumlin, told Kliff. “It could potentially provide competition from the public sector within a private business model.”

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