Thatprovision would have created an option to allow individuals andsmall businesses to purchase health insurance and cut premiums byan estimated 20 percent. (Photo: Shutterstock)

Connecticut's attempt to pass legislation authorizing a publichealth insurance option was stymied by fierce opposition fromprivate insurers, who have a big presence in the state.

The Wall Street Journal reports that despite theefforts of State Sen. Matt Lesser, a Democrat who led the proposal,insurers objected so strongly to the public health insurancesegment of the bill that that part of the legislation appears deadin the water—although Lesser said that other portions of the billmight pass. Those include a move to get permission from the federalgovernment to buy prescription drugs from Canada and methodsto control costs in the state's health care system.

Related: Public options in health care making entrance viastates

Among insurers, Cigna Corp., based in Bloomfield, Connecticut,in particular led objections to the public option, calling itill-conceived and denying that it could work. That provision wouldhave created an option to allow individuals and small businesses topurchase health insurance and cut premiums by an estimated 20percent.

“I heard sharply worded concerns” from Cigna, Lesser told theWSJ, adding, “We are taking a step back and evaluating where thingsstand.” He also said that insurers were not happy at the prospectof competing with the state government for customers.

Democrats, including Governor Ned Lamont, supported theproposal, as did the Connecticut chapter of AARP. But not Cigna,whose spokesman said, “This is yet another option no one inConnecticut can afford, and in fact threatens the long-termviability and vitality of the state.”

The spokesman also denied a report that Cigna threatened to pickup its headquarters and go elsewhere if Connecticut was successfulin moving the legislation forward, but earlier coverage from theHartford Courant cited Connecticut ComptrollerKevin Lembo, a Democrat, as saying the company had threatened tomove.

Lamont has said that he's still committed to creating a publicoption in the state, but in a statement said “that for legislationof this magnitude to be successful, the proposal must leverage thebest thinking from all stakeholders, including the carriers,”adding, “Cigna is a vital piece of Connecticut's fabric, and I amcommitted to working collaboratively and constructively withcarriers, stakeholders and advocates.”

One other provision of the legislation that remains live,however, is a reestablishment of the individual mandate, whichrequires people to purchase insurance or pay a financialpenalty.

So far Washington is the only state to have successfully passeda public option, which it did earlier this month, although otherstates considering such a move include Nevada, Colorado, New Mexicoand Illinois.

Read more: 

• 5 notes about Washington's public option, foragents
• Health plan 'down payments' and other attempts tokeep the individual mandate alive
• NYC to fund health care for all, including theundocumented