Substitute House Bill No. 5559 proposes the establishment of a Basic Health Program (BHP) in Connecticut, set to take effect on July 1, 2026. This program aims to provide subsidized health insurance to state residents under the age of sixty-five who have a household income between 133% and 200% of the federal poverty level and are ineligible for existing medical assistance programs. The BHP will be funded primarily through federal payments, covering 95% of the health insurance premium tax credits and cost-sharing reductions that would have been available under the Affordable Care Act. The bill also mandates the creation of a "basic health program account" to manage funds for the program and requires the Commissioner of Social Services to seek federal approvals and report on the program's operations and finances every six months until January 1, 2030, and annually thereafter.

Additionally, the bill establishes a working group composed of various stakeholders, including state officials and health insurance experts, to oversee the program's design and implementation. This group is required to submit a report with recommendations by December 1, 2026. The bill includes new legal language regarding the establishment of the BHP and the working group while deleting any conflicting provisions in current law. Key provisions also emphasize the need for public hearings and stakeholder engagement prior to implementation, ensuring that the BHP provides benefits at least as comprehensive as those in the state's essential health benefits package.