Constitution State News

The National Federation of Independent Business (NFIB) has released a health care policy paper highlighting the increasing unaffordability of health insurance for small businesses in Connecticut. The report, titled "Addressing the Health Insurance Affordability Crisis for Small Businesses," indicates that the small-group insurance market is becoming unsustainable for many small businesses and their employees.

Andy Markowski, NFIB Connecticut State Director, expressed concerns over the escalating costs. "Continuously rising health insurance costs are a significant burden for Connecticut’s small businesses," he stated. He noted that these costs have been a primary concern for decades and emphasized the crisis in Connecticut's small-group market, where premiums are increasingly untenable.

The report highlights several key findings:

- Enrollment in the small-group market has dropped significantly from 15 million individuals in 2014 to 8.5 million in 2023, marking a 44% decline.

- Average single plan premiums have increased by 120% over two decades, while family plan premiums have risen by 129% for firms with fewer than 50 employees.

- Only 30% of small businesses currently offer health insurance, compared to nearly 50% in 2000.

- A staggering 98% of small businesses express concern about their ability to continue offering health insurance within five years.

- Small businesses face higher costs compared to larger firms; those with less than $600,000 in revenue spend nearly 12% of payroll on health benefits, as opposed to 7% spent by firms earning over $2.4 million.

Markowski also warned about legislative actions that could further exacerbate these challenges. He remarked, "If Connecticut legislators continue to make it more expensive and more frustrating for small businesses to provide health insurance to their employees, Main Street businesses lose. Their employees lose. We all lose."

The report proposes several legislative recommendations:

- Protect employer-sponsored insurance

- Safeguard access to affordable stop-loss insurance

- Allow employer pooling arrangements such as Association Health Plans

- Support targeted tax credits for small business health insurance

- Expand Individual Coverage Health Reimbursement Arrangements (ICHRAs)

- Encourage competitive healthcare and insurance markets

- Discourage hospital consolidation

The NFIB has been advocating for America's small and independent business owners since its founding in 1943. The organization remains dedicated to addressing the needs of these enterprises across all states.