Constitution State News

The National Federation of Independent Business (NFIB) in Connecticut has released a new health care policy paper highlighting the challenges faced by small businesses in providing health insurance to their employees. NFIB, a key small business advocacy group in the state, detailed in the report titled "Addressing the Health Insurance Affordability Crisis for Small Businesses," that the small-group insurance market is in significant decline, making employer-provided health coverage increasingly unsustainable for millions of small businesses and their employees.

"Continuously rising health insurance costs are a significant burden for Connecticut’s small businesses," said NFIB Connecticut State Director Andy Markowski. He emphasized, "For decades, health insurance costs have been the number one concern for small business owners. As this new paper shows, Connecticut’s small-group market is in crisis, premiums are unsustainable, and small businesses are being forced to make difficult choices among ever-waning options."

According to the report, the small-group insurance market has experienced a considerable decrease in enrollment, dropping from 15 million individuals in 2014 to just 8.5 million in 2023, a 44% reduction. Furthermore, the average premiums for small businesses have risen dramatically, with single plan premiums increasing by 120% over the past twenty years while family plan premiums have gone up by 129% for firms with 50 or fewer employees.

Currently, only 30% of small businesses still provide health insurance, compared to nearly 50% in 2000. The report also indicates that 98% of small businesses are worried about the affordability of continuing to offer health insurance in the next five years. It was noted that small businesses pay approximately twice as much for health insurance compared to larger businesses, with firms earning less than $600,000 in revenue spending nearly 12% of their payroll on health benefits, whereas firms with over $2.4 million in revenue spend around 7%.

NFIB's legislative recommendations include protecting employer-sponsored insurance, safeguarding small businesses' access to affordable stop-loss insurance, and allowing employer pooling arrangements, including association health plans. Additional recommendations emphasize supporting small businesses with targeted health insurance tax credits, expanding Individual Coverage Health Reimbursement Arrangements (ICHRAs), encouraging more competitive health care and insurance markets, and discouraging hospital consolidation.

NFIB has been advocating for small and independent business owners across the United States since its founding in 1943. The nonprofit, nonpartisan organization remains dedicated to the concerns of small and independent businesses today.