Healthcare: Small Businesses Still Waiting for Relief

State lawmakers this session largely overlooked the healthcare affordability crisis affecting hundreds of thousands of Connecticut small business employees.

A transformational, bipartisan bill that offered access to quality, affordable healthcare plans for small business employees was blocked in the Appropriations Committee after earlier winning approval in the Insurance and Real Estate Committee.

HB 5378 allowed small businesses to purchase health insurance through a trade association or local chamber of commerce—essentially putting them on a level footing with large employers. 

However, it fell victim to a campaign of misinformation after some lawmakers put politics before policy.

The state budget adjustments did include a new small business health coverage credit of up to $1,000 per covered employee for employers using Individual Coverage Health Reimbursement Arrangements.

While that falls far short of addressing the healthcare crisis, it will provide some assistance to a narrow cross-section of small businesses.

CT Option Study 

The provision allows employers to provide a monthly monetary contribution to employees who can then use those funds to purchase an individual plan through the state-run healthcare exchange.  

In her testimony before the Human Services Committee on this proposal, CBIA’s Grace Brangwynne expressed concerns that it doesn’t allow employers to truly bend the cost curve.  

“While this approach gives employers additional flexibility, it shifts the responsibility of finding and managing health coverage to employees and limits an employer’s ability to manage healthcare costs at a broader level,” she said.  

#Smallbiz have been asking for help for years—Unfortunately, some Appropriations Committee members put politics in front of good policy—penalizing employers rather than helping them and their employees navigate Connecticut’s growing affordability crisis. https://t.co/LL5Aan0ocO

— Chris DiPentima (@ChrisDipentima) April 14, 2026

The budget package also requires the Office of Policy and Management to study the feasibility of establishing the CT Option program and requires legislative approval for such program.

As proposed by Gov. Ned Lamont, the CT Option represents a preferred provider network with some subsidized costs.  

The final version is a significant departure from the original proposal featured in SB 3, which required OPM to create and implement the plan without legislative oversight.  

“For many small businesses already struggling with rapidly rising premiums, additional cost‑shifting would make coverage even less affordable and could drive further premium increases,” Brangwynne said.

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For more information, contact CBIA’s Grace Brangwynne (860.244.1163).