‘We Need a Way Back In:’ Small Businesses Seek Healthcare Relief

At Fascia’s Chocolates in Waterbury, the secret ingredient to the company’s sweet confections isn’t just the chocolate—it’s the people who make them.

And for owner Carmen Romeo, taking care of those workers is his top priority.

“We’re committed to our employees,” Romeo said.

“Anything we can do to help them, we’re going to do.”

That’s why he welcomed Gov. Ned Lamont, Waterbury Mayor Paul Pernerewski, and CBIA president and CEO Chris DiPentima April 15 to discuss Lamont’s proposal for lowering healthcare costs for small businesses.

‘On Our Own’

“For the last couple years, we’ve all been out on our own,” Romeo said. “We need a way back in.”

Fascia’s Chocolates, a more than 60‑year‑old family business, employs a mix of full‑time, part‑time, and seasonal workers.

The company previously participated in a small group health plan, but like many small businesses that lack the purchasing power of larger employers, premiums quickly became unaffordable for his workforce.

“We kept it because we wanted to have it,” Romeo said. “Then we were dropped. We didn’t have enough employees on the plan.”

That experience forced Fascia’s Chocolates out of the small group market altogether, leaving employees to navigate healthcare options on their own—a reality faced by many small employers across Connecticut.

Broad Challenges

During a news conference inside the facility, Lamont said the challenges facing Fascia’s Chocolates reflect broader, systemic problems in the small business health insurance market.

“They don’t have the purchasing power the big guys do,” Lamont said.

“That’s why most of our small businesses have given up and don’t provide health insurance for their folks.”

“For too many small employers, healthcare has become unaffordable, unpredictable, and unsustainable.”

Gov. Ned Lamont

Rising costs have increasingly squeezed small employers, with limited plan options and unpredictable renewal increases making long‑term planning difficult.

“Costs of healthcare are rising faster than employers or their employees and families can afford, outpacing revenue, outpacing margins, and outpacing wage growth,” DiPentima said.

“For too many small employers, healthcare has become unaffordable, unpredictable, and unsustainable.”

One proposal Lamont is supporting to help employers like Romeo is a tax credit for small businesses that offer individual coverage health reimbursement arrangements, or ICHRAs.

Tax Credit

The governor’s proposal—HB 5041—provides employers with a two-year tax credit of up to $1,000 annually per employee for ICHRAs administered through the state’s health insurance exchange.

“We get you $1,000 credit make to it a little easier for you to administer this for the folks that work here right now,” Lamont said.

“When small businesses can afford benefits, they hire faster, they retain workers longer, and they grow with confidence.”

CBIA’s Chris DiPentima

“Save you a little bit of money and make sure that these folks have the care they need.”

DiPentima said the bill, which is before the legislature’s Finance, Revenue, and Bonding Committee, represents an important step toward addressing a key challenge facing small employers.

“When small businesses can afford benefits, they hire faster, they retain workers longer, and they grow with confidence here in Connecticut,” DiPentima said.

“And that’s not just good for employers—it’s good for our workforce and it’s good for our economy.”

Limited Options

Those pressures came into sharper focus this week following the failure of the legislature’s Appropriations Committee to advance a more far-reaching measure addressing the small business employee healthcare crisis.

That legislation—HB 5378—allows small businesses to band together and pool their risk and purchase health insurance through a trade association or local chamber of commerce.

Without that option, small employers and their employees are left with limited alternatives.

#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 bill earlier won broad, bipartisan support from the Insurance and Real Estate Committee. It was then diverted to the Appropriations Committee.

“Small businesses are between a rock and a hard place,” CBIA policy director Grace Brangwynne told the CBIA BizCast.

“Either offer health insurance with high premiums and pass the cost on to employees or drop healthcare entirely—making it harder to attract, retain, and support their workforce.”

“Our businesses in Connecticut don’t need perfection,” said DiPentima. “They just want progress.”

Healthcare Tools

Lamont described the ICHRA tax credit as a bridge to more permanent solutions.

He has also proposed studying a so‑called Connecticut Option—a state‑designed health plan aimed at helping small businesses and individuals access high‑value care.

“We’re trying to make sure that more and more of our small business also can provide health insurance and little ways that we can make a difference,” Lamont said.

“We just want to provide for our employees.”

Romeo

For Romeo, healthcare has become a constant and complex recalculation—affecting everything from wages to growth plans.

Whether through ICHRAs, association health plans, or a Connecticut Option, he is looking for more tools to support his workforce.

“We just want to provide for our employees,” Romeo said.

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