Small Business Employee Healthcare Bill Diverted

Bipartisan legislation addressing the growing crisis in the fully-insured small group market was this week rerouted to the Appropriations Committee.

HB 5378 earlier won broad support from the Insurance and Real Estate Committee.  

The bill allows small businesses to pool their risk and purchase health insurance through a sponsoring association such as a trade association or a local chamber of commerce.  

The last section of the bill requires OPM to study the feasibility of the Connecticut Option with the goal of reducing health insurance premiums.

This proposal could cost the state a million dollars to implement.  

Coalition

During the public hearing for association health plans, a coalition of small businesses, trade associations, and chambers of commerce expressed strong support for the bill.  

Bills that are referred to another committee must be acted upon within three session days or seven calendar days.

If the referring committee takes no action on the bill, it will not advance. 

“This will be a huge sigh of relief.”

Small business employees deserve quality, affordable healthcare. Association Health Plans help make it possible. #smallbusiness #healthcare #reimagineCT pic.twitter.com/depaM4IPBg

— CBIA (@CBIANews) March 5, 2026

The legislature is also considering the Connecticut Option as outlined in SB 3.

As written, the proposal requires the Office of Policy and Management to establish a working group that would create an implementable model for a Connecticut Option with subsidies for enrollees.  

The Connecticut Option would be funded by a $200 million transfer into the Connecticut Affordable Health Care Trust Fund, but could also receive additional state funds.  

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