Hartford Business Journal

HARTFORDBUSINESS.COM | JANUARY 26, 2026 19 FOCUS | HE ALTH CARE a year before you even get insur- ance coverage, I think that's a crazy number," she said. "If we're looking for ways to save costs for people on Affordable Care Act plans, here's a benefit right here that we can do." Mandating a review Wood and Rep. Cara Pavalock- D'Amato (R-Bristol), ranking member of the Insurance and Real Estate Committee, said lawmakers have peri- odically tried to require the state Insurance Department to analyze the impact of health benefit mandates. Last year's effort — House Bill 6895 — cleared the insurance committee on a 12-1 bipartisan vote but stalled after being referred to the Appropriations Committee. Pavalock-D'Amato said the legisla- ture has not approved a comprehen- sive mandate review since 2014. Last year's proposal would have required an analysis of how each new mandate would affect premium costs before lawmakers vote on it. Pavalock- D'Amato compared the concept to a fiscal note, which estimates how legis- lation would affect the state budget. "I think people would think twice if they had that actual number," she said. Wood said she supports that approach, but also wants broader scrutiny of existing mandates. "Maybe we should review all the state benefits and see what's working and what's not," she said. Wood said the committee asked the Insurance Department last year to analyze the cost impacts of existing mandates, a process she said is ongoing. The Insurance Department confirmed it received the commit- tee's request and said it has received several responses to a request for proposals to conduct the review. Cost pressures Any effort to rein in health insurance costs would likely be welcomed by small businesses and their employees. In September, the state Insurance Department approved an average rate increase of 16.8% for fully insured individual health plans and 11% for small-group policies. Combined, those markets cover about 224,000 Connecticut residents. The small-group market has also grown more concentrated in recent years, with Aetna, Cigna/Oscar Health, ConnectiCare and nonprofit Harvard Pilgrim HealthCare all exiting since 2022. Only two carriers remain: Anthem Blue Cross and Blue Shield and Oxford Health Plans. The premium hikes come as enhanced federal subsidies under the Affordable Care Act have expired, raising concerns that many indi- viduals and families may no longer be able to afford coverage. State officials estimate Connecticut could lose about $295 million in enhanced federal tax credits that help tens of thousands of residents pay health insurance premiums. Gov. Ned Lamont said in December that the state plans to spend $70 million from its rainy day fund to partially offset the loss of federal subsidies. Pressure is also building in the employer market. A December anal- ysis by the State Health Access Data Assistance Center at the University of Minnesota found that average annual premiums for employer-sponsored family coverage nationwide rose to $24,540 last year, an increase of more than $600 from the year before. How much Connecticut's mandate- heavy approach contributes to premium costs remains an open ques- tion — one raised not only by legisla- tors but also by business groups. "One of the things that CBIA has been lobbying on in the past three years is health benefit mandate reviews," said Grace Brangwynne, CBIA's policy director for health care, insurance and housing issues. Brangwynne said CBIA supports adding fiscal-note-style analyses to mandate proposals, including cost-benefit estimates. Assessments In addition to mandates, Wood said another driver of rising premiums is the assessments the state charges insurers. The state raises more than $100 million annually through these levies and fees, which help fund the state Insurance Department and several other state programs, including public health initiatives. "Just a few years ago, we did a working group on the assessments," Wood said. "It's over $100 million in assessments, which is thousands and thousands of dollars a year on everyone's premiums." If you add the cost of assessments to the cost of mandated benefits, Wood said, "we have already priced people out of these plans." Wood said the working group devel- oped recommendations on "what should and should not be assessed," but received little support. She said legislation intended to implement the working group's recom- mendations died in committee last year. Asked what she expects lawmakers to accomplish during the short legislative session that begins Feb. 4, Wood said the goal is to avoid adding costs. "I get like 40 (proposed) new mandates every year," she said. "So if we can get through the session without adding additional pain, that would be a win." A SMALL BUSINESS GIVEAWAY 2026 One Connecticut small business will win a full page ad in the Small Business Issue of HBJ on May 4 and 12 months of free Cash Management Services from TSB. The winner will be notified around April 1st. PRESENTED BY SCAN HERE TO NOMINATE! NOMINATIONS OPEN | JANUARY 12 - MARCH 16 Grace Brangwynne Cara Pavalock- D'Amato

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