Connecticut’s small group health insurance market is experiencing a severe decline, with several insurers, including Aetna and Cigna, exiting the market. This situation has left the market in a so-called “death spiral,” causing concern among state legislators and industry leaders.
Legislative Response
State legislators and industry stakeholders gathered to discuss the market’s future, focusing on the unique challenges it faces. The Insurance and Real Estate Committee organized the event to explore potential solutions and share information.
Contributing Factors
J.P. Wieske of the Health Benefits Institute highlighted national and state-specific issues impacting the small group market. Factors include high medical costs, regulatory requirements from the Affordable Care Act, and the shrinking number of insurers willing to participate.
Potential Solutions
Senator Matt Lesser proposed several approaches to stabilize the market, such as merging the small group and individual markets, offering state-based subsidies, and improving consumer protections. These measures aim to address the affordability and sustainability of small group health insurance in Connecticut.