New Tax Credit Available For Small Businesses Offering Health Insurance

Connecticut small businesses can now access a state tax credit to help offer health insurance to their employees through a law passed earlier this year, Gov. Ned Lamont said Tuesday.

Eligible businesses, which include those with 50 or fewer employees, can receive a tax credit of up to $1,000 per employee per year when they offer an Individual Coverage Health Reimbursement Arrangement (ICHRA) through Access Health CT, the state's official health insurance marketplace, using the BusinessPlus platform. The credit is available for the first two consecutive years an employer offers an ICHRA.

"Through this tax credit, we can encourage more small businesses to offer health coverage to their employees, keeping more people in Connecticut insured while also offsetting their premiums," Lamont said. "This approach enables workers to choose the plan that best fits their needs, lower their costs, and create more predictability for small businesses. Creating this initiative is another way that we are working to move Connecticut forward on health care affordability in a way that is realistic, responsible, and focused on the everyday experiences of individuals and families who are trying to get coverage and stay covered."

State Sen. Jeff Gordon, R-Woodstock, who is a physician, noted that state ratepayers were facing double-digit increases this year. He said any help for addressing rate hikes was welcome. He also touted the Connecticut Association of Health Plans as a potential source of healthcare savings.

"We must continue to work on health insurance affordability issues, and the commonsense Association Health Plans — which have had significant bipartisan support — would be a great place to start," he said.

Access Health CT CEO James Michel said the marketplace's mission was to reduce the uninsured rate in Connecticut, "which also means increasing access to health insurance and financial help."

An ICHRA is an allowance-based health benefit that gives employers a flexible and cost-effective way to contribute toward their employees' health insurance.

How it works:

* Employers set a monthly contribution amount per employee.

* Eligible employees can then use those funds toward an individual health insurance plan available through Access Health CT.

Revenue Services Commissioner Mark Boughton said he was proud of the state's partnership with Access Health CT.

"Our collaboration with Access Health CT reflects a shared commitment to working together, leveraging our collective expertise and resources and finding solutions to achieve the best possible results for the people we serve," he said.

Access Health CT is the only place business owners can access the tax credit. The form for small businesses to apply for the ICHRA tax credit can be found on the Connecticut Department of Revenue Services website in the Pass-Through Entity Tax Forms section.

Employers wishing to learn more about the tax credit should visit AccessHealthCT.com/BusinessPlus. They can also call Access Health CT's Business Plus office at 1-860-241-8445 for assistance. Customers who are deaf or hearing impaired may use TTY at 1-855-789-2428 or call with a relay operator.

Customers can search the Certified Broker directory on AccessHealthCT.com to find one in their area.

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