SENATOR TONY HWANG RESPONDS TO PROPOSED DOUBLE-DIGIT INSURANCE RATE INCREASE REQUESTS; ENCOURAGES PUBLIC PARTICIPATION

The following information was released by the Connecticut State Senate Republicans:

State Senator Tony Hwang (RFairfield), Ranking Republican leader of the Insurance and Real Estate Committee, today addressed the proposed rate increases submitted by individual and small group insurers to the Connecticut Insurance Department (CID). If approved, rates for individual market consumers would increase on average of between 12% and 22%, while small group consumers would face increases on average from 17% to 19%. The small group market currently covers approximately 62,000 people, while the individual market covers more than 156,000 residents. The Connecticut Insurance Department is expected to hold public hearings on these requests in late August, providing residents, employers, healthcare providers, and other stakeholders an opportunity to testify and share the real-world impact of rising healthcare costs.

"Once again, Connecticut families, workers, retirees, and small businesses are being asked to absorb another round of staggering double-digit health insurance premium increases," Hwang said. "For more than a decade, Connecticut residents have faced annual rate hikes that consistently add to our healthcare affordability crisis. The cumulative effect has become unaffordable and unsustainable. These increases are forcing families to make difficult decisions about household budgets, delaying preventive care, reducing access to healthcare services, and placing enormous financial pressure on employers who want to continue providing quality health coverage to their employees."

"Every year I have raised concerns about the trajectory of healthcare costs in Connecticut, and every year the burden on consumers continues to grow. This is a systemic affordability crisis affecting families, seniors, workers, and small businesses across Connecticut. The Connecticut Insurance Department must carefully scrutinize these requests and do everything within its power to protect consumers from further financial hardship," added Hwang.

Senator Hwang encouraged residents, healthcare consumers, employers, and business organizations to participate in the Connecticut Insurance Department's upcoming public hearings and submit testimony regarding the impact of rising premiums.

"These hearings are one of the few opportunities for the public to directly voice how these increases affect their lives, their businesses, and their access to care," Hwang said. "I strongly encourage Connecticut residents to participate, share their experiences, and make their voices heard. Regulators and policymakers need to hear directly from the people struggling to keep up with these relentless cost increases. Public testimony matters and should play an important role in the review process."

These proposed increases come on the heels of the announced closure of the CBIA Health Connections group health insurance program. Launched less than two years ago to expand health insurance options for Connecticut's small businesses and their employees, the program cited rising costs, adverse selection, and challenges in achieving sufficient risk pooling as key factors behind its decision to cease operations.

"The closure of Health Connections is another warning sign that Connecticut's small-group insurance market continues to shrink and become less competitive," said Senator Hwang. "The legislature has made operating in Connecticut's insurance market increasingly costly and difficult. These are also the exact challenges that Association Health Plans, or MEWAs, were designed to address; pooling risk for small business employees to get more competitive, cheaper rates with quality coverage. My Senate Republican colleagues and I have spent years advocating for MEWAs and other market-based solutions, only to be met with resistance from Democrat leadership, which has consistently favored policies that move Connecticut closer to a government-run, single-payer healthcare system. The closure of Health Connections demonstrates why we must continue exploring alternative approaches that expand choice and lower costs."

"The status quo is failing too many Connecticut residents. We owe it to families, workers, retirees, and job creators to pursue practical solutions that make healthcare more affordable and accessible. The Connecticut Insurance Department should fully consider the cumulative impact of more than a decade of premium increases, ensure meaningful public participation in its review process, and provide relief for Connecticut consumers whenever possible."

Those who wish to submit comments can also send them to Tony.Hwang@cga.ct.gov and they will be delivered when addressing CID at the public hearing in August.

This year there is a decrease in the number of rate filings because UnitedHealthcare and ConnectiCare have each notified the CID of planned internal insurer consolidations. Both companies will remain active in Connecticut's health insurance market, and consumers will continue to have coverage options available from these companies for the 2027 plan year. Consumers affected by these changes will receive information from their insurer prior to the renewal explaining any impacts and available coverage options.