# CBIA Launches New Health Coverage Program for Small Businesses

The Connecticut Business and Industry Association (CBIA), recognized as the largest trade group in the state, has taken a significant step towards addressing one of the most pressing challenges faced by small businesses: providing health coverage for employees. On Thursday, CBIA announced a pioneering program designed to create an additional pathway for its members to offer comprehensive health plans, especially in light of the mounting pressures from rising insurance costs.

## Leveraging Scale for Enhanced Offerings

By capitalizing on CBIA’s collective scale, the association’s new program empowers small employers to provide health insurance that includes a wider range of services than they could access individually. Ken Comeau, president of CBIA Service Corp., a subsidiary of the association, emphasized the importance of this initiative, stating that the new plans feature enhancements like patient navigation, price transparency tools, and zero-copay telehealth visits. “Those benefits aren’t typically available for small employers,” Comeau remarked. “We recognize that there’s a pressing need for more solutions, and this program is a direct response to that need.”

## Rising Costs: A Dire Situation for Small Businesses

Over recent years, many small businesses keen on offering competitive benefits to their employees have been confronted with steep insurance rate hikes that have rendered such efforts increasingly untenable. A telling indicator of this disruption was observed in 2022 when ConnectiCare ceased selling small group policies, citing that the expense of providing these plans had grown disproportionately high. After unsuccessful legislative efforts aimed at expanding health coverage options for small businesses, CBIA made the strategic decision to create its own solution to address this critical gap.

## Innovative “Level-Funded” Plans to the Rescue

The new program introduced by CBIA allows small businesses to participate in what are commonly referred to as “level-funded” plans. In this arrangement, employers contribute a monthly payment based on expected health costs, while simultaneously purchasing an additional layer of insurance, known as “stop loss coverage,” to mitigate catastrophic costs. Recent data highlights a growing trend: as of 2023, 38% of covered workers in firms with between three and 200 employees are taking advantage of level-funded plans, according to KFF Health News.

Under the umbrella of the CBIA program, each participating employer’s plan operates independently, featuring its own stop loss policy alongside unique claims and administrative fees. To be eligible for this program, businesses must employ a minimum of 10 participating employees. Participants will benefit from access to care through Cigna’s extensive national provider network, offering peace of mind and greater security.

CBIA officials noted that these plans are especially tailored for businesses with employee counts ranging from 10 to 200, a group that comprises approximately 80% of their diverse member base. Although the specific membership numbers were not disclosed, it’s clear that this program is designed to serve a significant portion of Connecticut’s small businesses.

## The Political Landscape: Challenges Encountered

The announcement of this innovative program coincides with the aftermath of two consecutive legislative attempts aimed at providing small businesses with greater leverage in the health coverage marketplace. In the 2023 legislative session, various business groups—including CBIA—advocated for a bill that would permit well-established trade associations to come together as a single large employer to procure health plans from insurance companies collectively.

Unfortunately, this proposal faced staunch opposition from numerous patient advocacy groups, which raised concerns that such plans could disproportionately benefit healthier individuals. Alarmingly, businesses with employees who become sick or injured might experience significant hikes in their insurance costs. This tension culminated in an hours-long filibuster led by Sen. Matt Lesser, D-Middletown, who rigorously questioned the bill’s proponents during committee discussions.

In response to concerns raised by committee members, efforts were made to revise the bill in collaboration with various agencies, including the Office of the Healthcare Advocate, to incorporate additional protections for individuals with pre-existing conditions and those facing illness or injury. Yet, despite intensive efforts, the proposed legislation ultimately failed.

## A Shift in Strategy: Innovation Over Legislation

Representative Kerry Wood, one of the bill’s supporters, reflected on the current climate by noting the lack of legislative support for similar proposals in the upcoming session. She expressed her appreciation for CBIA’s proactive approach in forging a solution. “It’s encouraging to witness such innovation in response to pressing needs,” Wood observed. “It’s perplexing that the legislature seems out of touch with what small business entities are pleading for.”

According to Chris DiPentima, president and CEO of CBIA, the political environment played a pivotal role in the failure of the previous bill, with some factions perceiving the proposed changes as contrary to the values of the Affordable Care Act and any potential future public options. He stated, “What started as a constructive policy concern devolved into a political issue that overshadowed the real needs of businesses.”

## The Path Forward: Utilizing AI legalese decoder

In light of the complexity surrounding insurance policies, legislation, and business needs, resources like the **AI legalese decoder** can offer invaluable assistance to small businesses navigating these challenging waters. By simplifying and clarifying the intricacies of insurance terms and legal jargon, the AI legalese decoder empowers employers to make informed decisions regarding their health coverage options.

This resource can help small businesses not only comprehend the available plans but also assess the implications of various policies on their workforce. Understanding these details is crucial for making strategic choices that align with both business goals and employee needs.

In summary, while the CBIA program marks a significant advancement for small businesses in Connecticut, leveraging tools like AI legalese decoder ensures that business owners can navigate the landscape with confidence and clarity, providing their employees with the health benefits they need and deserve.