Connecticut House Bill HB05348

Connecticut 2021 Regular Session

• Introduced: 1/22/21
• Refer: 1/22/21

Caption

An Act Enabling Small Groups Of Employees To Negotiate Insurance Rates.

Impact

If enacted, HB 5348 would significantly impact state laws related to employee insurance negotiations by enabling smaller groups to act collectively. This shift could introduce a new dynamic in the insurance marketplace; small businesses could leverage their numbers to negotiate better rates, thus reducing costs. This legislative change may also encourage more employees to participate in group insurance plans, which could enhance overall coverage rates across the state and boost the healthcare market's competitiveness.

Summary

House Bill 5348 aims to empower small groups of employees, specifically those with fifty or fewer members, to negotiate their insurance rates. The bill seeks to amend Title 38a of the general statutes to facilitate this negotiation process. The intention behind this legislative move is to enhance the purchasing power of smaller employee groups, potentially leading to more favorable insurance premiums and coverage options, which are traditionally difficult for small entities to achieve in a competitive market dominated by large employers.

Contention

While supporters argue that the bill could lead to cost savings and increased access to health insurance for small employee groups, potential points of contention arise around the effectiveness and fairness of such negotiations. Critics may raise concerns about whether such arrangements will truly benefit employees or if it would simply lead to increased insurance fragmentation. Opponents might also highlight the challenges that small groups may face in negotiating terms that are generally more favorable than those already offered through larger, more established entities.