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Bill

HB 5277

AN ACT ALLOWING SPONSORING ASSOCIATIONS TO CREATE MULTIPLE EMPLOYER WELFARE ARRANGEMENTS.

2025 Regular Session Introduced by Lezlye Zupkus

Allows Connecticut employer associations to create self-insured health plans pooling multiple companies' workers, potentially lowering small business costs but raising insolvency and market fragmentation risks.

REF. TO JOINT COMM. ON Insurance and Real Estate
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Bill Summary · HB 5277

Legislative bill overview

HB 5277 permits sponsoring associations in Connecticut to establish Multiple Employer Welfare Arrangements (MEWAs), which are self-insured health benefit plans that pool employees from multiple small or mid-sized employers. This would expand the mechanisms available for employers to provide health insurance coverage to their workforce outside traditional group insurance markets.

Why is this important

MEWAs can potentially lower healthcare costs for small businesses by spreading risk across a larger employee pool and reducing administrative overhead. However, the expansion of MEWAs also increases regulatory complexity and creates consumer protection questions, as these arrangements historically operate with less stringent oversight than conventional insurers.

Potential points of contention

  • Consumer protection and solvency: MEWAs have historically faced higher failure rates than traditional insurers, raising concerns about whether employees could lose coverage if arrangements become insolvent
  • Regulatory clarity: The bill's scope regarding which associations can sponsor MEWAs and what oversight mechanisms apply remains undefined, creating potential gaps in state insurance department authority
  • Insurance market impact: Allowing healthier employee groups to self-insure through MEWAs could increase costs for remaining employees in the traditional insurance market, potentially destabilizing coverage for higher-risk pools

Compiled from official sources — confirm details with the bill’s official record.

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