Small Employers Offer Less Health Coverage

Small businesses are increasingly struggling to offer health insurance as costs rise, leaving many workers without coverage or facing higher contributions and deductibles. Nationally, only 30% of firms with fewer than 50 employees offer health benefits, and Connecticut has seen one of the steepest declines; small firms also devote a larger share of payroll to coverage than larger companies. Structural factors—including greater reliance on fully insured plans and smaller, less healthy risk pools—help explain why small employers can pay more for comparable coverage. Some business owners remain financially resilient and are using technology to adapt, but inflation and energy costs remain concerns. For individuals without employer coverage, cheaper non-ACA plans may carry significant risks, including weaker protections and less comprehensive benefits.