By Trish Pearson
Insure Your Future
Trish Pearson
Connecticut is known as the insurance capital of the US. It gained that identity because several large insurance companies are headquartered here – Aetna, The Hartford, Cigna and Travelers all call Hartford home.
However, Connecticut also has some of the most generous insurance regulations that protect consumers.
The Affordable Care Act prohibits discrimination based on health conditions for health insurance, but not all types of health insurance. Connecticut takes it one step further and prohibits discrimination by insurance companies for any kind of health insurance, including Medicare Supplement plans. This year Gov. Ned Lamont also replaced a portion of the premium tax credits for individual insurance plans through the health exchange and is supporting a small group program known as an individual coverage health reimbursement arrangement.
Health insurance companies are regulated by each state. Connecticut is one of four states that prohibits discrimination for Medicare Supplement plans based on age or health conditions. The other three are Massachusetts, New York and Vermont. Medicare Supplement plans are portable, which means that you can keep your current policy if you move to another state. This is not true of Medicare Advantage plans or prescription drug plans. You must be enrolled in a plan that is based on the county in which you live. Medicare Advantage and prescription drug plans are not subject to health conditions for approval. However, the benefits and premiums may be slightly different from state to state.
Many people who get insurance through the health exchange (under 65) lost eligibility for an advanced premium tax credit in 2026, or it was reduced due to the lack of an extension to the Affordable Care Act income eligibility guidelines. The governor allocated funds to assist people in this situation, replacing a portion of the lost benefit known as temporary premium assistance.
As a result, people who did not renew are now eligible for some assistance with their premiums and have a special enrollment period through June 2026. The special enrollment period includes people who did not apply during open enrollment or people who chose a less expensive plan because of their lower advanced premium tax credits. They can switch to a different plan if they are now eligible for temporary premium assistance. If any of these situations apply to you, contact Access Health CT or a certified broker who can assist with the renewal or a new application.
There is also good news for small business owners who wish to provide health benefits for their employees, but haven’t be of the cost of traditional plans. Connecticut’s health exchange is now offering plan designs that allow employees to apply for an individual plan of their choice and for the employer to contribute to the premiums at an amount they choose. Traditional health insurance plans require a minimum 50 percent employer contribution to an employee’s premium.
The individual coverage health reimbursement arrangement program was introduced last July and got off to a rocky start, but many of the processing glitches have been resolved. For businesses with fewer than 20 employees this plan could be a good option for both the owner and the employee.
Trish Pearson is a licensed independent insurance agent and certified long term care specialist. Contact her at 203-640-5969 or trishpearson281@gmail.com.