Senator Tony Hwang Votes to Move Insurance Affordability Options Forward

HARTFORD—State Senator Tony Hwang (R—Fairfield), Ranking Member of the Insurance and Real Estate Committee, voted today in support of HB 5378, legislation designed to expand affordable health insurance options for individuals and employees of small businesses through Association Health Plans, technically known as Multiple Employer Welfare Arrangements (MEWAs).

HB 5378 mirrors legislation proposed by Senate Republicans to establish Association Health Plans, allowing individuals and small employers to pool their risk and band together to purchase more affordable, high-quality health insurance coverage. By creating larger risk pools and increasing purchasing power, the proposal aims to help smaller employers access more competitive pricing and greater stability in the insurance market while maintaining strong protections against discrimination based on preexisting conditions.

“This bill is about an ongoing effort toward healthcare insurance affordability,” said Senator Hwang. “For the past four years, this bipartisan committee leadership has been working on policies related to MEWAs. The substitute language before us addresses two critical concerns: preventing adverse selection and ensuring that the consumer protections established under the Affordable Care Act remain protected and enforced.

“We have heard extensive feedback from stakeholders throughout this process, and this legislation reinforces the principle that discrimination based on preexisting conditions must remain a thing of the past,” Hwang added. “We also addressed insolvency concerns that have emerged in other states by working closely with our esteemed Insurance Department to ensure that any entities pursuing MEWAs are financially sound and properly regulated.”

Supporters of the bill note that Association Health Plans can also improve administrative efficiency. Centralized plan administration reduces redundant overhead costs while allowing associations to negotiate directly with insurers on behalf of their members, giving small employers greater leverage in the insurance marketplace.

The legislation also allows greater flexibility in plan design, enabling associations to tailor benefits to the needs of their industries and members while encouraging employers to take a more active role in managing healthcare costs and coverage options.

In addition, Association Health Plans operating as Multiple Employer Welfare Arrangements (MEWAs) may reduce certain embedded costs often included in fully insured products. By avoiding expenses such as premium taxes, guaranty pool assessments, and certain public health fees, these arrangements may offer more affordable coverage options for participating employers and individuals.

Lastly, the bill contains a feasibility study of the Governor’s Connecticut Option proposal which utilizes the Partnership Plan, Reinsurance, and other avenues to generate a single-payer system aimed at lowering costs. The inclusion of this language in the bill highlights the committee’s willingness to explore every idea possible as it relates to lowering health insurance costs for Connecticut residents.