Connecticut Insurance Department approves double-digit health insurance rate hike

HARTFORD, Conn. (WFSB) - Thousands of people in Connecticut will be paying more for health insurance next year.

The Connecticut Insurance Department has approved a double-digit health insurance rate hike.

More than 220,000 people will see the increase next year. Most of them are on individual health plans. There will be an average rate hike of nearly 17% on those plans, with an 11% average increase on small group policies.

“Something’s not right and unfortunately it feeds the frustrations and anger people have towards the insurers and they can’t provide for their loved ones. Health chance is a critical need and It’s become unaffordable in Connecticut,” said Senator Tony Hwang, (R), Farifield.

Small business owners with fewer than 50 employees will also be affected.

“When you start taking away from us, it makes a difference to the families and people we employ. The better they do, the better the economy does,” said Jason Sears, Owner, Dri-Air Industries.

Jason Sears owns Dri-Air Industries, a manufacturer in East Windsor serving the plastics industry.

Sears has nearly 30 employees. His health insurance costs are rising about 15%.

He wants to look out for his workers, but it’s impact on his bottom line will cause an unfortunate domino effect.

“Our numbers aren’t big. We’re not carrying big profits that other manufacturers do. If you start whittling away 15% here and there, it effects how we pay people. It effects our year end benefits to our people,” Sears said.

The insurance department attributes the increase to “rising health care costs, including the cost of prescription drugs and the increased demand for medical services.”

The major carriers requested a 23% average increase on individual plans, but the insurance department lowered it to just under 17% and from 13% to 11% on small group plans.

The insurance department claims that it is committed to the consumer, but small business owners and lawmakers say that it’s still too high.

Copyright 2025 WFSB. All rights reserved.