Press Release

Opposition to Proposed Health Insurance Tax Grows Across Connecticut’s Business Community


Contact: Bernard Kavaler
(860) 729-3021

New Tax Would Raise Costs for Working-Class Families

Hartford, CT – As the Connecticut General Assembly’s Finance, Revenue and Bonding Committee is poised to vote today on a proposed Health Insurance Tax (HIT) that would significantly raise health insurance costs for any worker or family who gets their health coverage through a Connecticut-based business or the fully insured marketplace, a growing coalition of leading business organizations are stepping up their opposition to the new tax.

Nearly 25 leading employer organizations, representing thousands of Connecticut employers who employ tens of thousands of state residents, are urging legislators to halt a proposed new health insurance tax as they consider the state budget and tax package during the waning weeks of the legislative session. The full letter can be read here.

Despite the fact that Connecticut currently faces a budget surplus, and an additional $10 billion is coming to the state in federal stimulus aid, the proposed tax would increase health insurance costs for local workers and their families. “Local businesses and their workers are the backbone of Connecticut’s economy. They create vibrancy, culture, and economic activity in every community across our state. Adding new health insurance costs will only add to their financial pressures, leading to less coverage, fewer jobs, and limited resources for investment,” the coalition of state business leaders pointed out.

The growing coalition in Connecticut now includes:

  • Connecticut Business & Industry Association
  • National Federation of Independent Business, Connecticut Chapter
  • Credit Union League of Connecticut
  • Connecticut Retail Merchants Association
  • Connecticut Food Association
  • Connecticut Restaurant Association
  • Connecticut Construction Industry Association
  • Greater New Haven Chamber of Commerce
  • MetroHartford Alliance
  • Greater New Britain Chamber of Commerce
  • Northwest Connecticut Chamber of Commerce
  • Home Care Association of America, Connecticut
  • Waterbury Regional Chamber of Commerce
  • Connecticut Veterinary Medical Association
  • Connecticut Farm Bureau
  • American Rental Association
  • Independent Electrical Contractors of New England
  • Connecticut Association of Community Pharmacies
  • Connecticut Benefit Brokers
  • Connecticut Lodging Association
  • New England Tire & Service Association
  • Lumber Dealers Association of Connecticut
  • Greater Danbury Chamber of Commerce
  • Connecticut Bus Association, Inc.

“Now is the worst possible time to increase costs on hard-working residents who cannot afford to have their health coverage jeopardized as we work to recover from this pandemic,” the coalition stressed. “Thousands of local businesses in Connecticut are proud to provide health care for their employees. Yet, this proposed tax has the potential to force local business owners into unwanted and difficult decisions that will impact their ability to fully recover and re-open.”

Earlier this month, local business leaders called on Governor Lamont and the General Assembly to acknowledge the negative affects the proposed tax would have on working-class families in the midst of a public health and economic crisis.

“Our local businesses, their workers, and families need the support of Connecticut’s leaders in Hartford, not burdensome new taxes,” the coalition pointed out.

The broad coalition of leading business organizations urged lawmakers to drop the new health insurance tax before it comes up for a vote in the House or Senate – or to vote NO if it does.

The 2021 legislative session adjourns on June 9.



The Stop The HIT Coalition represents the nation’s small business owners, their employees and the self-employed who worked to repeal the Health Insurance Tax. Since the Coalition’s formation in 2011, it has grown to include more than 35 national organizations, representing millions of small business owners across the country. For more information, please visit