Last reviewed June 2026

Do any states combine the individual and small-group insurance markets?

Short answer: Yes. Massachusetts and Vermont merge their individual and small-group risk pools, which blends pricing across both markets.

In most states the individual and small-group markets are rated separately. Massachusetts and Vermont merge them into a single risk pool, so the experience of individual buyers and small employers is blended when setting rates. This tends to stabilize individual-market pricing while modestly affecting small-group rates. Both states also have other distinctive rules; Vermont uses community rating and Massachusetts uses a modified community rating with limited factors.

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