Grand Canyon Times

The National Federation of Independent Business (NFIB) has released a survey highlighting the challenges small businesses face in providing health insurance to employees. The survey indicates that affordability remains a significant issue, with many small business owners struggling to manage the costs associated with employer-sponsored health insurance.

Holly Wade, Executive Director of NFIB’s Research Center, noted, “Health insurance has been a continuous challenge for small business owners. The cost of health insurance is by far the biggest challenge for employers who offer health insurance and for those who do not offer it.”

Chad Heinrich, NFIB State Director, added, “Escalating prices are just one of the economic headwinds our small business owners face. Nearly half of the employers who offer health insurance have suffered a loss or taken less in profit in the past five years.”

The survey reveals that 56% of small employers currently offer health insurance to their employees. However, 65% of those who do not provide this benefit cite high costs as the primary reason. Among firms with more than 30 employees, 88% reported cost as a barrier compared to smaller firms.

A significant portion of employers offering health insurance reported using agents or brokers for purchasing or renewing plans. Eighty-eight percent follow this practice, with over half having used the same broker for more than five years.

Additionally, almost three-quarters (72%) of small employers were unfamiliar with Individual Coverage Health Reimbursement Arrangements (ICHRA), and discussions about this option were limited among brokers.

Concerns about future sustainability are prevalent among those offering health benefits. Almost all respondents expressed worry about unsustainable costs over the next decade.

In terms of personal coverage, most small business owners have personal health insurance through various sources including their businesses and government programs like Medicare and Medicaid.

The survey underscores ongoing issues faced by small businesses regarding health care costs and highlights potential areas for policy intervention and support.