Lawmakers in New Hampshire are currently evaluating proposals that could lead to increased healthcare costs for small businesses. For nearly four decades, members of the National Federation of Independent Business (NFIB) have identified health insurance expenses as a significant challenge in running small enterprises.
One proposal under consideration is Senate Bill 128, which aims to raise taxes on employer-based health insurance to fund juvenile mental health services. This assessment would impact both fully insured and self-funded health plans. The New Hampshire Insurance Department has expressed concerns, warning that this tax will “exert upward pressure on premiums and increase costs for self-funded plans, including the state employee health plan and municipal pooled risk management programs.” The department also cautioned that a substantial rise in premiums might lead consumers to opt for cheaper plans with fewer benefits or avoid purchasing insurance altogether.
The proposed tax seeks to enhance payments to providers of youth behavioral and mental health services. While acknowledging the importance of supporting these services, critics argue that increasing taxes may exacerbate other issues. They suggest lawmakers should find ways to boost reimbursements within existing state funds instead.
In addition to SB 128, several insurance mandate proposals are being debated in the General Court. These mandates would require health plans to cover specific services, treatments, or devices, potentially raising overall insurance costs. One such mandate, Senate Bill 246, proposes requiring employer-sponsored health insurance plans to include maternal mental health screening coverage for all covered individuals.
These mandates could limit the flexibility employers and workers have in designing affordable health plans tailored to their needs. As discussions continue, concerns about escalating healthcare expenses remain at the forefront.
