Granite State Times

The National Federation of Independent Business (NFIB), a prominent small business advocacy group in New Hampshire, has released a new health care policy paper titled "Addressing the Health Insurance Affordability Crisis for Small Businesses." The report highlights the growing challenges faced by small businesses in providing health insurance to their employees.

According to John Reynolds, NFIB New Hampshire State Director, "Health insurance costs have been the number one concern for small business owners for nearly forty years." He emphasized that offering employee health coverage is essential for attracting and retaining workers but noted that this benefit is increasingly out of reach for many small employers. Reynolds suggested that New Hampshire lawmakers could help by avoiding additional mandates and regulations that increase coverage costs.

The report presents several key findings about the state of the small-group insurance market. Enrollment has significantly decreased from 15 million individuals in 2014 to 8.5 million in 2023, marking a 44% decline. Additionally, average premiums have surged over the past two decades; single plan premiums have risen by 120%, while family plan premiums have increased by 129% for firms with 50 or fewer employees. Currently, only 30% of small businesses offer health insurance, compared to nearly half in 2000. A significant majority—98%—of small businesses express concern about their ability to afford health insurance in the coming years.

The NFIB's report also notes that small businesses pay twice as much for health insurance as larger companies. Specifically, firms earning less than $600,000 annually spend nearly 12% of payroll on health benefits, whereas those making over $2.4 million spend about 7%.

To address these issues, NFIB New Hampshire outlines several healthcare priorities:

- Flexible Coverage: Allowing business owners and employees more freedom to decide what works best without additional regulatory burdens.

- Balance Access and Cost: Supporting legislative measures like SB 256 to ensure timely access to critical medications while managing costs effectively.

- Support New Paths: Encouraging exploration of new methods such as Individual Coverage Health Reimbursement Arrangements (ICHRA) and facilitating Multiple Employer Welfare Arrangements (MEWAs) and Association Health Plans (AHP).

NFIB has been advocating for America's small businesses since its founding in 1943 and remains committed to supporting independent business owners across all states.

For further details on their latest policy paper, visit nfib.com.