Survey finds health costs continue to climb for small businesses

The National Federal of Independent Business released a new survey this week showing that 64 percent of small businesses were paying more for employee health insurance premiums in 2013 (Source: “Small businesses see higher costs for health care,” Mansfield News Journal, Oct. 31, 2013).

“That’s what we’ve seen really across the board, not only in the small-group market, but with clients in general,” said Stephen Ligus, a client executive with the Toledo-headquartered insurance brokerage Hylant. “That cost is continuing to rise despite health care reform.”

According to the nationwide survey of 921 businesses with less than 100 employees:

• Only 6 percent reported their premium costs went down this year.
• The typical cost increase was 6 percent and the typical employer paid about $42,000 per year in health insurance premiums.
• Thirteen percent planned to cut employee hours next year, although only about half of that can be attributed to the health care law.
• The number of employers offering plans fell slightly, though the survey points to more extending coverage in 2014.

The NFIB has been a longtime critic of the ACA and used the study to call for business-friendly modifications, or full-on repeal, for key provisions in the law.