Pine State News

The National Federation of Independent Business (NFIB) has released a health care policy paper titled "Addressing the Health Insurance Affordability Crisis for Small Businesses." This report highlights significant challenges faced by small businesses in providing health insurance to employees, emphasizing an unsustainable trend.

"Continuously rising health insurance costs are a significant burden for Maine’s small businesses," stated NFIB Maine State Director David Clough. He added that these costs have long been the primary concern for small business owners. Despite attempts to improve the situation, such as Governor Janet Mills' 2020 initiative to merge individual and small group markets, Clough expressed concerns about legislative awareness regarding these struggles. He noted that expanded coverage mandates and restricted cost-sharing protections have exacerbated expenses for small businesses.

Key findings from the report indicate a severe decline in the small-group market, with enrollment dropping from 15 million individuals in 2014 to 8.5 million in 2023—a decrease of 44%. Average premiums for single plans have increased by 120% over two decades, while family plan premiums rose by 129% for firms with fewer than 50 employees. The percentage of small businesses offering health insurance has decreased from nearly 50% in 2000 to only 30% currently. Furthermore, most small businesses are concerned about their ability to continue providing health insurance over the next five years.

The NFIB's legislative recommendations include protecting employer-sponsored insurance, supporting targeted tax credits for small businesses, expanding Individual Coverage Health Reimbursement Arrangements (ICHRAs), improving employer pooling arrangements, expanding access to Health Savings Accounts (HSAs), ensuring access to stop-loss insurance for small businesses, and promoting affordable coverage options. Additional suggestions involve eliminating mandates that increase premium costs and limit competition, promoting price transparency and certainty, discouraging hospital consolidation, and reducing prescription drug prices through innovation.

The full policy paper can be viewed online.

For more than eight decades, NFIB has advocated on behalf of America's small and independent business owners across all states and Washington D.C., maintaining its nonprofit and nonpartisan status since its founding in 1943.