According to a poll by the Small Business Association of Michigan, or SBAM, 76% of small business owners say the rising cost of health care is affecting their ability to hire more employees and expand their business, with 51% saying they’ve had to reduce or eliminate benefits altogether.
Michelle Beebe is Chief Revenue Officer with SBAM.
“I just talked with a member this morning, ironically, that they had moved to a $10,000 deductible and they still are paying $1,200 a month per employee, and that’s the out-of-pocket to their employees.”
Beebe says small business owners are either significantly altering benefit levels or increasing employee contribution, with 70% saying the cost of health care is a significant barrier to offering coverage as an employee benefit.
“Hospitalization costs specifically is taking probably the largest chunk along with prescription costs of a premium dollar.”
Beebe recommends small business owners have honest conversations with their employees about benefit costs, then consider what employees want most from those benefits.
“Transparency through the market and education and connecting with their insurance agent to know what options are available and they don’t necessarily have to just take the increase, that there’s options out there.”
