Buckeye Reporter

The National Federation of Independent Business (NFIB), a prominent advocate for small businesses in Ohio, has published a health care policy paper titled "Addressing the Health Insurance Affordability Crisis for Small Businesses." The report highlights significant challenges faced by small businesses in providing health insurance to their employees.

Chris Ferruso, NFIB Ohio State Director, stated, "Ohio’s small business owners have reported health insurance costs as their number one concern for nearly four decades. Despite being well-intentioned, legislators should resist pursuing health insurance mandates as it ultimately puts pressure on health insurance premiums and forces small employers to decide whether they can afford to provide this employee benefit. Larger businesses are typically exempt from state-imposed health insurance mandates under the federal ERISA law – leaving small businesses with skyrocketing costs. We encourage Ohio policymakers to make health care more affordable for all."

The report reveals several key findings:

- The small-group market is experiencing a decline, with enrollment decreasing from 15 million individuals in 2014 to 8.5 million in 2023.

- Average premiums for small businesses have increased significantly: single plan premiums rose by 120% over two decades, while family plan premiums increased by 129% for firms with 50 or fewer employees.

- Currently, only 30% of small businesses offer health insurance, down from nearly 50% in 2000.

- A substantial majority of small businesses, at 98%, express concern about their ability to continue offering health insurance over the next five years.

- Small businesses incur higher costs for health insurance compared to larger firms; those with less than $600,000 in revenue spend nearly 12% of payroll on health benefits versus 7% for firms earning over $2.4 million.

To address these issues, Ohio lawmakers are considering legislative measures:

- House Bill 133 proposes providing employers with up to 50 employees a tax credit of up to $400 per employee for offering Individual Coverage Healthcare Reimbursement Arrangement (ICHRA).

- Senate Bill 129 suggests allowing employers who purchase group health plans for their employees to receive a refundable tax credit covering part of their paid premiums.

The full policy paper "Addressing the Health Insurance Affordability Crisis for Small Businesses" is available online.