Small Businesses & Employers Bracing for Increased Health Insurance Premiums
By Consumers for Quality Care, on September 28, 2022
Small businesses and other employers may see their health insurance premiums increase as companies brace for continued rising inflation costs, according to The Wall Street Journal.
An analysis of 72 health insurance companies from 13 states conducted by the Kaiser Family Foundation found a median monthly proposed premium increase of 10 percent, with some insurers pursuing rate increases of up to 20 percent. The large range of premium increases is a response to overall increased costs relating to staffing, labor, and supplies.
Debbie Ashford, Chief Actuary for Health Solutions at the North American unit of Aon PLC, stated, “It’s labor, but also supplies. The cost of everything is going up.”
Small employers are likely to be impacted the most by these potential premium increases due to differing laws and regulations surrounding small businesses versus large corporations. Executive Vice President for health policy at Kaiser Family Foundation, Larry Levitt, said, “Small businesses will get hit the worst.”
While employers will see these increased rates, those costs may not necessarily be passed to employees and consumers. This is because the recently passed Inflation Reduction Act extended premium subsidies for Affordable Care Act health care plans through 2025.
CQC remains concerned about how increasing premiums will impact consumers and urges lawmakers to remain vigilant to ensure consumers do not ultimately bear the burden of this cost.