NORFOLK, Va. — Small business owners are weighing how to keep health coverage affordable as employers face the possibility of higher health insurance costs in 2027.
A new survey from eHealth says some small business employers could see premium increases of 10% or more, while 73% are considering dropping traditional group health insurance altogether.
A serious illness among even one employee can put significant pressure on a small employer's health insurance costs.
“If you have four or five, 10 employees and one of them gets very sick, the cost, even though they get spread out, it can be overwhelming for a small business and it can force them into decisions on whether they actually can offer to keep health insurance or not,” said Brad Close, the National Federation of Independent Business.
A separate survey from consulting firm Marsh shows health benefit costs could rise more than 8% per employee in 2027.
Brad Rocque, Vice President of Enterprise Accounts at eHealth, told WTKR News 3 that sharp increases can force small businesses to reconsider hiring and other operating decisions.
“You get a 20% increase and now you can't hire the salesperson you wanted to hire to grow or you got to address, you know, your operating model. And it's tough. It's really hard.” Rocque said.
Some businesses are exploring choice arrangements, which allow employers to set a defined benefit amount rather than selecting one carrier and set of plans for all employees.
Employees can then choose an individual-market plan that fits their needs, explained Rocque. “It really allows employers to get a much more predictable view of what their costs are going to be. So instead of the employer choosing a carrier and plans for all their employees. This model allows the employer to define a benefit amount.”
Rocque also cautioned businesses against dropping health coverage before reviewing their alternatives, noting that health benefits can play an important role in attracting and retaining employees.
For small business owners who are unsure where to begin, Rocque recommends talking with an insurance broker and researching the available options.
“The broker is their trusted advisor, and their job is to help advise them and, you know, guide them to what’s best for them and their organization.”
This article was prepared with AI assistance for editing and web presentation. All reporting, interviews and newsgathering were conducted by WTKR News 3 staff.
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