Healthcare costs are skyrocketing. Workers’ compensation hikes loom. And small business owners desperately need more affordable access to energy. Will a new year bring new problems for the Commonwealth’s small businesses?
It may be a new year, but Massachusetts small business owners are struggling with the same old headaches of running a small business in the Commonwealth.
In addition to the $1 state minimum wage increase to $10 an hour that took effect on Jan. 1, small business owners in the Commonwealth are facing double-digit healthcare premium increases, potential workers’ compensation hike of 6.4 percent and increasing energy costs.
1. Double-Digit healthcare premium increases
In August, news broke that health insurers would hike rates more than 6 percent for small businesses, meaning a more than double increase from the beginning of 2015 alone for small business owners with 50 or fewer employees.
2. Workers’ compensation hikes
On top of rising healthcare premiums, small business owners may now face a 6.4 percent hike in workers comp rates, according to a Workers’ Compensation Rating and Inspection Bureau of Massachusetts Workers’ Compensation Insurance Rate filing issued on Jan. 6.
“The WCRIB is requesting a statewide average rate increase of 6.4 percent and an effective date of July 1, 2016,” according to the filing.
3. Increasing energy costs
As lawmakers discuss solar bills and energy subsidies, small business owners grimace at the prospect of underwriting with millions of their tax dollars. The Commonwealth’s energy subsidies add to already-increasing healthcare costs and hurt competitiveness for the state’s economy. What small business owners need instead of subsidies is increased natural gas capacity.
