In early June, the New Hampshire Senate included in its state budget proposal several pieces of legislation that would have increased the cost of health insurance for small businesses and their employees.

Included in the sprawling budget bill were a new tax on health insurance to fund a state-created mental health program and several expensive coverage mandates.

Thanks to NFIB members taking action and making their voices heard and our partnership with a broad coalition concerned with higher healthcare costs, the new tax and expensive mandates were REMOVED from the final budget.

In an op-ed published by NH Journal before the budget agreement was finalized, NFIB New Hampshire State Director John Reynolds explained why the new tax and coverage mandates would hurt Main Street businesses.

From the op-ed:

For small employers, health insurance is a crucial benefit for recruiting and retaining workers. Due to structural disadvantages in how health insurance markets are regulated at the state and federal levels, small businesses that purchase employee coverage in the small group market generally pay more for coverage than larger competitors who can self-insure.

In New Hampshire, rising healthcare costs have taken a toll on small businesses. Between 2018 and 2023, small group premiums increased by 20 percent, and enrollment declined by 16 percent. Large group enrollment has steadily declined over the same period, largely due to rising premiums.

Unfortunately, the problem will get worse if a new health insurance tax becomes law this year. A provision included in the New Hampshire Senate’s budget proposal would tax private health coverage to fund youth mental health services under a state government program.

There is no disputing the type of care at issue is a serious matter; the question is how to pay for it and who should provide it.

This uncapped tax would add to the already heavy financial burden for small employers, would increase premiums for workers and their families, and is completely misplaced.

Read the full op-ed here: REYNOLDS: Higher Health Insurance Taxes Will Hurt Small Businesses – NH Journal