New Health Care Rule Restricts Coverage Choices

Date: April 03, 2024

A March 28 final health insurance rule limits access to flexible, low-cost, short-term health plans for small business owners and their employees

On March 28, the Administration announced a new rule that will limit access to flexible, low-cost, short-term health plans for small businesses and restrict their ability to select health coverage. NFIB previously submitted comments opposing the rule and expressing support for more choice and control over coverage decisions.

“NFIB expresses disappointment with the Biden Administration’s final rule that limits health care coverage choices for small employers and their employees,” said Jeff Brabant, NFIB Vice President of Federal Government Relations, in a recent statement. “This rule is a step in the wrong direction for small business owners seeking more affordable, flexible, and predictable options for their employees and themselves. Small businesses continue to face numerous challenges, and this rule adds another layer of complexity and red tape.”

According to NFIB’s latest health insurance survey, 94% of small business owners find managing the cost of employer-sponsored health insurance challenging to some degree. As a result of price increases, nearly half (49%) report taking a lower profit or suffering a loss to afford health insurance premiums. Little optimism for relief exists, as 98% express concern they will be unable to provide health care benefits within the next five years.

The small business community urges Congress to act and consider legislation, such as the CHOICE Arrangement Act, that will increase coverage choices, reduce costs, and expand access to healthcare.


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