Health Care Regulation Hinders Small Businesses Nationwide

Date: March 28, 2024

The rule limits health care coverage for small employers

WASHINGTON, D.C. (March 28, 2024) – The National Federation of Independent Business (NFIB), the nation’s leading small business advocacy organization, is disappointed in today’s final health care rule on short-term health plans. The rule restricts small businesses’ ability to select health coverage by limiting access to flexible, low-cost, short-term health plans. NFIB previously submitted comments to the administration opposing the rule.

“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. “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. We ask the administration to withdraw this rule.”


For over 40 years, NFIB members have identified the rising cost of health insurance as one of their top concerns. A recent NFIB survey found that 56% of small employers currently offer health insurance to employees, while 44% do not. The data clearly shows that the most significant reason small employers do not offer health insurance is the cost, with 65% of respondents reporting cost as the primary reason.

Ninety-eight percent of small employers are concerned that the cost of providing health insurance to their employees will become unsustainable in the next five to ten years.

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