The National Federation of Independent Business (NFIB), Texas’s leading small business advocacy organization, has released a health are policy paper that reveals a dire prognosis for the small-group insurance market as employer-provided health coverage is becoming unsustainable for millions of small businesses and their employees.

The report, Addressing the Health Insurance Affordability Crisis for Small Businesses, underscores the urgency for Texas to pass SB 818 and HB 1906. The bills would set up a process for estimating how proposed legislation could impact the cost of private health coverage for employers and families, filling a critical gap in Texas’ approach to benefit mandates.

“Health insurance costs have been the number one concern for small business owners for nearly 40 years,” said NFIB State Director Jeff Burdett. “Our small employers need real solutions to access affordable health policies.”

Key findings from the national report:
■ The small-group market is in freefall, with enrollment plummeting from 15 million individuals in 2014 to just 8.5 million in 2023, a 44% drop.
■ Average premiums for small businesses have skyrocketed: Average single plan premiums have gone up 120% in the last two decades, while average family plan premiums have increased by 129% for firms with 50 or fewer employees.
■ Only 30% of small businesses still offer health insurance, down from nearly 50% in 2000.
■ Ninety-eight percent of small businesses say they are concerned about whether they will be able to afford to continue offering health insurance in the next five years.
■ Small businesses pay twice as much for health insurance as large businesses, firms with less than $600,000 in revenue spend nearly 12% of payroll on health benefits, compared to 7% for firms with over $2.4 million in revenue.

“We will continue working with lawmakers on pro-small business health insurance legislation this session to immediately help Main Street businesses and their employees,” Burdett said. Click here to read the full report.