Press Releases

Health Insurance Costs Continue To Rise For Small Businesses

NFIB Study Shows ObamaCare Not Living Up To Promise Of Lower Costs

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Washington D.C., October 31, 2013 | DJ Jordan, Joel Hannahs (202-225-5821) | comments
Today, an extensive new study shows that health insurance costs for small businesses continue to rise, despite claims from the Obama administration that the health law would decrease costs for small firms. The NFIB report shows that 64 percent of small companies’ health insurance costs per employee are higher this year than the previous year.

“This NFIB survey is further proof that the health care law is harming small business growth, and the claim of lower costs is another in a long line of broken promises from the administration regarding this law,” said Chairman Graves. “Despite the promise that ‘if you like your insurance, you can keep it,’ millions of Americans are getting insurance cancellation letters due to the health law. And small businesses were told they could begin enrollment in the Small Business Health Options Program soon, and now we know that the program isn’t ready. The list goes on and on.”

According to the study, health insurance premium costs incurred by small businesses average a total of $6,721 a month, which is $80,652 a year, and the median is $3,500 a month, or $42,000 a year. This increased cost is forcing small companies to lose profit or forgo investments in their company.  The survey also shows small business are “uncertain on many aspects of the insurance they purchase, their plans for adjusting to the ACA, and precisely how the ACA will affect them and their business.”

This study is consistent with what small businesses have been telling the Committee in hearings and through its interactive website, Small Biz Open Mic. For example, Sandhill Scientific, Inc., of Highlands Ranch, CO, was told “…to expect our health care premiums to jump 50% next year.”

NFIB surveyed 921 small business owners and operators from around the country for the study, and it is the first report in a planned series of three annual reports.  The succeeding reports are to be based on interviews of the same small employers in order to measure the actual changes associated with introduction of the health care law, rather than the net changes that are measured using independent annual samples.


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