The National Federation of Independent Business (NFIB) has expressed its support for recent actions by the Massachusetts Division of Insurance concerning health insurance affordability. The organization highlighted the persistent issue of rising health insurance costs that have been affecting small businesses in the state.
“Health insurance costs have consistently risen at unsustainable rates for Massachusetts small businesses and their workers,” stated Christopher Carlozzi, Massachusetts state director for NFIB. He noted that employers have faced significant premium increases while legislative focus remained on access and quality over affordability. “Today’s action by the Division of Insurance is a step towards recognizing the state’s health insurance affordability problem that has plagued small businesses for decades now.”
Earlier this year, NFIB released a report titled “Addressing the Health Insurance Affordability Crisis for Small Businesses.” The report highlights similar challenges nationwide as those faced in Massachusetts, indicating that health coverage is becoming increasingly unsustainable for many small businesses and their employees.
Key findings from the report show a decline in enrollment in the small-group market from 15 million individuals in 2014 to 8.5 million in 2023, marking a 44% decrease. It also noted substantial increases in average premiums over two decades: single plan premiums rose by 120%, and family plan premiums increased by 129% for companies with fewer than 50 employees. Currently, only 30% of small businesses offer health insurance compared to nearly half in 2000.
The report also revealed that nearly all small businesses are worried about affording health insurance within five years, and they pay twice as much as larger firms do. Companies earning less than $600,000 annually spend almost 12% of payroll on health benefits, whereas larger firms spend about 7%.
Carlozzi further remarked on discussions held during the June Small Business Summit at the State House where business owners shared their struggles with Commissioner Caljouw regarding affordable healthcare offerings. “It is encouraging to see their pleas were not ignored,” he added.
NFIB continues its advocacy work supporting America’s independent business owners across Washington D.C., and all state capitals since its founding in 1943.
