Small Businesses Struggle with New Health Care Rule: NFIB Calls for Withdrawal to Support Affordable Coverage Options

The National Federation of Independent Business (NFIB) has expressed disappointment with the recent final health care rule on short-term health plans which limits health care coverage for small employers. This rule restricts small businesses’ ability to choose health coverage by limiting access to flexible, low-cost, short-term health plans. NFIB had previously submitted comments to the administration opposing this rule.

Small businesses already face numerous challenges and this rule adds another layer of complexity and red tape. Jeff Brabant, NFIB Vice President of Federal Government Relations, stated that this rule is a step in the wrong direction for small business owners who are seeking more affordable, flexible, and predictable options for themselves and their employees. Small businesses are looking for more cost-effective solutions that won’t break their budgets or limit their ability to compete.

NFIB members have identified the rising cost of health insurance as one of their top concerns for over 40 years. A recent survey conducted by NFIB revealed that 56% of small employers currently offer health insurance to employees, while 44% do not. The primary reason cited by small employers for not offering health insurance is the cost, with 65% of respondents stating this as the main factor.

Furthermore, 98% 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. This underscores the importance of affordable health care options for small businesses and the need for policies that support their access to such coverage.

The NFIB is urging the administration to withdraw this rule to better support small employers who want more affordable, flexible and predictable options. They want a solution that will help them manage costs while still providing quality coverage for their employees.