Small businesses sometimes struggle to find affordable health insurance because they don’t know or understand all of their options
By Carol Newman
As health insurance costs rise, small businesses often scramble to find quality coverage options that are affordable for them and their employees.
Although slightly more than half (56%) of small businesses offer health insurance, 98% of those worry health care costs will become unsustainable for them within the next five to 10 years, according to the most recent Small Business Health Insurance Survey by the National Federation of Independent Business (NFIB) Research Center.
Furthermore, 94% of small employers find it challenging to manage the cost of offering employer-sponsored health insurance, according to the survey, and 65% of small businesses that do not offer it say it is too expensive to provide.
“Inflation and rising health care costs are making it more difficult to find coverage that is affordable for employers and employees,” said Rachel Bechtel, vice president, commercial business strategy and market solutions with Florida Blue, Florida’s Blue Cross and Blue Shield health plan. “But employees are still looking to their employers to provide health care options for them and their families.”
U.S. employers expect total health benefit cost per employee to rise 5.4% on average in 2024, according to preliminary results from Mercer’s National Survey of Employer-Sponsored Health Plans 2023. While many employers do not plan to increase employees’ share of the cost coverage in 2024, about two-thirds of businesses say strategies to improve health care affordability will be important over the next few years.
Small businesses sometimes struggle to find affordable health insurance because they don’t know or understand all of their options. “Insurance isn’t one-size-fits-all and there are ways to drive down costs,” Bechtel said.
Florida Blue offers a range of health and wellness services to help small businesses engage their employees and manage costs. “We have a comprehensive portfolio designed to meet the price points and coverage options employers are looking for,” Bechtel said. “We proudly serve the insurance needs of more than half of Florida’s small businesses which gives us an incredible opportunity to hear from these employers and better understand their unique challenges and how we can help solve them.”
Florida Blue’s small group health insurance plans vary from lower-cost options with narrower networks of providers (like SimplyBlue and Truli for Health) to plans with an expansive network (like BlueOptions).
This fall, Florida Blue is reintroducing its Small Group Balanced Funding solution. Available for coverage effective Jan. 1, the level-funding arrangement combines elements of fully insured and self-funding plans for a fixed premium. “While it provides the advantages of self-funding, which larger groups tend to use, there’s peace of mind associated with the stable monthly payment. With this level-funding solution, small businesses are able to budget without surprises. They can also earn money back if their claim costs are lower than they anticipated,” Bechtel said.
This enhanced level-funding solution on fully insured health insurance plans for small businesses includes increased group eligibility, simplified quoting, plus better claims and stop-loss reporting — visibility that helps employers know sooner about high-dollar employee medical bills and claims impacting their insurance plans. “This brings forward a more affordable premium as well,” Bechtel said.
Wellness programs are another popular way for a business to help manage costs. Florida Blue, for example, offers value-added health and wellness services like health advice from registered nurses and enrollment in personalized care programs through the local Florida Blue Centers across the state — all at no extra cost to the employee or their employer. Such services can help reduce health care costs, thereby saving money for both the business and its workers.
For small business owners, it can make a big difference when they work with an agent and insurer who can help them pick the best health insurance solutions for their business. Established insurers offer a high degree of stability. With a history of serving Florida for almost 80 years, Florida Blue partners with agents across the state to help businesses find coverage they can depend on.
Health care costs may be rising, but small businesses can find affordable coverage when they know where to look and how to find the options available.
Driven by its mission of helping people and communities achieve better health, Florida Blue serves more than 6 million members across the state. Headquartered in Jacksonville, Florida, Florida Blue, a trade name of Blue Cross and Blue Shield of Florida, Inc., is an independent licensee of the Blue Cross and Blue Shield Association. For additional information about Florida Blue, please visit floridablue.com or call (877) 352-5830.
