Employer health coverage costs are expected to surge more than 9% in 2026, according to recent reports by two large insurance providers, which would be the largest business health insurance cost increases in at least 15 years.
While large employers can often absorb these increases, smaller firms would be facing a huge challenge.
The rise in healthcare costs has “disproportionately impacted smaller firms,” which pay twice as much for health insurance as their larger counterparts, leading to reduced profits and higher prices, according to the National Federation of Independent Businesses.