Michigan Small Businesses Face Health Coverage Crisis Due to Rising Costs

More than 40% of Michigan small business owners say they may have to decide within three years whether to drop employee health coverage altogether, as years of double-digit premium increases push them to a breaking point.

Another 16% said they may have to consider dropping health benefits within four to six years because they cannot continue to absorb the rising costs, according to a Small Business Association of Michigan May member survey.

Employers for a decade have steadily adjusted health benefits to manage rising costs, and now “more and more are questioning their ability to continue, and the ramifications for that are enormous,” Small Business Association of Michigan CEO Brian Calley told Crain’s.

“We have reached a breaking point,” he said. “What they’re telling us is they can’t do it anymore.”

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