Nine in 10 Small to Mid-Sized Businesses Worry They Won't Be Able to Afford Health Benefits in Three Years

Core Insights - A significant majority of small to mid-sized businesses are concerned about the affordability of health benefits, with 90% expressing worries about future costs [2][7] - There is a strong interest in transitioning to a defined contribution model for health benefits, with 75% of respondents favoring this approach [1][7] - Awareness of Individual Coverage Health Reimbursement Arrangements (ICHRA) remains low, despite a 52% increase in enrollment among small businesses this year [3][4] Survey Findings - 93% of small to mid-sized businesses believe the current health benefit model is ineffective and requires a new solution [7] - 66% of businesses not currently offering group health benefits would contribute to employee-purchased health insurance premiums if feasible [7] - 54% of respondents lack familiarity with ICHRA, indicating a need for better education on this option [7] Government and Policy Implications - 92% of respondents feel that government leaders are not adequately addressing the health benefit challenges faced by business owners [7] - 82% of businesses would be more inclined to adopt ICHRA if tax incentives proposed in the House version of the Big Beautiful Bill were implemented [7]