Optimism is on the decline among small business owners, and reigning in the expenses and uncertainty related to health care could help turn that around.
The National Federation of Independent Business (NFIB) Small Business Optimism Index declined again in March, reaching the lowest level since December 2012. This is the 27th consecutive month that the Index has been below the 50-year average. “Small business optimism has reached the lowest level since 2012 as owners continue to manage numerous economic headwinds,” said NFIB Chief Economist Bill Dunkelberg.
There are a variety of factors impacting small businesses today, of which health care expenses could play a significant role.
- A recent survey found that health insurance renewal rates increased for 81% of employers last year, which came as a surprise to nearly all companies that were polled.
- The skyrocketing prices of health care are affecting employers and their employees alike: A peer-reviewed study published earlier this year in the Journal of the American Medical Association concluded that “3 decades of increasing health care premiums were likely associated with reduced annual earnings.”
- Forbes recently ranked Texas as the 5th most expensive state for health care, noting that the state has the fourth highest annual premium for family health insurance coverage through an employer.
With high inflation and low unemployment, small business owners face more than enough challenges without adding unnecessary burdens from health care expenses. By ensuring a healthy market for health coverage and health care, Texas lawmakers can help small businesses focus on what they do best — providing quality goods and services to their customers.