Small businesses in Texas can’t catch a break when it comes to healthcare expenses. Last month, the Texas Tribune spoke with Texas employers who are carrying a huge burden in the form of rising healthcare prices. New data released just this month indicates that the burden is expected to get a lot heavier in coming months.
Less than a year ago, researchers with Peterson-KFF Health System Tracker warned that filings in the small group market, which covers plans offered to small businesses through the Small Business Health Options Program (SHOP), state-based exchanges, or directly from insurers, indicated proposed premium increases of as much as 15.4% — 12.5 percentage points higher than the then rate of inflation.
According to the latest data, released just this week, employers across the country can expect to see an additional increase of 14% on average in the coming year. But in Texas, the problem is worse.
Small businesses in Texas are facing a premium increase of 16.88% on average for 2027 according to current federal data. Not only is that above the national average, every insurer has requested a rate increase above the national average.
Texas employers are being bled dry by unrelenting healthcare price increases. Thankfully, the Texas Legislature has an opportunity to do something about this when they convene in January for the 2027 legislative session.
State lawmakers can help Texas employers, workers, and taxpayers by adopting common sense reforms that restore competition to the healthcare marketplace and ensure that employers have real access to their own data so they can evaluate and improve their health benefit plans.
The Texas Legislature can also build on existing federal billing transparency laws so that Texans only pay for the actual services they receive, where they receive them.
As Governor Abbott noted earlier this year, “small businesses are the backbone of the Texas economy.” Texas lawmakers will have an opportunity in the coming legislative session to provide real relief to Texas employers who are suffering under the growing strain of rising healthcare expenses.