For decades, rising costs in health care have led to increasing health insurance costs. In response to these rising costs, many small businesses have been forced to increase deductibles and copays and defer a higher percentage of premiums to employees. As small businesses are responsible for roughly half of Michigan’s jobs, ensuring that employers can provide their employees with quality, affordable health insurance should be a top priority for state policymakers. To support Michigan’s small businesses, lawmakers should seek to support policies that lower cost of quality care, improve transparency in the system, limit harmful mandates that drive up prices, promote flexibility, and encourage a competitive marketplace.

Vertical integration and market consolidation have presented barriers to both transparency and competition by introducing conflicts of interest and price hikes. SBAM supports measures that foster a competitive, informed marketplace and allow policyholders to make informed decisions with their care. Business owners and employees should be empowered to easily shop for the care that best suits their needs. Meanwhile, transparency requirements should expose conflicts and industry ethics rule violations.

Health care is a heavily regulated industry and there is no expectation for mandates on health care and health insurance to be lifted completely. However, overly burdensome regulations tend to be a primary driver of high costs, which disproportionally harm small employers more than their larger, self-insured competitors. Mandates that require specific benefits be covered or require costs for specific care to be capped at an arbitrary rate shift costs to businesses and other ratepayers. Similarly, mandates that require specific nurse to patient ratios increase costs for care providers and eventually for ratepayers.