Josselin Castillo, the Principal of Federal Government Relations at the National Federation of Independent Business (NFIB), recently participated in a discussion with Scott Becker on Becker’s Healthcare Podcast. The conversation centered around the ongoing health insurance affordability crisis affecting small businesses in America.
Castillo highlighted findings from NFIB's latest health care policy paper and proposed solutions for lawmakers to consider. These measures aim to improve access to health insurance plans for Main Street business owners.
In his interview, Castillo noted a significant decline in the small group insurance market since 2014. "A recent report that we released took a look at what we call the small group insurance market nationwide, and we are seeing a deterioration that is happening rather rapidly," he said. The market has reportedly lost about 43% of its beneficiaries and 60% of carriers during this period, leading to fewer options for coverage.
Castillo emphasized that businesses employing ten or fewer individuals have experienced the sharpest decline in offer rates for health benefits. He explained, "The businesses that employ 10 or fewer individuals is actually the segment of the business community that has seen the sharpest decline in what we call offer rates." Two decades ago, half of all small business owners provided some type of health benefit; however, this figure has now dropped to 30%, with even lower numbers for smaller enterprises.
The NFIB's paper suggests incremental changes Congress could implement to ease access to necessary tools for small business owners who wish to provide health benefits. Castillo remarked on their efforts: "Many of them are adopting wellness programs... but they need the tools and sadly, I think what we’re seeing right now is a collapsing market."
For over eight decades, NFIB has been an advocate for America's small and independent business owners across Washington D.C., and all state capitals. The organization remains dedicated exclusively to supporting these businesses since its founding in 1943.
