Small Business Health Insurance Costs: A Look at the Stats


November 20, 2021

Everybody knows that health insurance isn’t cheap.


What everyone doesn’t know is the state of various trends within the industry. Are costs rising? Are they falling? Are trends the same for employers and employees? And here’s the big one: How can I find a healthcare model that works for me and my business?

For small businesses, these questions are important. In fact, they’re critical. That’s why it makes sense to keep up with current trends. 


Here are some key takeaways as of August 2021

  • In its 2020 analysis, the Kaiser Family Foundation concluded that employer-sponsored premiums rose 4% compared to the previous year’s figures, reaching an eye-watering average of $21,342 for family health coverage. Of that, an average of $5,588 was contributed by employees, with employers covering the rest. 


  • The same survey found that an employee-sponsored individual plan costs $7,470 on average, also up about 4% from the previous year.


  • Long-term industry trends show that insurance costs are rising much more quickly than wages. In 2020, the average family premium was 55% higher than in 2010, while wages increased by only 27% in that timeframe. (This discrepancy is further exacerbated by inflation, which measured 19% from 2010 to 2020.) 


  • A study from the Robert Wood Johnson Foundation, conducted in early 2021, sought to examine the effects of the COVID-19 pandemic on small businesses nationwide. Researchers found that the health insurance market for small businesses remained relatively stable throughout the pandemic, and that there was no large-scale shift toward individual health insurance. However, the long-term outlook is more negative. Fewer small businesses are offering comprehensive coverage, and small-group insurance costs remain high.


  • In 2020, almost half of small businesses nationwide offered comprehensive health coverage. As of 2021, less than one third of small businesses offer comparable coverage. The Robert Wood Johnson Foundation estimates that without decisive legislative action at the state or federal level, this trend will continue and costs will remain high. 


So what’s the best way to navigate a changing industry? In times of doubt, a hybrid model offers unparalleled flexibility and control. 


SureCo's Enrollment Platform is just such a hybrid model. A groundbreaking corporate health insurance solution, SureCo offers a hybrid healthcare model that promotes flexibility and ease for employers while maximizing empowerment and choice for employees. 


How does it work? In short, SureCo's Enrollment Platform allows employees to choose their own health insurance providers. They “own” their healthcare plans rather than “rent” them. So if employees lose or change jobs, they may retain their plans without any need to invoke their COBRA rights. 


For their part, employers benefit from a system that lowers costs and requires minimal HR oversight, freeing up hours for dedicated HR professionals to use on more important tasks. SureCo also helps firms attract top-notch talent, as its hybrid system is more attractive to job candidates than fully individual or employee-sponsored coverage may be.


It’s clear that SureCo's Enrollment Platform is the better alternative. Looking to learn more? Schedule a demo today!


Download SureCo's ICHRA Guide




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