Small Business Hit Hard by Health Insurance Costs

Health insurance costs continue to skyrocket and last year’s high premiums have continued this year. In 2024 the average annual premium rose 6%. Single coverage hit an average $8,951 and family coverage rose to a whopping $25,572.

Medical cost increases and more use of healthcare services drove the increase.

Small business was hardest hit. Practically no bargaining power and almost non-existent cost-containment options kept prices much higher for small business than larger corporations. Add prescription drug prices going through the stratosphere and more demand for behavioral health services and you have a full-blown crisis.

Projections for the rest of 2025 show costs continuing to rise. Some analysts are predicting an 8% jump this year for the group market and 7.5% for the individual market.

Source link: Insurance Business America — https://bit.ly/4iOfuna