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Small Business Owners Pay More for Employee Health Insurance

Most small business owners said they paid more for insurance premiums per employee in 2013 than they did in 2012, according to a recent survey from the National Federation of Independent Business.

In the survey of 921 U.S. small business owners and operators, 64 percent said they paid more for premiums.  Deductibles for beneficiaries of small business health insurance products also rose in 2013. While 67 percent of plans maintained deductibles at the prior year’s level, another 28 percent increased deductibles; only 4 percent lowered deductibles in their plans.

The average health insurance premium cost incurred by small businesses (employer and employee shares) in 2013 was $6,721 a month ($80,652 a year). The median cost was about $3,500 every 30 days. The survey also found that the net proportion of small businesses expected to offer health insurance in 2014 was projected to increase, which would break a decade-old trend.

Among small employers that don’t offer health insurance, 14 percent provide reimbursement or a direct payment to employees for the purchase of health insurance.  The full survey is available at

Last modified onTuesday, 14 January 2014 20:52

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