Prairie State Wire

NFIB Illinois has addressed a letter to the Illinois House and Senate Insurance Committees, expressing concerns over proposed policy changes that may lead to increased health insurance costs for small businesses. The state regulates health insurance plans not covered by the federal Employee Retirement Income Security Act (ERISA), which most small employers use.

The proposed changes aim to expand coverage mandates and restrict cost-saving measures in non-ERISA plans, potentially raising premium costs for small businesses. In the letter, Noah Finley, NFIB Illinois State Director, stated: "This year a number of bills have been introduced in the General Assembly that would expand coverage mandates for non-ERISA health-insurance plans. Some of these bills also limit cost-sharing measures for specified treatments/interventions. These changes will cost money."

Finley highlighted that larger employers using federally regulated ERISA plans would not experience changes in coverage requirements. He noted: "Unfortunately for most small businesses, they are ineligible to participate in these ERISA plans and, as such, would be subject to any resulting increases in premium costs."

The burden of providing employee health insurance is significant for small businesses. A report by NFIB revealed it as their top problem last year. Additionally, a 2023 survey showed that 94% of small-business respondents found it challenging to provide health insurance to employees.

Finley warned about the impact of increased non-ERISA insurance costs amid economic challenges like inflation and worker shortages: "In a competitive job market, raising the cost of small-employer health insurance plans makes it harder for small businesses to compete with multinational corporations that are eligible for non-impacted ERISA health-insurance."

NFIB urges legislative committees to consider how expanded coverage mandates and limitations on cost-sharing could affect small businesses' ability to offer employee health insurance.

"Thank you for your support of Illinois’ small-business community," Finley concluded.