KFF: Insurers want to hike small businesses’ premiums by 14% next year

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Dive Brief:

Small businesses could face a double-digit increase in premiums for their health coverage next year, as insurers contend with rising medical prices, expensive specialty drugs and other factors inflating spending.

Insurers are requesting a median 14% premium increase for the small group market next year, according to a new analysis of rate filings from health policy research group KFF. Most insurers want to raise rates between 10% and 20%, though six want to hike rates above 30%.

Steep premium hikes will worsen the financial strain on small businesses, which could be forced to turn to cheaper plans with worse consumer protections — or stop offering coverage altogether, exacerbating years of declining enrollment in the small group market.