Health plans that attract the working uninsured

The United States labor force is built on the shoulders of small businesses. More than one-third of the workforce is employed by a firm with under 100 employees- whether that be in hospitality, food services, or startups. According to the U.S. Census, this number represents more than 40 million employees, a number that with the fortune of a thriving economy, will only continue to grow.

But this positive outlook doesn’t seem to be resonating with small business owners, according to insights from the National Federation of Independent Business. The federation’s “Small Business Optimism Index” took into account small business plans to increase employment and inventories, as well as their expectations of personal sales and overall economic and credit improvement- all of which declined from December 2015. The waning optimism of small business owners point to the largest economic challenges facing small businesses today: balancing affordability with growth.

This balancing act has long been witnessed in the small business health insurance market where the majority of small businesses continue to not offer health insurance benefits primarily out of fears of affordability. These small businesses make up the bulk of the working uninsured, according to the Kaiser Family Foundation, who, in a prosperous economy, are looking for competitive benefits. For insurers and brokers alike, effective strategies for attracting this coverage gap comes from knowing your audience and meeting them where they are. Part of which comes from a deeper understanding of their pain points. Small businesses have proved to be one of the most elusive populations to serve, despite efforts under the Affordable Care Act (ACA) to do just that with the creation of the Small Business Health Options Program (SHOP) Marketplace and the existence of small business tax credits to make small group health plans a more affordable option.

Yet affordability remains not only a top concern for these small business employers, but also the employees in which they represent. According to U.S. Census data, the average salary for small businesses with under 50 employees remains under $40,000, well below the national household average. Adding to the complexity, blue-collar employees may work multiple jobs across all industries, as seen with part-time employees suffering most under this coverage gap.

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