SBAM survey: containing  health care costs should be a top priority for  elected officials

Surveyed for the Small Business Association of Michigan (SBAM), two-thirds of small business owners said containing health care costs should be the top priority for  elected officials. Taxes and workforce availability came in second and third, respectively, as the most important issues for the lawmakers and gubernatorial administration to address.

“The small businesses of Michigan are varied in many ways, from geography to industry, but there is one major thing they’re united on: they are being absolutely crushed by the increasing costs of health care,” said Brian Calley, president and CEO of SBAM. “Despite year-over-year increases of thousands of dollars in premiums per employee, policymakers have not made any progress toward solutions.”

Eighty-four percent of small business owners said employee health care premiums increased by up to $2,000 per employee from 2025-2026. The other 16% said they increased by $2,000 or more per employee.

Continually paying more in health care premiums prevents small business owners from investing in other aspects of their growth: hiring additional employees, expanding services or hours, or investing in new equipment and products.  Challenges have shifted from talent shortage to rising labor costs and qualified applicants.

Other survey findings include:

• 69% have increased wages and benefits, including paid time off, to attract or retain employees in the past year

• 27% said inflation is the single biggest issue facing their business, 18% cite the economy, with 14% saying quality of labor, and 13% saying availability of labor

• 29% say the confidence in the future of their business has decreased during 2026; 22% say it has increased, and 49% say it stayed the same

• 77% support legislation to purchase health coverage as a self-insured plan (an Association Health Plan)

Of those surveyed, 81% own a business with 50 employees or less. The survey was conducted in August and September of 2026.

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