FOR IMMEDIATE RELEASE

Media Contact:
Janel Knight Trulear
janel@emccommunications.com
(617) 875-6581

Ahead of Midterms, Survey of Small Business Owners in North Carolina Shows High Healthcare Prices Are Hindering Growth and Employment 

North Carolina small business owners are being held back by the high price of healthcare and want Congress and the healthcare industry to take steps to lower costs

Raleigh, NC, Oct. 19, 2022—A national survey of 1,209 small business owners, including 109 North Carolina respondents, shows that the high price of healthcare coverage is leading entrepreneurs in North Carolina and across the country to raise prices, stifling small business growth and hiring, and cutting into employee paychecks. 

Ahead of November's Congressional elections, 86% of small business owners in North Carolina feel very strongly that this is an issue that the nation’s lawmakers need to address, yet 86% worry our leaders will fail to act or not go far enough in addressing the issue.

Specifically the survey of small business owners in the Small Business for America’s Future North Carolina network  found:

• 72% of North Carolina small business owners responding are not offering health insurance, and nearly 73% said it was because the cost was too high. 
• 80% have seen the cost of health insurance increase over the last four years and 65% estimate the yearly increase of their healthcare costs is 10% or more. 
• Nearly half say that not being able to offer health benefits has made them less competitive in hiring, 34% have delayed pursuing growth opportunities, 33% have held off on hiring an employee, and a third have increased the prices of their goods or services to offset healthcare costs.

"The high cost of health insurance keeps businesses like mine from expanding," said Kenneth Fields, the owner of IT-HenHouse in Charlotte, NC. "High health insurance costs definitely lead to one thinking twice about hiring employees. I would love to see lawmakers do something about the price of health coverage so small businesses can make the most of growth opportunities that come our way."

High costs are leading small business owners, who employ nearly half of all Americans, to consider cutting or reducing coverage. Employees are also struggling with the expenses.

• 55% of North Carolina small business respondents have thought about no longer providing health insurance for their employees due to the rising cost of coverage, and 80% thought about reducing how much their business contributes to the cost of health insurance 
• Nearly half said employees raise the possibility of not being able to afford medical expenses

Finally, the survey shows that small business owners blame many in the healthcare industry—from hospitals to health insurance carriers to pharmaceutical companies—as well as government inaction for causing prices to climb every year. 

“Rising healthcare costs are adding financial stress to small business owners on top of inflation,” said Dr. Erika Gonzalez, Co-Chair of Small Business for America’s Future. “They are being forced to make difficult decisions like passing on the costs to consumers or requiring employees to shoulder a greater burden of healthcare costs to keep out of the red. This is damaging our economic health and stability. This survey makes it clear that small business owners want bold action to combat rising healthcare costs. As we approach the election, the question is: are our lawmakers and candidates listening?” 

View the full North Carolina survey report here.

View the full national survey report here. 

To schedule an interview with a representative from Small Business for America’s Future contact: Janel Knight Trulear at janel@emccommunications.com or (617) 875-6581.

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About Small Business for America’s Future
Small Business for America’s Future is a coalition of small business owners and leaders nationwide working to provide small businesses a voice at every level of government. We’re committed to ensuring policymakers prioritize Main Street by advancing a just and equitable economic framework that works for small business owners, their employees and their communities. Visit www.smallbusinessforamericasfuture.org. Follow us on Twitter and Facebook. #SmallBizAF.