Report: Small businesses work to balance costs and health coverage

Small employers fight against the increase in costs, prices and recession problems. However, many small businesses develop strategies on how to fight against these winds, including with regard to health insurance, according to a recent Chase report.

The Chase 2025 Midyear Business Leaders Outlook Pulse, published last week, interviewed 563 owners of small businesses in June. He found that inflation is “first headache for business owners”, with 32% of respondents who selected this as a challenge for the first three in 2025. Despite inflation, 40% of companies said they were planning to continue to grow, 35% maintain and 25% slow down. To combat inflation, many seek to reduce non -essential spending.

In addition, approximately a quarter of respondents cited the prices as a challenge among the first three for their business. About 54% said they expect prices to affect profits. However, 63% are “extremely or very” confident that they can alleviate the impact of prices. Strategies include change of suppliers and renegotiation of contracts.

The survey has also revealed that the increase in health care costs has an impact on hiring, 33% of small businesses indicating that higher health insurance costs are partly why they retain hiring. However, about eight respondents out of 10 said they were already providing health insurance. Among those who plan to increase the coverage, 63% do so to provide a better quality plan. And approximately 36% of respondents said that attracting new talents is the reason they are increasing the coverage.

On the other hand, of those who plan to stop, reduce or change the coverage, 55% have said that economic uncertainty is the main reason.

“Offering high -quality and affordable health insurance is a crucial strategy for small and medium -sized enterprises to attract and keep talents, especially at a time when finding good qualified workers for their business becomes more difficult. However, the increase in health care costs and wider economic uncertainties pose significant challenges, “Molly Chidester, executive director at Morgan Health, told Medcity News. Morgan Health is a JPMorgan Chase commercial unit focused on the insurance sponsored by the employer.

Chidester added that “designs of innovative insurance plans” can be beneficial for small employers. This includes those provided by Centtivo, which offers plans for self -funded employers, and Ventor, which provides health reimbursement solutions for individual coverage (ICHRA). ICHRA allows companies to give employees a monthly tax free tax allowance so that they can buy health services for their specific needs. These two companies “aim to maintain low and predictable costs while helping employees obtain quality health care,” said Chidester.

Morgan Health is an investor in Centivo and Ventor.

The Chase survey has also revealed that many small businesses are turning to AI to support growth: 34% plan to adopt AI tools this year, and 80% plan to implement them in 2026. Health and medicine companies are most distant in the adoption of AI, while construction is less likely to adopt AI.

Photo: Damon_moss, Getty Images