(Issues and Insights)—Health insurance is more expensive than ever. The average family plan last year cost employers and employees over $19,000 and nearly $6,300 per year, respectively. That’s enough to buy a new car.
Congressional Republicans’ budget reconciliation bill could help bring down those costs. Among other things, the One Big Beautiful Bill Act now under consideration in the Senate would expand access to “Individual Coverage Health Reimbursement Arrangements,” or ICHRAs, which allow companies to offer workers tax-free money to buy their own insurance on the individual market
That’s a good thing. By giving people more control over their healthcare dollars, ICHRAs could boost competition in the insurance market, force health plans to improve the quality of their products, and put downward pressure on prices.
Even for the biggest employers, health insurance can be a significant cost burden. The CEO of Starbucks once famously said that his company spent more on health care than on coffee.
For small businesses, the cost of health insurance can be downright prohibitive. In 2024, just 56% of businesses with fewer than 50 employees offered health insurance, compared with 89% of firms with 100 or more employees.
- Read More: issuesinsights.com