Little employers are fighting the growing costs, rates and recession. Even so, many small companies are a strategy on how to combat these winds against, even when it comes to health insurance, according to a recent Chase report.
The 2025 Midyear Business Leaders Outlook Pulse, published last week, surveyed 563 small businesses in June. He discovered that inflation is the “headache number one for business owners”, with 32% of respondents who select this as a superior challenge in 2025. Despite inflation, 40% of companies said they plan to continue growing, 35% maintain and are slowing down. To combat inflation, many seek to reduce non -assistial expense.
In addition, approximately a quarter of respondents gave tariffs as a challenge among the top three for their business. About 54% said they expect tariffs to damage profits. Even so, 63% are “extremely or very” sure that they can mitigate the impact of rates. Strategies include changing supplier and renegotiate contracts.
The survey also found that the increase in medical care costs is having an impact on hiring, with 33% of small businesses that indicate that the high costs of health insurance are partially why they restrict hiring. Even so, about eight out of 10 respondents said they already provide health insurance. Or those who plan to increase coverage, 63% are doing this to provide a high quality plan. And about 36% of respondents said that attracting new talents is the reason why coverage is increasing.
On the other hand, of those who consider discontinuing, reducing or changing coverage, 55% said that economic uncertainty is the main reason.
“Offering high quality and affordable health insurance is a crucial strategy for small and medium enterprises to attract and retain talent, especially at a time when finding appropriate qualified workers for their business is becoming more difficult. However, the increase in medical care costs and broader economic uncertainties pose significant challenges,” said Molly Chidester, executive director of Morgan Health, said Medcity News. Morgan Health is a business unit JPMorgan Chase focused on insurance sponsored by the employer.
Chidester added that “innovative insurance plans designs” can be beneficial for small employers. This includes those tested by Centivo, that self -financed employers, and Venteur, which provide solutions from the individual coverage health reimbursement (ICHRA). ICHRA allow companies to give employees a monthly tax -free money allocation so that they can buy health services for their specific needs. Both companies “are aimed at maintaining low and predictable costs while helping employees obtain quality medical care,” Chidester said.
Morgan Health is an investor in Centivo and Ventur.
Chase’s survey also found that many small businesses are resorting to AI to support growth: 34% plans to adopt AI tools this year, and 80% plan to implement them in 2026.
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