New HHS Rules Tackle Small Businesses Top Concern: Rising Healthcare Costs

Over the past several years, small businesses have seen their health insurance premiums increase exponentially, making controlling costs their No. 1 priority in healthcare reform. The regulations the Department of Health and Human Services issued today aim to address these growing costs and get small businesses some relief from exorbitant rate hikes, which will enable them to spend less on premiums and more on expanding their businesses and creating jobs.

Our research shows 86 percent of small businesses that don't provide insurance to their employees can't afford it, and 72 percent are struggling to do so. However, 66 percent feel a responsibility to offer health insurance to their workers.

When small businesses are being hit with rate increases as high as 160 percent in some cases, they begin having to make one draconian business decision after another just to keep their doors open. The 22 million self-employed are especially vulnerable and have no way of preventing these price jumps. The rules proposed today will help change that. Insurance companies will be required to justify any unreasonable increases in premium rates, which will bring greater transparency and accountability to insurers who for years have profited at the expense of small businesses.

Small businesses need all the help they can get to weather this economic recession. We're encouraged to see rules specifically aimed at reining in insurance costs, which will benefit small businesses and the millions they employ.