January 9, 2024
The Honorable Tom Davis, Chairman
SC Senate Medical Affairs Subcommittee
203 Gressette Building
Columbia, SC 29201
Re: Senate Bill 855
Dear Senator Davis,
The SC Small Business Chamber of Commerce supports Senate Bill 855.
The bill calls for the creation of the Healthcare Market Reform Measures Study Committee to “study whether to recommend any of a variety of healthcare market reform measures that may benefit South Carolina consumers”.
While the number of uninsured South Carolinians has dropped significantly over the past decade, the number of uninsured or underinsured is still a serious problem for those impacted individuals and their families. Businesses providing employer-based health insurance also experience upward pressure on premiums due to the uncompensated care of the uninsured as well as the escalating cost of prescription drugs.
The below statistics demonstrate the serious problem this issue is for businesses.
- Nationally, all businesses offering employer-based health insurance saw an average increase of 2% in 2023.
- Another 2% average increase in health insurance premiums is expected for all businesses nationally in 2024.
- Employers with 500 or more workers across the country had an average increase in health insurance premiums of 6% increase in 2023.
- Nationwide employers with 50 to 499 workers had an average increase in health insurance premiums of 8% in 2023.
- In South Carolina 4% of businesses with 50 or more employees offer employer-based health insurance.
- In South Carolina only 1% of businesses with fewer than 50 employees offer employer based health insurance.
Federal law requires businesses with 50 or more employees to offer employer-based health insurance, which accounts for the very high percent of participation.
Real small businesses in South Carolina, most with fewer than 20 employees, have clearly opted out of providing employer-based health insurance due to the cost.
Unfortunately, this makes it difficult for small businesses to compete with larger businesses for employees and also means that their employees who cannot afford individual health insurance are more likely to be absent from their jobs due to health issues of their own or of their family members. Small business owners without group health insurance can also experience health insurance affordability issues for their own families.
For the above reasons, a study committee looking at potential reforms to the state’s health insurance marketplace would be very beneficial for small and large businesses.
We look forward to working with this study committee.
Sincerely
Frank Knapp Jr.
President & CEO
cc: SC Senate Medical Affairs Subcommittee Members
The Honorable Tom Corbin
The Honorable Margie Bright Matthews
The Honorable Richard Cash