Pub. 17 2020 Issue 1

16 O V E R A C E N T U R Y : B U I L D I N G B E T T E R B A N K S — H E L P I N G N E W M E X I C O R E A L I Z E D R E A M S T he rising cost of providing health insurance to employees is one of the top financial pressures facing owners of privately-held, small and midsize companies, according to a recent Enterprise Bank & Trust Think Tank survey. Enterprise surveyed 230 business leaders to understand issues, trends,andbestpracticesregardingmanagingtheever-growingcostofhealthinsurance. For most businesses, health insurance is a top line-item expense, next to pay- roll, and the only expense they gener- ally don’t have a lot of control over, the survey reveals. “Many small businesses have few options other than to be fully commercially insured, or not be insured at all,” said Susan Wilson, executive director of the New Mexico Coalition for Health Care Value. The Small Business Profitability Conundrum Beyond actual costs, much of the health insurance cost challenge stems from the fact that smaller businesses don’t have the buying power of larger ones and lack the time and resources to figure out the puzzle. Investing time in understanding and managing health care costs often gets pushed aside. In the survey, the top three business concerns related to the cost of providing health insurance are: 1. The impact of the cost of health insur- ance on the company’s profitability. 2. An increase in premiums would make health insurance for employees unaffordable. 3. The cost of health insurance lim- its the ability to award bonuses or give raises. Wilson goes on to say, “small-business owners increasingly rely on insurance brokers to help them get the best combi- nation of benefits and pricing.” Typically, small and midsize busi- nesses have less negotiating power due to their size. And because they are smaller, a few high-cost cases among their employee base can drive costs sky high. Health Insurance By Enterprise Bank and Trust