Business
Nine in 10 Small to Mid-Sized Businesses Worry They Won't Be Able to Afford Health Benefits in Three Years
Amid concerns about rising costs and administrative burdens, 75% favor a move to a "defined contribution" approach to health benefits Awareness of this
About this update from Ehealth, Inc.
[{"type":"text","content":"Amid concerns about rising costs and administrative burdens, 75% favor a move to a \"defined contribution\" approach to health benefits\nAwareness of this approach remains unchanged from last year, despite recent discussion by Congress to offer tax incentives as part of the Big Beautiful Bill\nAUSTIN, Texas, Aug. 20, 2025 /PRNewswire/ -- eHealth, Inc. (Nasdaq: EHTH), a leading health insurance marketplace, today released new research showing most small- to mid-sized employers are worried about being able to afford offering health benefits in the future, while awareness of a defined contribution approach remains unchanged from a year ago.\nMost respondents say the current model of health benefits is no longer working, with 75% expressing interest in an approach that mirrors what is available through Individual Coverage Health Reimbursement Arrangements (ICHRA). This model allows employers to contribute to employee health insurance premiums without serving as sponsor, enabling employees to buy a plan through a private or government exchange.\n\"Just as retirement savings shifted from pensions to 401(k)s decades ago, a similar transition is underway for health benefits,\" said Fran Soistman, CEO, eHealth. \"Among small businesses, enrollment in ICHRA plans is up 52% this year, and more employers are looking at how this approach can help their workforce obtain health insurance while better controlling costs and reducing administrative burdens.\"\nFindings from the survey of 500+ owners and managers of small to mid-sized include:\nThe status quo isn't working for many small to mid-sized businesses.\n89% of those currently sponsoring group health plans worry they won't be able to afford it within three years.93% say it's time for a new health benefit solution, because the current model isn't working anymore.Most think an ICHRA-style model makes more sense in theory, although awareness of this approach remains low.\n75% of respondents say employers should make defined contributions for employees to use toward purchasing their own coverage, rather than sponsoring a traditional employer-based group health plan.66% of those not currently offering group health benefits say they would contribute toward the cost of employee-purchased health insurance premiums if there were a way to do so.54% of respondents remain unfamiliar with or uneducate...