SBAM Sounds Alarm On Health Insurance Costs

(Source: MIRS.news, Published 06/02/2026) Rising health care costs are becoming one of the most significant threats facing Michigan small businesses, according to Small Business Association of Michigan (SBAM) President and CEO Brian Calley.

Speaking on MIRS Monday, recorded at the Mackinac Policy Conference, Calley said the issue is not receiving enough attention despite mounting concerns from business owners across the state.

"The most important issue that is not getting a lot of discussion in places like this is the rising costs of health care," Calley said.

Calley said small business owners who provide health insurance for their employees are facing year-after-year double-digit premium increases that are consuming resources that otherwise would be invested in growth, expansion and new hiring.

SBAM recently surveyed its members and found that 42% of employers who currently offer health insurance believe they are only one to three years away from being unable to continue providing coverage if current cost trends persist.

"It's spiraling out of control," Calley said, noting that many businesses are redirecting capital that would normally be used for future investments simply to keep pace with health insurance expenses.

Calley said most small businesses continue to provide health insurance directly through the small-group market rather than relying on employees to purchase coverage through the Affordable Care Act marketplace.

While some workers may qualify for federal subsidies in the individual marketplace, Calley said many small business employees earn too much to receive assistance, making marketplace plans an expensive alternative to employer-sponsored coverage.

He warned that continued cost increases could eventually force employers to provide workers with stipends to purchase their own insurance rather than maintain company-sponsored plans.

Asked about the causes of rising costs, Calley pointed to pharmaceutical prices and hospital expenses, both of which he said have increased at rates well above inflation.

He also cited consolidation within the health care industry as a contributing factor.

"There is a strong correlation between consolidation of health systems," Calley said. "It went from being a very decentralized system with a lot of players in it, to a few massive conglomerates that control most of the marketplace."

As policymakers look for solutions, Calley said one option worth exploring would allow small businesses from different industries to combine their employees into larger insurance risk pools. He suggested that giving small employers greater flexibility to pool coverage could help reduce costs and improve access to affordable health insurance.

The issue is likely to remain a major priority for SBAM as it advocates on behalf of its more than 32,000 members across Michigan.