Report: Small-group health market shrinking
June 11, 2009
As attention in Lansing focused on individual coverage, the health insurance market for small businesses in Michigan shrank again in 2008.
The number of member months in the small-group market for companies with two to 50 employees declined 12.7 percent last year to 8.8 million member months. Premiums paid decreased 7.9 percent to $2.44 billion, according to an annual report on small-group market competition by the Michigan Office of Financial and Insurance Regulation.
Scott Lyon, vice president of small business services at the Small Business Association of Michigan, attributes the decline to the economy and costs that together have a growing number of small businesses dropping coverage.