Small Business Owners’ Plea to Michigan’s Next Elected Leaders: Please Contain Health Care Costs!
September 30, 2026
Latest SBAM survey shows top election issue for small businesses is health care affordability
Lansing, MI – They’ve been sounding the alarm on rapidly escalating costs for several years and are now hoping those running for office are paying close attention, as small business owners from across the state overwhelmingly say that health care affordability for employees is their top issue as Michigan chooses a new Governor and Legislature to take office in 2027.
Surveyed for the Small Business Association of Michigan (SBAM), two-thirds of small business owners said containing health care costs should be the top priority for incoming elected officials. Taxes and workforce availability came in second and third, respectively, as the most important issues for the new lawmakers and gubernatorial administration to address.
“The small businesses of Michigan are varied in many ways, from geography to industry, but there is one major thing they’re united on: they are being absolutely crushed by the increasing costs of health care,” said Brian Calley, President and CEO of SBAM. “Despite year-over-year increases of thousands of dollars in premiums per employee, policymakers have not made any progress toward solutions.”
Eighty-four percent of small business owners said employee health care premiums increased by up to $2,000 per employee from 2025-2026. The other 16% said they increased by $2,000 or more per employee.
Calley continued: “Sadly, two-thirds of those surveyed said Michigan is becoming less friendly to small businesses. Those who say they are advocates for small business need to show that with actionable policies, not just words. To be sure, Michigan faces other critical challenges, but without addressing health care costs, we can be certain our economy will contract.”
Continually paying more in health care premiums prevents small business owners from investing in other aspects of their growth: hiring additional employees, expanding services or hours, or investing in new equipment and products. Workforce challenges for small business owners also remain, but the challenges have shifted from talent shortage to rising labor costs and qualified applicants.
Other survey findings:
- 69% have increased wages and benefits, including paid time off, to attract or retain employees in the past year
- 27% said inflation is the single biggest issue facing their business, 18% cite the economy, with 14% saying quality of labor, and 13% saying availability of labor
- 29% say the confidence in the future of their business has decreased during 2026; 22% say it has increased, and 49% say it stayed the same
- 77% support legislation to purchase health coverage as a self-insured plan (an Association Health Plan)
Of those surveyed, 81% own a business with 50 employees or less. The survey was conducted in August and September of 2026. Click here for the full report.
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