MiBlue Daily
June 3, 2026
For years, small business advocates in Michigan have warned rising healthcare costs were becoming unsustainable. New survey data from the Small Business Association of Michigan (SBAM) suggests many employers may now be at a tipping point.
More than half of Michigan small businesses say they may be forced to reduce or eliminate healthcare benefits because of rising costs, according to a recent SBAM survey highlighted by both SBAM itself and DBusiness Magazine. The findings underscore a growing issue that extends beyond households and into Michigan’s broader economy.
The survey of roughly 300 small business owners found 51% have already reduced or eliminated benefits due to rising healthcare costs, while 76% said the cost of providing coverage is affecting their ability to hire new employees. Most respondents also said health insurance costs are limiting investments in other areas of their businesses.
These concerns have been bubbling for years. Blue Cross Blue Shield of Michigan is very aware of them, which is why we’ve been engaged in developing solutions.
Last year, SBAM survey results revealed that 76% of small business owners said the cost of providing healthcare is affecting their ability to hire more employees. Michigan small businesses have consistently described healthcare affordability as one of their top business challenges, particularly as employers face back-to-back premium increases and higher pharmacy costs.
As the largest insurer in Michigan, we recognize that keeping health insurance affordable requires coordinated action across the entire healthcare ecosystem. For us, that means investing in healthier communities, improving access to preventive and primary care, supporting value-based payment models that reward better outcomes, and leveraging technology and data to eliminate waste and inefficiency.