Every four years, the National Federation of Independent Business releases a study ranking small business owners‘ problems and priorities. In New York, the top concern for small business owners is the cost of providing health insurance. This has been the number one issue since 1986, highlighting the ongoing challenges faced by small businesses in the state.
Ashley Ranslow, the New York State Director for the NFIB, explained that small business owners are asked to rank 75 different situations or concerns. A national sample of 40,000 NFIB members was drawn, with a separate sample of 1,500 drawn for New York to create state-specific rankings. The high cost of health insurance in New York is attributed to the nature of the small group market, where premiums tend to increase more for small businesses compared to larger corporations.
Eric Linzer, president and CEO of the New York Health Plan Association, points to the increasing cost of care and legislation mandating benefits as reasons for the high ranking of health insurance costs. He believes that policymakers need to reconsider some of these proposals to alleviate the burden on small business owners. Additionally, there are concerns that the proposed New York Health Act, which would transition the state to a single-payer system, could further increase costs for employers and consumers.
Advocates for the New York Health Act argue that it would actually reduce costs for small business owners by eliminating out-of-pocket expenses and administrative hassles associated with private insurance. State Sen. Gustavo Rivera cites a study by the RAND Corporation, which suggests that the majority of New Yorkers, including small business owners, would save money under the proposed single-payer system.
While health insurance remains a top concern nationwide, New York differs from other states in its ranking of certain issues. Taxes on business income, unemployment insurance, workers‘ compensation, and the cost of gas and electricity rank higher in New York compared to the national average. Ranslow emphasizes that state lawmakers should address these issues to support small businesses in the state.
In addition to the aforementioned concerns, other top 10 priorities for small business owners in New York include the cost of supplies and inventory, uncertainty over economic conditions and government actions, and locating qualified employees. These challenges highlight the complex landscape in which small businesses operate and the need for targeted solutions to support their growth and success.