Small Business Association of Michigan CEO says health care reckoning coming for small businesses

June 8, 2026 - 17:31

Small Business Association of Michigan CEO Brian Calley says the rising cost of employee healthcare is the looming giant for employers. In a recent address, Calley warned that the current system is heading toward a "reckoning" that could force many small businesses to make difficult choices about their workforce and their future.

Calley pointed to double-digit premium increases that have become routine for many small firms, far outpacing inflation and wage growth. He noted that unlike large corporations, small businesses lack the bargaining power to negotiate better rates with insurers. This leaves them stuck with plans that eat up a growing share of their revenue, often forcing them to shift more costs onto employees through higher deductibles and copays.

The CEO argued that the situation is unsustainable. He said that if costs continue to climb at the current pace, many small business owners will be forced to drop coverage altogether, leaving their workers to fend for themselves on the individual market. Calley called for policy changes that would allow small businesses to band together to purchase insurance across state lines, creating larger risk pools that could lower rates. He also urged state and federal leaders to address the underlying drivers of healthcare inflation, including hospital consolidation and prescription drug pricing.

Without meaningful reform, Calley warned, the healthcare system will become a major drag on Michigan's small business economy, stifling job creation and economic growth. He described the issue as the single greatest threat to the long-term viability of Main Street employers.