Ga. small businesses shouldn’t have to sacrifice health care coverage to grow
Georgia’s strong economy is built on a business-friendly environment that attracts investment and supports growth.
But beneath this success, companies — especially small businesses — are struggling with something that keeps getting more expensive every year: the cost of health insurance.
Health care isn’t simple, and employers often must make tough decisions about what they can realistically offer their employees.
Family health insurance premiums rose 6% in 2025 and increased by 7% in each of the previous two years.
Over the last five years, family premiums have climbed 26%, as inflation and wage growth continue to be problems. These rising costs are driven by expensive prescription drugs, chronic health issues, increased use of medical services and rising hospital prices.
If nothing changes, businesses will bear an even heavier financial burden. Since health care is typically their largest expense after payroll, rising costs could prevent employers from offering strong benefits or even force them to choose between covering employees and growing their business.
Many small business owners in Georgia worry that continuing to offer traditional group health plans could become unaffordable within the next decade.
New model benefits businesses and employees
Without competitive health benefits, businesses risk losing employees to companies that offer more affordable coverage. That’s why Georgia should consider new, more flexible health insurance options that give both employers and employees more control.
One promising approach is the Individual Coverage Health Reimbursement Arrangement. This model gives employers a predictable, cost-effective way to provide health benefits while allowing employees to pick a plan that fits their personal needs and budget.
The proposed Georgia Small Business Resiliency Act (House Bill 1110), would let businesses with fewer than 50 employees start offering ICHRAs on July 1.
Employers would give their workers a set monthly contribution, and employees could use that money to buy their own health insurance — either through a private insurer or Georgia’s state-based exchange. This marks a major shift away from “one-size-fits-all” coverage and moves toward personalized choice.
Interest in ICHRAs is growing. In Georgia, adoption rose from 505 businesses in 2024 to 600 in 2025 — an increase of almost 19%. This shows more employers are looking for affordable, flexible ways to offer health benefits.
Agent/broker’s role is a vital part of the equation
With an ICHRA, employers provide tax-free dollars for employees to purchase their own health insurance instead of offering a traditional group plan.
This approach works well for today’s workforce, which may include full-time, part-time, remote, seasonal and geographically dispersed employees. Georgia’s individual health insurance market offers plans across bronze, silver, gold and platinum tiers, so employees can choose coverage that fits their budget and preferred providers.
For employers, ICHRAs help control costs by offering predictable spending and fewer administrative burdens. For employees, they offer more choices and potentially more consistent coverage, even if they change jobs.
By encouraging the use of ICHRAs through tax-advantaged contributions, Georgia can help both employers and employees access affordable coverage. This stability allows businesses to focus on growth and job creation, strengthening Georgia’s economy and helping companies stay competitive.
Georgia’s economy is strong, but now is the right time to make sure employers can continue to offer meaningful health benefits while still investing in their future.
A vital part of the equation is the role of the agent/broker. Inasmuch as the case with Georgia Access, during annual enrollment, internal data from Georgia Access revealed 80% of the enrollees are a result of the efforts put forth by the independent agent/broker.
The health care consumer relies on the advice and knowledge provided by the independent agent/broker community, which should encourage appropriate compensation for this valuable distribution channel.
Mychal H. Walker Sr. is chairman of the National Federation of Independent Business Georgia Leadership Council, president-elect of the National Association of Benefits and Insurance Professionals and a member of the Georgia Public Board of Health.
