For years, rising premiums and shrinking insurer participation have priced many small firms out of offering robust health benefits. The number of carriers in the small-group market has dropped markedly over the past 10 years. We noticed this locally when Humana exited the employer group commercial health insurance market in 2023.
In the Dayton market and across Ohio, many small business owners have told us that health insurance costs loom as one of the single biggest expenses standing in the way of hiring, wage increases, or stable growth.
That is why the business association health plan approach, where small employers band together to form a larger risk pool, suddenly looks attractive. When a number of small businesses join the same association (or chamber-backed plan), they can unlock purchasing power generally reserved for large companies.
Those benefits can include lower premiums, more stable rates, access to broader provider networks, and administrative support.
We are fortunate at the Dayton Area Chamber of Commerce that our association plan is backed by a national employer health insurance provider, Anthem Blue Cross & Blue Shield. Having Anthem as our local partner provides confidence, security, and stability to Dayton-area businesses.
For our Dayton business community, the association plan is a game changer. Smaller companies that once couldn’t realistically offer health coverage are now able to affordably provide meaningful benefits that improve employee retention, morale, and competitiveness.
For entrepreneurs wrestling with thin margins, reduced overhead on health benefits may free up capital for hiring, expansion, or investment in their business.
That is why, as leaders in the Dayton business community, the chamber encourages small- and medium-size businesses to leverage association-based insurance as a viable tool, but to do so thoughtfully and ensure you know what is covered, what’s excluded and whether the group meets the needs of your specific business. Specifically, local businesses should:
- Work with a trusted local health insurance broker with a strong track record in the Dayton market.
- Compare association plan benefit structures carefully against your current plans.
- Think about long-term employee needs and retention.
The recent local business movement toward association-based health insurance offers a lifeline for many businesses in Dayton that have struggled under the conventional insurance model.
It’s my hope that by working together - the Dayton Area Chamber of Commerce, our local insurance brokers, and employers - we can build solutions that allow Dayton’s business community to thrive while giving their employees access to affordable and dependable health coverage.
Chris Kershner is the Dayton Area Chamber of Commerce president and CEO.