LANSING, Mich. (May 26, 2026) — No matter the size of their employer, every worker deserves to have healthcare they can afford. Driven by that belief, Sen. Kevin Hertel (D-St. Clair Shores) introduced another piece of Michigan Senate Democrats’ Health Care You Can Afford agenda. This new legislation would allow for the creation of association health plans for small businesses, helping reduce insurance costs for business owners and their employees while expanding access to quality coverage.
As small businesses face rising costs and fewer customers in today’s uncertain economic climate, many are struggling just to keep their doors open,” said Sen. Hertel, who recently held a roundtable discussion with local small business owners, where they shared the number of challenges they’re facing, including the cost of healthcare. “And when small businesses are stretched thin, it becomes even harder for them to be able to provide benefits, including quality health coverage for their workers.”
Small businesses are the backbone of the state’s economy, yet when it comes to providing affordable health insurance for their employees, they often face significant challenges. For four decades, the cost of health insurance has remained the number one concern for small businesses — and as costs have increased upwards of 23% over the last few years, this is becoming even more challenging and unsustainable.
Unlike larger corporations, small businesses often lack the leverage needed to negotiate lower insurance costs and frequently face higher administrative expenses. However, under Senate Bill 1011, these businesses would have the ability to band together, pool resources, and put together insurance options that reduce costs for themselves and their staff.
“As we work to build a healthier Michigan and a stronger economy, association health plans can help level the playing field — giving small businesses the ability to lower costs and make health care more accessible for working families,” said Sen. Hertel.
To learn more about Senate Democrats’ Health Care You Can Afford agenda, click here.