Small Business Health Benefit Offerings Have Increased

More small businesses are now providing health insurance coverage to their employees compared to last year.

Updated on Sept. 24, 2026 in Employment

Bold flat-color editorial illustration of a medical diagnostic tool on a flat, solid surface, representing small business health benefit trends. — The percentage of U.S. small businesses offering health insurance coverage to staff rose to 46% this year, up from 41% previously. AI Illustration. Upload story photo >

Live Poll

Do you feel confident about the current economic conditions for your business?

The U.S. Small Business Index reports that 46% of small businesses now offer health insurance to staff. This figure marks an increase from the 41% reported during the same period one year prior.

Why it matters

The Small Business Index tracks how owners navigate hiring and investment challenges, offering peers insight into current benefit trends. As business owners adjust compensation strategies, the rise in coverage highlights a shift in how firms manage their workforce competition.

Currently, 46% of small businesses report offering health insurance to their employees, up from 41% in September 2025. Justworks, which supports over 15,000 small business customers, contributed this data to the index.

The players

Justworks

A company providing payroll and HR support services for more than 15,000 small business customers.

U.S. Chamber of Commerce

The national business federation that partners on the Small Business Index to track economic trends.

The details

The Small Business Index tracks key operational choices including investment and hiring decisions across the country. Justworks provides perspectives from its own customer base to help identify broader economic trends regarding how businesses structure their benefits packages.

2017: The Small Business Index publication began.
September 2025: The health insurance offer rate was 41%.
September 30, 2026: Expected release date for the third quarter 2026 report.

Money Landscape

The Small Business Index has tracked owner sentiment and economic conditions since 2017. The current rise in benefits offerings follows a multi-year trend of small firms adapting their compensation structures to remain competitive.

If you are a business owner or an employee, monitor whether benefit packages in your sector are expanding as firms compete for talent. Decisions regarding insurance offerings can significantly impact your total compensation package, so consult with a financial professional about your options.

The takeaway

Small business owners are increasingly prioritizing health insurance as a central component of their total compensation strategy. Keep an eye on the Q3 2026 report release at the end of September to track whether this upward trend in benefit offerings continues across the industry.