Insurance Rates: 5 States You Don’t Want to Start A Business In

We can’t tell you where to live, but if you’re looking into starting a business somewhere, it may be wise to look into the average insurance rate for each state. The average premium can give you the scope. Group health insurance is a benefit you can’t afford to overlook when it comes to your benefits package. Prospective employees will flock to you when you offer this because when you offer health insurance, you offer peace of mind.

open map of the continental united states
Your location can change your insurance rate a great deal. Make sure to do proper research.

Each state has a different premium, and getting this information can hint at your prospective insurance costs should you operate there. Health insurance costs are growing with a 214% rise in premiums for single coverage and 239% for family. Of course, EZ.Insure’s agents will have a comprehensive view of your specific situation, but let’s look at the most expensive states to live in.

Why These States Have the Highest Premiums (Without Subsidy)

Wyoming at $865

Some good news here! Wyoming actually saw relief from premium increases this year for their insurance rate. However, this was after a 48% rise in 2018. That’s quite an incline. While this explains the higher cost now, it also gives hope for the future that this number could drop on the list.

Wyoming has been fighting for first place in “Who Is the Most Expensive” between Iowa and Alaska. Differing costs in plans fluctuate as cost-sharing reductions are put mostly on medium rate plans. This hampers attempts to curb this by government programs because their influence usually falls to the lower rate plans. 

In either case, Wyoming continues to hold a top-3 spot in the most expensive zone, so not the best state for your company to start. It also doesn’t seem to be getting any less expensive. 

Nebraska $838

nebraska sunset over a field with a fence
It’s beautiful, but Nebraska seems to be an expensive place to live with it comes to insurance.

In Nebraska’s exchange, there is one insurer that has a complete monopoly on the market: Medica. This isn’t a recent thing either. A monopoly means they can charge whatever they’d like, and those that want insurance must buy it.

2019 showed only a 2.2% increase across the Medica board. It seems small, but because the insurance rate is already so high, any increase is only going to increase pressure on the market and business owners, meaning you.

Iowa at $762

The same problem with Oklahoma carries over to Iowa. While over half of Iowan residents receive health insurance through an employer, the other half do through government assistance. This is good for Medicare and employers that can handle the payments for group insurance. However, for those that cannot, it would be a good idea to take a second look before coming here. 

Studies show that businesses in Iowa are going through financial hardship due to these drastic increases in premiums. Percentages of this increase jump wildly through the years with a 19% rise in 2002 to a softer 8.4% rise in 2018. While the rising slows, it should still caution a prospective business owner.

Alaska at $702

This state has a disproportionate population size, and the vast majority of Alaskans live away from the booming cities and markets. What this means is, a lot of people are in remote areas and the road systems don’t reach all of them. This raises the insurance rate because of the danger associated with rural areas.

Coupled with these is a limited amount of medical service providers. If you need a specialist, you may have to travel quite a while to see them, even out of state. These hamper the medical field with more costs and increase the amount the professionals (or specialists) are paid. Altogether, it nets a large increase for your company if you expect to operate here.

Oklahoma at $696

After Alaska (and Texas, not on this list), Oklahoma has a high uninsured rate. This is 13.9% of the populace. With so many people uninsured, it doesn’t leave a good impression for your business here.

Under the Affordable Care Act, this state did not opt into federal funds for expanding health care. This left thousands of people without access. These people continue to go to hospitals when they are sick, putting a strain on health providers.

What does this mean for you? While the insurance rate may be high for your business, offering health care may be an even more attractive choice for a prospective Oklahoma employee. You’ll have to decide whether or not it’s a good idea for your business.

money and medication from health insurance
Medication is needed everywhere. Health insurance is not something to take lightly.

When it comes to your business, your insurance rate is important to your bottom line. Most insurance is required. Others aren’t, but they’re still good to have. These states here show with their health insurance premiums what you can expect in the group world. Have any more questions?

EZ.Insure is there to make sure your business is covered. Your agent will answer any questions you have, compare different plans for you, and even sign you up when you’re ready, free of charge and without having to worry about being hounded by endless calls. To get started simply enter your zip code in the bar above, or you can speak to an agent by emailing, or calling 888-615-4893. EZ.Insure makes the entire process easy, and quick.

About The Author:
Cassandra Love

With over a decade of helpful content experience Cassandra has dedicated her career to making sure people have access to relevant, easy to understand, and valuable information. After realizing a huge knowledge gap Cassandra spent years researching and working with health insurance companies to create accessible guides and articles to walk anyone through every aspect of the insurance process.

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