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Many small employers are droppin ...

Posted Nov 10 2008 4:18pm

Many small employers are dropping health insurance as a benefit, simply due to cost.  Many have changed the type of policies, brought in bigger co-pays, higher payment towards the premiums from the employees too, but when all of this is done and exhausted, what’s the next step when you have narrow profit margins or worse yet are operating in the red or on the borderline?   Small companies do not have the ability to spread the cost out over a large group as do larger corporations, thus when it comes to keeping the doors open or dropping insurance coverage, well you might guess what decision might be made.  Also, at what point does the insurance become not affordable for the employees at the premiums charged

That happens quite a bit even with big companies, banks, grocery stores, etc. too, the insurance is available, but employees can’t afford it.  So what is the solution?  The numbers keep dropping for the small businesses who can afford employee health benefits and it costs a large percentage more than some of the plans offered by large employers.  BD  

Not only does the cost of insurance tend to be a bigger burden for a smaller business, but Jon R. Gabel, a health policy researcher at the National Opinion Research Center at the University of Chicago, estimates that small firms pay 18 percent more for the same insurance than big companies.

Small Business Is Latest Focus in Health Fight - NYTimes.com

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