About 48 percent of small-business owners offer healthcare coverage to their
employees, according to a survey by the National Federation of Independent Business.
Sixty-five percent of those not offering healthcare coverage said cost was the
major reason.
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Download Now "The reasons both for offering coverage and for declining to offer coverage
reflect sound business decisions, involving issues of cost, turnover and employee
expectations," says University of Alabama at Birmingham professor and author
of the survey Michael Morrisey. "Small employers have always been particularly
vulnerable to premium increases and few have the human resources to thoroughly
investigate the coverage options available."
The majority of small businesses (55 percent) offering healthcare insurance
required no employee premium contributions for single coverage; one-third did
not require them for family coverage, according to the survey.
The average small business health insurance plan cost $402 per employee per
month for single coverage and $732 per month for family coverage.
National Federation of Independent Business surveyed a national sample of 750
employers. Employers' businesses ranged from one to 250 employees.