Navigation Links
Small Firms Shoulder Burden of Increasing Health Costs

But spike in plan fees did not cause employers to abandon benefits, study finds

FRIDAY, April 4 (HealthDay News) -- The economic burden of providing health insurance for employees increased more for small U.S. businesses than for larger businesses from 2000 to 2005, but most small businesses have not stopped offering the benefit, a new study finds.

The study, released Friday by the Rand Corp., of more than 2,500 small, medium and large companies found that small businesses (fewer than 25 employees) were hit with a 30 percent increase in the cost of providing health insurance. Their share of offering employee health insurance increased from an average of 8.4 percent of their payroll in 2000 to 10.8 percent of payroll by 2005.

Health insurance costs increased 16 percent for companies with 25 to 49 employees, and increased 25 percent for businesses with 50 to 99 workers.

While small companies were less likely than large businesses to provide health insurance, the small businesses that did offer the benefit were no more likely than large businesses to stop providing the benefit.

"Perhaps these small businesses -- and ultimately, their employees -- were willing to accept the burden of rising health insurance costs, even if it meant giving up wage increases," study author Christine Eibner, an associate economist at Rand, said in a prepared statement. "What we don't know is whether small companies and their employees will continue to make this tradeoff."

She did find that small businesses tended to offer slightly lower-quality health plans than larger companies, and that larger businesses were more likely to offer drug and dental coverage. In addition, non-HMO plans offered by large employers tended to have lower deductibles and coinsurance rates.

At a small company, an average worker would spend 1.9 percent of annual earnings on out-of-pocket health expenses, compared with 1.3 percent for an average employee at a company with more than 100 workers.

The Rand Corp. is nonprofit research organization.

More information

The U.S. Department of Labor has more about employer-based health plans.

-- Robert Preidt

SOURCE: Rand Corp., news release, April 4, 2008

Copyright©2008 ScoutNews,LLC.
All rights reserved  

Related medicine news :

1. Study finds economic burden of health insurance increasing for small employers
2. Small Brain Lesions More Common Than Thought in Those Over 60
3. Small Firm Workers Pick Large Firm Benefits
4. Small Business Health Care Survey Points to Need for Reform
5. Guardian Expands Dental Benefit Options Helps Small Business Owners Lower Insurance Cost
6. Smart Balance Presented at Citi Small/Midcap Conference
7. Medicare Bidding Program for Durable Medical Equipment May Harm Small Businesses and Decrease Patient Access to Care, Say 137 Members of Congress
8. Smart Balance to Webcast Presentation at Citi Small/Midcap Conference
9. NBTY to Web Cast Presentation at Citigroup Small and Mid-Cap Conference
10. Edwards Lifesciences to Present at the Citi 5th Annual Small and Mid-Cap Conference
11. LightAir Cleans the Air From the Smallest and Most Dangerous Particles Without Generating Ozone
Post Your Comments:
Related Image:
Small Firms Shoulder Burden of Increasing Health Costs
(Date:11/24/2015)... M.D. (PRWEB) , ... November 24, 2015 , ... ... new award for its exceptional customer service: the TrustDale certification. The award recognizes ... The Baltimore stone honing , tile and grout, and hard surface restoration ...
(Date:11/24/2015)... ... November 24, 2015 , ... Autism Speaks, the world’s leading ... driven by social media and the generosity of people around the world. On December ... media networks to give – and share the personal stories behind those gifts. ...
(Date:11/24/2015)... ... ... Peck’s mother wondered if she was a descendant of Samuel Fuller, a passenger on the ... for information, Don and his aunt discovered that she was not, in fact, related to ... Don’s father who was descended from not one, but four passengers on the famed ship ...
(Date:11/24/2015)... ... 2015 , ... Dehydration, defined as a loss of body water content, can ... sun, and heat stroke and death will quickly follow. A normal human body is ... cell, system and structure requires water to function properly. Kleyne, who believes that medical ...
(Date:11/24/2015)... CA (PRWEB) , ... November 24, 2015 , ... ... College District , the only authorized OSHA Training Institute Education Center in Northern ... injuries during the holiday season’s major sales events. As the volume of ...
Breaking Medicine News(10 mins):
(Date:11/24/2015)... and BERN, Switzerland , ... the ARTORG Center for Biomedical Engineering Research of the ... the Division of Endocrinology, Diabetes and Clinical Nutrition of ... the start of an exclusive collaboration to develop a ... algorithm for the personalised delivery of insulin for diabetic ...
(Date:11/24/2015)... st  Scientific Assembly and Annual Meeting of the Radiological Society ... Chicago on Nov-29 th through Dec-4 ...  Scientific Assembly and Annual Meeting of the Radiological Society of ... Chicago on Nov-29 th through Dec-4 th , ... present its revolutionary whole body CZT digital SPECT/CT solution at the ...
(Date:11/24/2015)... , November 24, 2015 The uptake of recently ... be a key driver of market growth to 2021, ... approved and pipeline premium products for Type 1 Diabetes Mellitus (T1DM), will ... says GBI Research . --> The uptake of ... will be a key driver of market growth to 2021, ...
Breaking Medicine Technology: