The report looks at the financial difficulties small businesses face when providing health insurance to their employees. According to the report, employees of small businesses were 50% more likely to lose coverage as workers at large businesses. Half of workers in small firms that do not offer health benefits remain uninsured.
In addition, premiums for employer-based health insurance have more than doubled since 2000, rising three times faster than wages. As a result, fewer small businesses provide coverage for their employees. In 2000, 57% of firms employing less than 10 workers provided coverage. In 2009, 46% of similar-sized firms provided coverage.
In one national survey, nearly three-quarters of small businesses that did not offer benefits cited high premiums as the reason, and on average small businesses pay up to 18% more than large firms for the same health insurance policy. This is due in part to high broker fees, which can be up to 10% of premiums, and health plan administrative costs that are three to four times those in the large group market.
The complete report is available at www.HealthReform.gov.