LANSING ? The continuing high cost of health insurance has led to fewer small business owners carrying a company health insurance plan, according to the latest Small Business Association of Michigan Barometer survey released Thursday.
The survey finds that 83 percent of small businesses have a health insurance plan at their companies. That?s down from the 90 percent who reported having coverage in the winter of 2003.
Those who continue to offer health insurance are using a variety of strategies to cope with the cost. Many of those strategies have a direct impact on their employees, including changing the plan coverage of prescriptions, increasing the deductibles or co payments, and increasing the employee contribution to the premium payment.
Furthermore, 16 percent of small business owners plan to hire fewer employees. Twelve percent plan to lower employee wages or limit pay increases. Four percent plan to lay off employees.
The survey finds no clear consensus among small business owners on the most desirable policy options to control health insurance costs. Nearly one-third did not know or did not have an opinion. Twenty percent favored health savings accounts (HSAs).
The quarterly Barometer survey is sponsored by SBAM with the participation and support of the Center for Urban Studies of Wayne State University. The survey of 200 small business owners was conducted by Public Policy Associates of Lansing during Nov. 2004 ? Jan. 2005.
SBAM?s Health Care Committee has issued an updated report of health insurance policy recommendations for 2005. It is available for download from SBAM?s website at SBAM.Org
