Why Small Businesses Can't Provide Health Insurance
According to a 2010 Rand Institute study, approximately 60.4 percent of employees at small businesses have access to health insurance coverage. A number of factors contribute to the lack of coverage for the remaining 39.6 percent.
Other People Are Reading
-
Costs
-
Health care premiums have been rising faster than the rate of inflation for years. According to the 2010 Employer Health Benefits Survey from the Kaiser Family Foundation, the average family health insurance premium is 114 percent higher than it was in 2000, making coverage difficult for small businesses.
State Law
-
The individual states have rules defining how many employees must be present to form a group for the purpose of applying for group health insurance. If the law requires four people to form a group, the company only has three employees, group health insurance is not an option.
-
Lack of enrollment
-
To form a group, a minimum number of eligible employees must agree to enroll in a group health insurance plan. If employees receive coverage through a spouse's plan and don't enroll, it could count against the company's enrollment numbers and prohibit enrollment in a group insurance plan.
Recent Trends
-
The Kaiser Family Foundation reports a 13 percent increase in the past year in the number of small businesses with three to nine employees offering health coverage.
-
References
Resources
- Photo Credit syringe-medical image by JASON WINTER from Fotolia.com
