Decline in Employer Sponsored Health Insurance Traced to New Small-Business Owners

Source: National Federation of Independent Business

From press release:
The primary reason for the decline in the number of small businesses providing health insurance appears to be that owners of new firms are reluctant to introduce health benefits, according to a National Federation of Independent Business Small-Business Poll released today. The poll on purchasing health insurance found that 52 percent of small-business owners do not offer either employee health insurance or an insurance purchase subsidy.

Excluding those who switch insurers or go out of business, very few small employers drop health insurance benefits all together, about 1 – 2 percent of the population annually.

For the 47 percent of small employers who do offer some type of employee health benefit, 36 percent offer insurance to all or most full-time employees, 5 percent offer insurance to some or a few full-time employees, and 6 percent offer premium reimbursement to employees who purchase health insurance on their own.

Purchasing Health Insurance – NFIB National Small-Business Poll (PDF; 452 KB)

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