Benefits February 23, 2005

More than a Third of Small Firms Pay Whole Health Premiums

February 23, 2005 (PLANSPONSOR.com) - Two-thirds of small businesses provide health insurance benefits for their employees according to a new study.
Reported by

A news release said the poll from the International Profit Associates Small Business Research Board (IPA SBRB) found that a third don’t offer health coverage. Among small businesses offering health insurance, 34% pay the entire premium while 36% pay more than half and nearly a third (29%) pay up to half of the premium.


Despite concern about escalating health care costs, 88% of those in the IPA SBRB poll said they would maintain or increase the amount they are contributing.

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Looking at the whole company, the cost of such coverage is the second biggest factor affecting their firms with nearly one in five (18%) saying health coverage expenses were at the top of their list. Just over a third (32%) cited general economic factors. Other answers included:

  • finding quality employees – 16%
  • ability to obtain capital – 10%
  • taxes – 8%
  • interest rates – 6%
  • foreign competition – 4%
  • government regulation – 4%

More than 175 small businesses owners and senior managers participated in this IPA SBRB poll. The voluntary survey was conducted via phone, e-mail and fax. International Profit Associates, Inc. (IPA) is the largest privately-held provider of management consulting services to small and medium sized businesses. More information is at http://www.ipasbrb.com .

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