Small Businesses Lack Affordable Health Care Options

The survey found 92.5% of The Online 401(k)’s small business clients (with an average of 17 employees) offer a health insurance plan through their company. Of those, 35% of small businesses offer a plan that is 100% paid for by the employer, 1% have a plan that is 100% paid for by employees, and 64% offer a plan that is paid for by both the employer and the employee, according to a press release.

The majority of small business owners (53%) report that their plans are expensive. Thirty-five percent labeled their plans “fairly priced,” while only 12% said their plan is “very affordable.”

When asked about their interest in more affordable health care options, 82% of respondents indicated they are interested or may be interested in Consumer-Driven Health Care (CDHC) plans. Only 29% of small-business owners were familiar with the term Health Savings Account (HSA) and currently use one, 58% were familiar but do not use one, and 13% were not familiar with it.

The Online 401(k) is a provider of retirement solutions for small businesses. Twenty-four percent of The Online 401(k)’s clients responded to the Benefits@Work survey.