Small businesses experience double-digit cost increases

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Health insurance costs continue to rise at a double-digit clip for Missouri small-business owners, according to a recent survey conducted by the National Federation of Independent Business.|ret||ret||tab|

The survey of the organization's 12,500 Members found that most small-business owners (63 percent) offer health insurance to their employees. Of those who provide health benefits, 41 percent had premium increases of more than 16 percent for 2000. |ret||ret||tab|

A majority (72 percent) of those with premium increases absorbed the additional costs, while 20 percent were forced to switch carriers or drop coverage altogether, NFIB stated in a news release.|ret||ret||tab|

"Missouri small-business owners are at a breaking point," said Brad Jones, NFIB state director, in a press release. "Skyrocketing health care costs are forcing business owners to water down their coverage or add employees to the ranks of the uninsured. NFIB strongly urges the members of the Missouri House to consider small-business owners and their employees when they take up health-insurance reform legislation." |ret||ret||tab|

Scott George, vice chair of the Small Business Administration's Region VII Small Business Regulatory Fairness Program and past chair of the Missouri NFIB Leadership Council, said he's experienced the harsh realities of health care costs in his own small business, Mid-America Dental & Hearing Center in Mt. Vernon. |ret||ret||tab|

"My own increase this year was 18 percent," George said, which was less than the 22 percent and 33 percent hikes of the last two years. |ret||ret||tab|

His costs have increased "more than 90 percent over three years when the cost of living went up only 10 percent. Every year, at least one employee drops coverage because they can't afford it," he said.|ret||ret||tab|

George said the average increase in health insurance premiums for small businesses has far execeeded an average increase of 5 percent to 7 percent for big businesses.|ret||ret||tab|

Jones said accessibility and cost are the two most critical health care problems facing small firms and their employees. |ret||ret||tab|

"NFIB urges the legislature to pass legislation which would keep costly mandates in check and provide tax incentives to help small firms cover the costs of health care premiums," Jones said. |ret||ret||tab|

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