Small firms hurt by health costs

Health care costs have increased more than 16 percent for 44 percent of small-business owners surveyed by the National Federation of Independent Businesses.

According to an NFIB news release, nearly 41 percent of members surveyed do not offer employees health insurance.

Brad Jones, NFIB/Missouri state director, said, "With a possible economic slowdown on the horizon, what small-business owners do not need is another round of double-digit increases in their health insurance premiums. Small businesses' doors cannot stay open if (their) owners cannot stay competitive with larger companies."

Nearly 7 percent of the owners surveyed indicated they had to drop coverage because of increasing costs; and 13 percent tried switching carriers to curb costs. Slightly more than 71 percent said they absorbed the increased costs of health care insurance, but that this resulted in higher prices for foods and services.

"Some small-business owners have passed on the cost to their employees, but the vast majority tried to handle the situation by passing the cost on to consumers," Jones said. "If health care insurance keeps increasing by thousands of dollars every year, I'm not sure what our small-business owners will do."

Jones said NFIB strongly supports the creation of Associated Health Plans, which would allow small businesses to band together across state lines to purchase health care through a trade or professional association.