USA Today Looks At Challenges Small Businesses Face In Providing Health Insurance To Workers

Main Category: Health Insurance / Medical Insurance
Article Date: 21 Apr 2006 - 8:00 PDT

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USA Today on Wednesday examined how small businesses are "driven crazy by soaring employee health costs, an expense that surveys show has become the biggest headache and obstacle to growth," and how "a growing army of consultants and benefits experts are promoting new health plans and services aimed at owners desperate to rein in costs." For example, some health insurers have begun to reduce premium rates for small businesses that offer wellness programs to employees. In addition, many small businesses have begun to contract with professional employer organizations, which charge an annual fee to manage employee health benefits and other personnel issues. PEOs combine employee groups into larger pools to reduce health care costs for small businesses. Some small businesses also have begun to offer high-deductible health plans with health savings accounts or health reimbursement arrangements to reduce health care costs. Ivy Silver, founder of Commonwealth Consulting Group, added that small businesses "have to use some of the same techniques large employers are using" to reduce health care costs (Hopkins, USA Today, 4/19).

"Reprinted with permission from http://www.kaisernetwork.org. You can view the entire Kaiser Daily Health Policy Report, search the archives, or sign up for email delivery at http://www.kaisernetwork.org/dailyreports/healthpolicy. The Kaiser Daily Health Policy Report is published for kaisernetwork.org, a free service of The Henry J. Kaiser Family Foundation . © 2005 Advisory Board Company and Kaiser Family Foundation. All rights reserved.

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