Helping Small Businesses Provide Healthcare Coverage

Hans J. Dykxhoorn, PhD, CPA, and Kathleen E. Sinning, PhD

According to the Office of Advocacy at the U.S. Small Business Administration, the cost of health insurance has been a top concern of small businesses for many years. A study conducted by the Kaiser Family Foundation and the Health Research & Educational Trust (HRET) in 2009 determined that the average annual premiums for employer-sponsored health insurance were $4,824 for single coverage and $13,375 for family coverage (“Employer Health Benefits, 2009 Summary of Findings,” http://ehbs.kff.org/ pdf/2009/7937.pdf). Those costs were expected to increase by at least 9% in 2010 (PricewaterhouseCoopers' Health Research Institute, “Behind the Numbers: Medical Cost Trends for 2010,” www.pwc.com/ us/en/healthcare/publications/behind-the-numbers-medical-cost-trends-for-2010.jhtml). The Kaiser/HRET report also found that, on average, 60% of employers offered health insurance benefits in 2009, although only 46% of firms with three to nine employees and 72% of companies with 10 to 24 employees offered coverage.