Health insurance troubles small businesses

Small business owners in the US are struggling to provide health insurance for their staff and do not feel confident in determining the health insurance that best fits their employees’ needs, according to a new survey by the National Association of Insurance Commissioners (NAIC). The NAIC said its findings highlight the need for more insurance education, even as the debate over national health care reform continues around the country. In the NAIC survey – conducted in July 2009 among a participant sample of 500 small business decision makers – 64% of small business owners responded that they were not confident in choosing a health insurance policy that fits their budgets and their employees’ needs. One-third admitted that they cannot afford to provide health insurance to their employees. Additionally, the study found a clear gap in understanding the fiscal responsibilities associated with offering health insurance. Of the small business owners surveyed, 60% said they were not confident they understood the tax implications of paying for a portion of their employees’ health insurance premiums. Only 27% said they understood all the factors that can affect their small group health premiums.