04/04/2008
Contact: Mike Diegel, 202-314-2004
WASHINGTON, D.C.--Todd Stottlemyer, president and CEO of the National Federation of Independent Business, the nation's leading small business association, issued the following statement on rising small business healthcare costs after the Kauffman-RAND Institute for Entrepreneurship Public Policy announced results from a study that examined the impact of rising healthcare costs on small business.
"These findings reinforce what NFIB has been advocating for on behalf of our members for more than two decades—healthcare costs must be contained to safeguard the viability of small business.
"Annual increases in healthcare premiums consume a higher percentage of a business’ payroll now more than ever, far outpacing wage increases. As a result, many small business owners face a tough decision: provide a raise to their employees or offer healthcare coverage. The RAND study found half of all small businesses that offer health insurance spent more than 10 percent of their payroll on this benefit, further illustrating why healthcare costs have been the number one concern for small business owners and their employees for the past twenty years.
"To address the problem of rising small business healthcare costs, NFIB has launched Solutions Start Here, our largest and most aggressive healthcare campaign to date. As part of this campaign, we are hosting Fix-it Forums in nine cities across the country to shed light on how healthcare costs are impacting small business owners and their employees. We are also hosting a series of Health Reform Forums that bring together policymakers and health experts to discuss what policy options could be most effective in forming legislation that will increase affordability, enhance coverage and maintain quality.
"At NFIB, we are committed to addressing healthcare costs head-on with policymakers and the presidential candidates to ensure the unique needs of small businesses are considered in any proposed healthcare legislation. Because when healthcare is fixed for small business, it’s fixed for America.”
The Kauffman-RAND Institute report, authored by Drs. Susan M. Gates and Christine Eibner, found that small firms with fewer than 25 employees have been significantly impacted by increases in healthcare costs, with a 43.5 percent increase in the median cost of coverage between 2000 and 2005. This impact is even greater on firms with fewer than 11 employees, experiencing a 53 percent increase over the same time period. Not only are healthcare costs steadily rising for small businesses, Gates’ and Eibner’s research also found the quality of coverage is not consistent with that of larger firms.
For more information about Solutions Start Here or NFIB, please contact Mike Diegel at 202-314-2004 or michael.diegel@nfib.org.
Solutions Start Here is a campaign developed and led by NFIB and its members as the small business platform for healthcare reform. By working to engage and educate policymakers about the unique healthcare issues faced by small business, Solutions Start Here will drive and integrate the concerns and needs of America’s small business community into the national health reform debate. Because when healthcare is fixed for small business, it’s fixed for America. For more information visit http://www.fixedforamerica.com
NFIB is the nation’s leading small business association, with offices in Washington, D.C., and all 50 state capitals. Founded in 1943 as a nonprofit, nonpartisan organization, NFIB gives small and independent business owners a voice in shaping the public policy issues that affect their business. NFIB’s powerful network of grassroots activists sends their views directly to state and federal lawmakers through our unique member-only ballot, thus playing a critical role in supporting America’s free enterprise system.
NFIB’s mission is to promote and protect the right of our members to own, operate and grow their businesses. More information about NFIB is available online at http://www.NFIB.com/newsroom.
