10/10/2008
Health plan premiums have continued to rise and small business workers are being hit the hardest with increased deductibles this year, according to a survey released by the Kaiser Family Foundation and the Health Research and Educational Trust.
According to the 2008 Employer Health Benefits Survey, yearly premiums for family healthcare coverage have risen 5 percent this year—but have been more than doubled since 1999—to $12,680. Employees are paying an average of $3,354 out-of-pocket, also more than twice what they paid nine years ago.
Healthcare has been a top priority of NFIB for more than a decade, and we know it's not an issue that is going to be easily solved. We have fought for reform and made recommendations about what a solution should look like (link to principles of healthcare reform), and will continue to work with Congress to finally bring access to quality and affordable healthcare to the small business sector.
Small businesses have been hit hard with escalating costs, and many have been forced to pass more and more of the burden to their employees in order to continue offering health insurance at all. The Kaiser survey shows that the employee share of costs at small businesses increased this year: The number of insureds with deductibles of at least $1,000 has grown to 18 percent, up from 12 percent last year. The survey also shows that employees of small businesses with three to 199 workers have been hit the hardest with rising deductibles—35 percent of these employees now face deductibles of at least $1,000, up from 21 percent in 2007.
The survey also reports a 3 percent increase from last year in high-deductible health plans like health savings accounts and health reimbursement accounts, noting the growth occurred mainly in small businesses employing three to 199 workers. Premiums for these types of plans tend to be lower than traditional health plans, which could explain the increase, as health insurance premiums continue to rise each year. Additionally, 48 percent of all small businesses with three to 199 employees not offering health benefits list high premiums as the cause.
One of the most critical steps to passing healthcare reform is electing a president who values its importance. So as you make your decision regarding who gets your vote this November, be sure to visit NFIB.com's Presidential Election Center to review the candidates' stances on healthcare reform and find out how they plan to help you, the small business owner.
