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FAQ / What research exists on the cost and availability of health insurance?


For many years, the cost and availability of health insurance
has been a top small business concern. Aspects of insurance
that drive small business concerns are premium increases and
administrative costs. Advocacy research shows that: (1) insurers
of small health plans have higher administrative expenses
than those that insure larger group plans, and (2) employees at
small fi rms are less likely to have coverage than the employees
of larger entities.
These results are confi rmed by the Kaiser Family Foundation,
which also fi nds that fi rm size is an important indicator
of whether a fi rm offers health insurance. This survey shows
that about half of businesses with fewer than 10 workers offer
health benefi ts to their employees. The ratio grows to about
three-fourths for fi rms with 10–24 employees, to almost 90
percent for fi rms with 25–49 employees, and to 98 percent for
fi rms with 200 employees or more. Two-thirds of workers in
fi rms of all sizes take health insurance coverage if offered.
Source: National Federation of Independent Business; Kaiser Family Foundation;
Advocacy-funded research by Rose C. Chu and Gordon R. Trapnell,
2003 (www.sba.gov/advo/research/rs224tot.pdf); Joel Popkin and Company,
2005 (www.sba.gov/advo/research/rs262tot.pdf); and Econometrica,
Inc., 2007 (www.sba.gov/advo/research/rs295tot.pdf).

 




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