Small business jammed up on health insurance even worse than big business

Neil Adler writes in the Washington Business Journal:

“Diagnosis: Critical, costly; Health insurance pricey, choices skimpy for small employers forced to cut costs”

Insurance is tough to come by for small businesses nationwide, according to a recent study by the Commonwealth Fund (www.cmwf.org), a private foundation that supports independent research on health and social issues and makes grants to improve health care practice and policy.

The study finds small businesses proportionally pay far more in premiums and deductibles than large employers that have access to better plans because of their size.

Premiums jumped almost 16 percent for firms of three to 199 workers in 2003, but rose only 13 percent for firms with 200 or more. Small firms not only get less value than their large counterparts when they provide benefits to their workers, but also face greater financial hazards in doing so, according to the survey. . . . Read more

No great revelations in this story, but a couple of good real-life examples of small businesses forced to pay through the nose — or forego insurance for employees.