Study Examines Economic Burden of Providing Health Care on Businesses

"The Economic Burden of Providing Health Insurance: How Much Worse Off Are Small Firms?" RAND: The study found that the economic burden of providing health insurance to employees increased more for small businesses than for large ones from 2000 to 2005, but that the spike did not cause a significant number of small-business employers to eliminate health coverage. According to the data, typical businesses offering health insurance spent 7% and 10% of their payrolls on coverage, but small companies saw their share grow from an average of 8.4% in 2000 to 10.8% of payrolls by 2005, an increase of nearly 30%. The growth rate was higher for larger companies. Based on surveys from 2,500 small, medium and large companies, the study also explores trends in the economic burden of providing health care, the distribution of the burden for small and large businesses, and the quality of the health plans offered (RAND release, 4/4).