Insurance costs out of reach for business owners
Small business owners are struggling to afford health care insurance, and their employees are increasingly having to go without, according to a nationwide survey.
In Illinois, four out of five business owners surveyed said government should have greater oversight of insurance companies. More than half also supported providing a public alternative to private health coverage.
The survey of 1,200 small businesses in 12 states was conducted by the Main Street Alliance, a coalition of small business owners that supports public health care.
The survey comes as President-elect Barack Obama has proposed making health-care reform a priority and as activists and insurance groups are positioning themselves to influence potential legislation.
The survey found most small business owners want to provide health-care coverage as a way to keep good employees, but many can't afford it.
Two-thirds did not provide health insurance for their workers. Of those who did, most had either raised the costs or cut back on services. Twelve percent dropped their insurance completely.
Those who still have insurance are afraid they're one illness away from not being able to afford it. That's the fear of Cindy and Steve Moylan, a husband-and-wife team that owns IDEA Design/Build, a home remodeling business in Libertyville.
Since Steve suffered a detached retina in 2007, insurance premiums for the two of them have increased by $500 a month to $1,920. With deductibles and out-of-pocket expenses, they spend $34,000 a year on health care.
"It's outrageous," Cindy said. "I'm open to public or private health coverage - whatever works."
The Main Street Alliance is not the first small-business group to say something must be done about the issue. The National Federation of Small Business identifies health insurance cost as the number one problem facing small business for the past 20 years.
The Illinois Chamber of Commerce, which represents businesses of all sizes, joins the federation in supporting the Small Business Health Options Program (SHOP). This federal legislation would let small business owners join a state pool to buy insurance and receive tax credits in return.
In response to such proposals, the insurance industry has come up with a plan that builds on the current employer-based system, but proposes providing universal coverage, even for pre-existing conditions.
At the same time, the proposal by America's Health Insurance Plans calls for controlling costs by eliminating state mandates, such as Illinois' recent laws that require coverage for mental health and children with autism.
"We recognize rising costs are making it difficult for small business to afford coverage," spokesman Robert Zirkelbach said. "We are offering solutions to address that issue and make sure everybody has access to coverage."
Whether the solution is public or private insurance, some business owners say they can't keep going as things are.
Arlington Heights resident Rosa Yaker, president of Vertical Blinds Factory in Niles, offers health insurance, but she said only 6 of 15 workers can afford to pay for it.
She said she would enroll in a public program, but added, "It shouldn't be shoved down our throats. We should have an option."
For more information, see the Main Street Alliance on the Web at mainstreetalliance.org, and find the insurance industry plan at americanhealth solution.org.
Small business survey key findings
A Main Street Alliance survey of nearly 1,200 small businesses in 12 states found:
•Two-thirds of small employers don't offer health-care coverage to employees - but three-fourths were willing to contribute if it was affordable.
•Most businesses had raised costs, cut coverage or dropped insurance completely.
•Fifty-nine percent supported public insurance rather than private market insurance.
•Seventy percent think government should play a strong role in guaranteeing access to quality, affordable health care.
Source: Main Street Alliance