A health care research center based in Michigan conducted a state-wide survey, examining employer-sponsored health care coverage.
The survey found that fewer small businesses (those with fewer than 50 employees) are offering health insurance to their employees, dropping from 40 percent in 2013 to 33 percent in 2014.
The trend is mirrored in medium-sized employers (50-99 employees), with a drop from 93 percent offering health coverage in 2013 to 84 percent in 2014.
The survey also shows that the cost of health care for small businesses in Michigan increased by 2.8 percent from 2009 to 2014. This rise in health care costs is also seen across the country, although at a higher rate. The Kaiser Family Foundation reports that premium costs for health care have increased 4.2 percent nationally.
To determine the best financial solution, business owners in the state are weighing the options of paying the IRS penalty for not offering insurance, utilizing lower-cost policies or health reimbursement accounts, or covering only some of their employees. Jay Greene "Survey notes drop in small businesses offering health insurance," www.crainsdetroit.com (Feb. 14, 2016).