Small Business Problems - Health Insurance

Aug 2012 Fact Sheet 2| Problems of Greatest Concern The "Cost of Health Insurance" continues as the #1 small-business problem, a position it has held for 25 years. The #1 ranking is reflected in all but 9 of the 50 sub-categories of business analyzed in this survey. 4 of the 9 defectors, including agriculture and transportation/warehousing, rank Energy Costs, except Electricity as their #1 problem. The percent of small-business owners who cite the "Cost of Health Insurance" as critical fell slightly from... 56% 52% 2008 2012 In 2004, this figure reached 66% during the height of yearly premium increases. But despite the slowing rate of premium increases, the percent who find it a critical problem overshadows its #2 rival, "Uncertainty Over Economic Conditions" by 14 percentage points. Health insurance costs for small firms have risen 103% in the last decade, an increase outpacing wages and inflation. + 103% Rising health insurance costs have proved unaffordable for many small business owners resulting in some owners terminating their employer sponsored health insurance program and delaying or prohibiting non-offering firms from offering the benefit. 60% $6,000 Cost $5,000 50% Offer Rates $4,000 40% $3,000 30% $2,000 2000 2001 2002 2003 2004 2005 2006 2008 2009 2010 2011 This trend is reflected in the decline in small firm offer rates from... 47% 36% 2001 2012 To View Complete Report Go To: www.nfib.com/pp2012 For More Small Business Information Visit: www.nfib.com NFIB Research The Voice of Small Business |Foundation % of Owners Who Offer Health Insurance Avg Yearly Premiums for Individual Health Insurance