Employee Health Costs Rising
Despite the rising costs of health insurance in recent years, most small businesses to continue to offer the same level of benefits, a recent study shows.
Between 2000 and 2005, workers insurance costs have risen by 30 per cent for companies with fewer than 25 employees, according to a joint report from the Kauffman Foundation, Kansas City, Mo. Based on the entrepreneurial spirit of the human rights group, and the RAND Corporation, a Santa Monica - Calif .- Based research group. Indeed, companies of this size instead of requiring participation in the health insurance plans that have been most affected by insurance rates higher, the researcher said.
But during the same five-year period, the number of small businesses offering services dump has remained below 1.5 per cent, the study found.
“Maybe these small businesses - and, ultimately, their collaborators - were prepared to accept the burden of the rising costs of health insurance, even if it meant, higher wages,” Christine Eibner, associate economist at RAND, said in a statement. “What we do not know is whether small businesses and their employees continue to this compromise,” she added.
The study, based on a survey of more than 2500 companies in Germany, it also found that small businesses are slightly less likely to offer dental or other reports that large companies, and often more had assured high.
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