More small firms drop healthcare

Wall Street Journal, May 26, 2009

Accelerating healthcare premiums and sharp revenue shortfalls due to the recession are forcing some small companies to choose between staying in business and dropping health insurance or laying off workers. Health-insurance premiums for single workers rose 74% for small businesses from 2001 to 2008, according to nonprofit research group Kaiser Family Foundation. About 10% of small businesses are considering eliminating coverage over the next year, up from 3% in 2005, according to a recent survey by National Small Business Association.


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