Rising costs prompting small businesses to drop health insurance benefits

As the recession deepens, small businesses and those buying insurance on their own are struggling to maintain coverage amid double-digit rate increases. According to a new report by the Illinois Main Street Alliance, 12% of nearly 500 small businesses polled in a dozen states have dropped coverage for their workers within the past two years. In addition, 35% reported switching within the past two years to insurance that covers fewer services.