Small Business Impact of Health Coverage

Wells Fargo and Gallup put out the results of a poll of small business owners last week that underscores just how challenging it is for them to provide healthcare coverage for their employees even though they clearly know this is an important benefit in attracting the right type of talent.

A few of the key facts from the study are:

• 9 of 10 say the healthcare system needs to change
• 6 of 10 say a complete overhaul is necessary
• 81% said health insurance improves employee loyalty
• 55% do not offer health insurance with 45% of those citing cost as the issue

Here is a good quote from a Wells Fargo executive:

“The majority of small business owners recognize the benefits of offering affordable healthcare coverage to their employees, but many feel they cannot afford to do so,” said Rebecca Macieira-Kaufmann, executive vice president and head of Wells Fargo’s small business segment. “A third of small business owners are cutting back on non-capital investments so they can provide healthcare for their employees. For several years health insurance has been a major concern for small business owners, and its impact is significant.”

Since small business is where much of our job growth has been over the past decade, this should raise flags for us.  I think it is critical that we find a solution that creates easily accessible healthcare for everyone, but I think it is ridiculous that working families can’t afford care or aren’t provided care.