Some small businesses expect continued increases in health costs

The (Florence, Ala.) Times Daily: Some small business owners are worried about the continuing rise of health care costs. "Business owners say they offer health care benefits to attract employees and retain workers. But providing health care to employees is the second highest cost for business owners behind payroll and many owners fear costs will only increase, according to a non-scientific survey taken by the Shoals Chamber of Commerce of 33 small local businesses" (Stokes, 7/26).

That is not expected to change for many businesses, The Cincinnati Enquirer reports. "Unless you operate a business with fewer than two dozen employees, don't look for much relief from health care costs in 2011. As companies throughout Greater Cincinnati and Northern Kentucky start negotiating with insurers for 2011 benefit plans, their costs continue to increase, they're facing average premium hikes of up to 20 percent for next year and many are still one catastrophic medical claim from skyrocketing rates." Only businesses with fewer than 25 employees and average salaries of $50,000 will get new tax credits as part of the health law to defray those costs (Peale, 7/26).

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This article was reprinted from khn.org with permission from the Henry J. Kaiser Family Foundation. Kaiser Health News, an editorially independent news service, is a program of the Kaiser Family Foundation, a nonpartisan health care policy research organization unaffiliated with Kaiser Permanente.