Cost Keeps Care Contained

March 20, 2001 (PLANSPONSOR.com) - A new survey finds cost as the main impediment for two-thirds of small employers that don't offer health coverage, while over half (51%) don't offer it because their employees wouldn't be able to afford their share.

The survey found that more than 50% of employers pay the full cost of the health insurance premium for their employees. Furthermore, 35% of the employer respondents make contributions toward spouse and dependent children coverage for their employees.

The survey also found:

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  • 84% support a tax credit to help their lower- income employees purchase employer-sponsored health insurance coverage;
  • 76% support a tax credit that could be applied to purchase employer-sponsored coverage or coverage in the individual market
  • 71% would cooperate in the administration of a program offering tax incentives for the purchase of health insurance that could be used in the health plan they sponsor for their employees.

The national survey includes the responses of 300 owners or benefits managers for companies with 2-50 eligible employees.  It was sponsored by the National Association of Health Underwriters (NAHU) and co-sponsored by the Healthcare Leadership Council (HLC), the National Association of Manufacturers (NAM) and the US Chamber of Commerce.

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