"Small Employers and Health Benefits: Findings from the 2002 Small Employer Health Benefits Survey"
No author cited
Employee Benefit Research Institute, January 2003.
This study from the Employee Benefits Research Institute (EBRI) reports that 19 percent of small businesses offering health coverage made changes to their plans between 2001 and 2002. About one quarter of those sampled said that they would change their coverage and another 3 percent said they would drop it altogether if the cost were to increase by 5 percent or more. Most small businesses that do offer health benefits, however, believe that it has a positive impact on areas such as recruitment, retention and productivity. This study’s results seem to bear out that assumption in regards to retention as companies sampled that did not offer benefits reported higher turnover rates. Many not offering health benefits said they were extremely likely or very likely to do so in the next two years, with another 22 percent saying that they are somewhat likely to offer coverage.
Interestingly, the study reveals distinct differences between companies that offer health plans and those that do not. Compensation in firms not offering health coverage tends to be considerably lower than in firms that do offer it. Employers not offering health benefits are also more likely to have a smaller proportion of full-time employees, and a larger proportion of females, workers under age 30 and minority employees.
