"Small Employers and Health Benefits: Findings from the 2002
Small Employer Health Benefits Survey"
No author cited
Employee Benefit Research Institute, January 2003.
Available Online
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.
