The national third quarter Small and Mid-Sized Business Job Generation Outlook survey assessed responses from 400 executives representing a variety of industries, 73 percent of which were from small or mid-sized businesses. Responses indicated that the cost of providing healthcare coverage to employees is executives’ chief concern. Small businesses, defined as having fewer than 100 employees, and mid-sized businesses, with between 100 and 199 employees, ranked the cost of healthcare as a bigger challenge than talent availability, uncertainty in tax policy, domestic and international competition and environmental regulations, according to the survey.
According to the survey, small and mid-sized businesses are using a variety of strategies to combat the rising cost of employee healthcare. Highlights from the survey are shown below.
- Twenty-nine percent of respondents said they will review plans periodically and may change their healthcare provider or plan.
- Twenty-five percent will increase employee contributions.
- Ten percent will engage an employee health education or wellness program.
- Six percent will cut benefits.
- Fourteen percent will do nothing and absorb the costs.
- Twenty-two percent cited other strategies, such as expecting congressional exemption from the PPACA mandate, no longer hiring smokers and charging customers more.
- Seventy-eight percent said they were somewhat or very pessimistic about bipartisanship in the federal government. This number marks a significant increase from the 67 percent who responded similarly in the second quarter.
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