Health care continues to get significantly more expensive for small businesses, according to a recent survey by the National Federation of Independent Business. The almost 1,000 participating companies reported a 12% increase over last year.
According to the NFIB, the rising cost of healthcare was cited as the number one business concern. When one considers the following statistics, it is easy to understand why.
- 66% of small businesses expect the higher costs to lower profitability
NOTE: This is not 100% because some employers intend to pass on some or all of the higher cost to their employees, with others hoping to increase productivity to offset at least a portion of their increased health care expenses. - 40% say the increase in these expenses will lead to the postponement or elimination of investment in their businesses.
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The NFIB notes the small business community is generally confused by the Affordable Care Act. Only 17% of business owners surveyed say they are very familiar with the law, while 49% say they are only somewhat familiar with ObamaCare. Over 40% of business owners say the media has been the primary source of information.