According to SBA, the rate of employment by small businesses is more than half the percentage in private sector employment.
The small business clients of insurance brokers expressed that their clients are eyeing premiums which are going up an average of about 15 percent for the coming year. It is double the rate of thelast year’s hike. The annual premium of an employee in 2008 was $4,500 and in 2010 it is expected to go to $5,500.
As per consultants, the premiums are increasing for many small businesses. Higher premiums are also rising partly because of medical costs. This is forcing Meicare to raise premiums. There also increase in health insurance bills for big employers.
As per the small businesses, the lack of options is the only main reason because of which they are paying higher premiums for less and less coverage. They have been paying very high premiums more this year than ever.