May 24, 2011 – More than 50 percent of the small business owners surveyed across Michigan are taking a wait and see approach to forthcoming changes that are the result of national health care reform passed last year, according to a new survey of the members of the Michigan Business and Professional Association (MBPA) and the Michigan Food and Beverage Association (MFBA) headquartered in Warren.
Since approximately two-thirds of the respondents have 10 or fewer employees, their greatest interest is centered on increasing health care premiums and the impact of the new health care insurance “Exchanges.” In all, 52 percent of respondents believe that their employees will probably be interested in participating in the federally run health care “Exchanges” created by the legislation while 56 percent of business owners plan to “review all options and offerings” before making any changes to their current approach for providing employee health care benefits.
Jennifer Kluge, COO of both Associations said, “Small business has a very important stake in the implementation of national health care reform especially since the last several years of economic challenges forced many small business owners to reduce or cut insurance benefits as a cost saving measure. That’s why our Associations have been very active with lawmakers, both federally and in Michigan via various action coalitions and workgroups, to make them aware of the voice of small businesses on this issue.”
According to Kluge, the survey sent to Association members offers a clear look at how many Michigan small business owners currently view the fluctuations in health care programs as a result of the economy and impending health care reform changes.
• Their main concerns about the new national health care laws include:
o Costs that will continue to rise dramatically,
o Weakened or reduced coverage,
o That the quality of health care will suffer,
o Information may be too complex to understand,
o Administrative lack of experience and complicated bureaucracy,
o That changes won’t be implemented quick enough to stem rising costs,
o People should not be forced to buy health insurance nor be penalized for not purchasing it.
• While 89 percent still offer employee health care, only 81 percent are firmly committed to continuing to offer employer sponsored health care.
• Fully 65 percent of business owners felt that their employees still prefer a health care plan managed by a private entity.
• Among the 24 percent who admitted they had considered cancelling their group health care insurance in the past year, 67 percent stated that it is due to dramatically increased health care premiums.
“The one thing that our members have been very pleased with so far is the fact that Congress and the President realized they made a mistake in imposing the 1099 reporting provision in the original legislation and rolled it back this April,” said Kluge. “Lawmakers understood that it would impose a heavy burden on small business. We hope the federal government will be just as open to future modifications of any harmful provisions that may surface as the law is enacted over the next several years.“
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Based in Warren, Mich., the MBPA (www.michbusiness.org) is the largest business organization of small to medium-sized businesses in Michigan, representing more than 20,000 members who employ over 180,0000 persons. Members include attorneys, physicians, architects, accountants, construction companies, banks, retailers, wholesalers, manufacturers and the like. Member businesses receive numerous benefits including free legal and financial consultations; discounted technology, automotive and office products; employee training and recruitment assistance; and competitive insurance rates. The MBPA is a sister association to the Michigan Food & Beverage Association (MFBA, www.michfood.org) with more than 3,400 members.
Michigan Business and Professional Association
27700 Hoover Rd., Warren, MI 48093-6306
(888) 277-6464 * www.michbusiness.org
