Small business insurance IQ survey reveals health care knowledge gaps

Many Small Business Owners Unaware of Financial Effects of Employee Health Care Coverage

Small business owners are struggling to provide health insurance for their staff and do not feel confident in determining the health insurance that best fits their employees’ needs, according to a new survey by the National Association of Insurance Commissioners (NAIC). The finding highlights the need for more insurance education, even as the debate over national health care reform continues around the country.

In the NAIC survey, conducted July 22-31, 2009, among a participant sample of 500 small business decision makers, 64 percent of small business owners responded that they are not confident picking a health insurance policy that fits their budgets and their employees’ needs. One-third admitted that they cannot afford to provide health insurance to their employees.

Additionally, the study found a clear gap in understanding the fiscal responsibilities associated with offering health insurance. Of the small business owners surveyed, 60 percent said they are not confident they understand the tax implications of paying for a portion of their employees’ health insurance premiums. Only 27 percent say they understand all the factors that can affect their small group health premiums.

How to Improve Your Small Business Health Insurance IQ

These tips will help small business owners better understand their health insurance needs and requirements.

Visit the NAIC’s Consumer Information Source (CIS) at to access key information about insurance companies, including closed insurance complaints, licensing information and key financial data.