Small Business Owners Say Healthcare System Needs to Change

The information comes from a recently conducted Wells Fargo/Gallup survey‏.

Salem-News.com

(PORTLAND, Ore.) - The state of the current U.S. healthcare system remains a primary concern for small business owners, according to the latest Wells Fargo/Gallup Small Business Index.

Almost nine out of 10 small business owners surveyed said the current healthcare system is in need of change, with six out of 10 saying a complete overhaul is in order.

Small business owners were asked what effect adequate health insurance has on a company's employees. Eighty-four percent agreed that adequate coverage attracts the best qualified employees, and 81 percent agreed that it improves employee loyalty. Eighty-three percent believe it reduces an employee's likelihood to leave a company.

The Index found 55 percent of small business owners do not offer any health insurance to their employees, citing high cost as the number one reason. Of these business owners, 55 percent said they would be more likely to offer such benefits if the federal government provided some financial incentives for this coverage.

Results are based on telephone interviews with 603 small business owners nationwide conducted July 12-23. The margin of sampling error is + 4 percentage points.

"The majority of small business owners recognize the benefits of offering affordable healthcare coverage to their employees, but many feel they cannot afford to do so," said Rebecca Macieira-Kaufmann, executive vice president and head of Wells Fargo's small business segment.

"A third of small business owners are cutting back on non-capital investments so they can provide healthcare for their employees. For several years health insurance has been a major concern for small business owners, and its impact is significant."

The Index consists of two dimensions: 1) Owners' rating of the current situation of their businesses and, 2) Owners' rating of how they expect their businesses to perform over the next 12 months. An Index score of zero reflects that an equal number of small business owners are optimistic and pessimistic about their companies' situation.

For more than 60 years, the Gallup Organization has been a recognized leader in the measurement and analysis of people's attitudes, opinions and behavior. While best known for the Gallup Poll, founded in 1935, Gallup's current activities consist largely of providing marketing and management research, advisory services and education to the world's largest corporations and institutions.