Lucas Group’s New Survey Reveals Health Care Remains Top Concern for Businesses
| PR Web |
Health care costs continue to be top of mind for leaders of America's small and mid-sized businesses (SMBs). Exactly how companies are addressing that concern, however, varies widely across SMBs, according to the latest survey from
Each quarter, the SMB Job Generation Outlook surveys executive leaders on their economic opinions and hiring plans. The survey also gathers insights on how federal policy affects small and mid-sized businesses. In the third quarter, respondents weighed in on the Affordable Care Act (ACA) as they prepare for the employer mandate, which is set to begin in 2015 and requires businesses with more than 50 employees to provide health care coverage or pay fines.
Responding business leaders ranked health care costs the No. 1 challenge affecting their company, over talent availability, uncertainty in tax policy, domestic and international competition and environmental regulations. This chief concern is consistent with previous survey findings. Despite its persistency, only 45 percent reported they were ready for ACA implementation, a slight improvement over the 39 percent that responded similarly a year ago.
To address rising health care costs, SMBs are employing a variety of strategies (respondents were permitted more than one response):
   • 29 percent said they will review plans periodically and may change their health care provider or plan.
   • 25 percent will increase employee contributions.
   • 10 percent will enact higher deductibles/copays.
   • 10 percent will engage an employee health education/wellness program.
   • 9 percent will cut back on full-time employees or cut hours to part-time.
   • 6 percent will cut benefits.
   • 14 percent will do nothing and absorb the costs.
   • 22 percent cited other strategies. Some responses included: o "We expect a congressional exemption from ACA."
o "Charging more to customers." "We often hear politicians cite small and mid-sized businesses as those that may be affected most by the Affordable Care Act," said
   • 78 percent said they were somewhat or very pessimistic about bipartisanship in the federal government, an all-time high for the survey and significantly higher than the 67 percent who responded similarly in the second quarter.
   • 59 percent said increasing the federal minimum wage to
   • 61 percent said it is difficult or extremely difficult to find qualified candidates for open positions.
The SMB Job Generation Outlook is conducted by
About the Survey
Conducted quarterly, the SMB Job Generation Outlook is a national survey of SMB top business leaders. The Q3 survey was conducted by
About
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