An increase in health insurance premiums would force many small businesses in the United States to stop paying health care coverage for their employees. A survey sponsored by the Healthcare Leadership Council (HLC) titled Rethinking the Problem of the Uninsured found that a five to nine percent increase in insurance premiums would result in eleven percent of small business employers dropping health care coverage for their employees.

This has the HLC worried because the projected increase in premiums for the year 2000 is ten percent. Companies that currently do not offer coverage responded that if there were a ten percent subsidy of premiums they would offer healthcare coverage.   For some respondents it would take as much as a twenty-six percent subsidy of premium coverage before they would introduce this benefit.

The Healthcare Leadership Council

The results of the survey were presented at the HLC conference on July 18^th, 2000.   The goal of the HLC, formed in 1988 by CEOs from all disciplines in the health care system, is to improve the affordability, innovation and quality of the American health care system.   Access to affordable health care coverage for all Americans is an HLC priority.  

They wish to reduce the "rolls of the uninsured", but at the same time be free from excessive government regulation.   Their goal is to create an innovative, competitive and cost effective system that is market-based but also provides affordable coverage to all.

Recent Research Commissioned by HLC

Three recent research projects were commissioned by HLC to determine what options would best increase health care coverage for Americans.

The first is Research to parse data on the uninsured and to determine how to most cost-effectively target tax subsidies.   This study found that the number of workers in a family determines whether or not the family is insured, not the industry of employment.   The study states that "the availability of group coverage through at least one employed family member determines whether or not the great majority of Americans in families with employment are insured or uninsured".

The second project by George Washington University Center for Health Services looked at stopgap community coverage models that have developed throughout the country for groups of uninsured individuals. The HCL see the possibility of information gained from these experimental models being used for new small employer coverage programs.  

Lastly, American Viewpoint surveyed small business attitudes towards health coverage and found that many employers would offer coverage if premiums were subsidized through tax incentives.  

Conclusions and Recommendations of the HLC

Through these studies the HLC has determined that tax incentives would give small employers the incentive to provide coverage and the incentive to employees to accept coverage for their dependents as well as themselves.   This would result in more Americans being insured, lower health care costs, and more affordable coverage for small businesses.

The reports, Rethinking the Problems of the Uninsured: Obstacles to Coverage & Policy Options and Health Insurance in America: Approaches to Expanding Coverage are available from the Healthcare Leadership Council by phoning (202) 452-8700.   There is a minimal charge of $10 for shipping and postage.