Small Businesses Struggle To Afford Employer Health Insurance

American Public Media's "Marketplace" examined how small businesses are dealing with rapidly rising employee health insurance costs. "Marketplace" profiled Lincoln Precision Machining, a Massachusetts company with about 20 employees that has seen health insurance premiums for each worker increase from $460 per month in 1999 to nearly $1,500 per month today. The company used to pay the entire premium but now requires workers to pay about $300 per month.

John Arensmeyer, head of the Small Business Majority, said, "Many times, entrepreneurs can't get health insurance because they're too high a risk," adding, "If you run a small business and you can get rated just based on yourself or a few other employees, you may be out of luck finding affordable insurance at all." Arensmeyer also said that small businesses need a system that guarantees access to affordable health insurance.